(Bloomberg) -- Cummins Inc. aims to double its revenue from Africa by the end of the decade as the US engine and power generator maker capitalizes on demand to provide 300 million people on the continent with electricity.
The growing gap between demand and supply for power will spur orders for the company’s product, said Thierry Pimi, vice president of Cummins International Distribution Business. The Middle East and Africa accounted for 2% of the Columbus, Indiana-based company’s revenue of $34.1 billion in 2023. The firm is targeting revenue of $42 billion to $45 billion by the end of the decade.
While sub-Saharan Africa is home to six of the top-10 fastest-growing economies in the world, it also accounts for about 85% of the world’s population without electricity. Cummins expects efforts to bring power to millions of unconnected people, expansion in extractive industries and the ongoing maturity of key economies that support gross domestic product growth and wealth creation to drive demand for its goods and services.
“In Africa, we play at the heart of the major economic drivers of growth,” Pimi said in an interview in Bloomberg’s Johannesburg office on Tuesday. “Most African economies are extractive economies and Africa is probably the largest and only frontier market where the energy gap is still growing until 2035.”
Sign up for the twice-weekly Next Africa newsletter for the latest business and economic news from the continent.
The World Bank and the African Development Bank have come up with a plan to provide electricity to 300 million Africans by 2030. The institutions have pledged $30 billion to the project, dubbed Mission 300.
Cummins, whose industrial diesel and natural gas engines and generators are used in mining and oil and gas production, as well as data centers and hospitals, operates its regional head offices out of South Africa and employs about 1,500 people across the continent, Pimi said.
Its biggest regional markets by value are currently South Africa, Nigeria, Egypt and Ghana, he said.
You can follow Bloomberg’s reporting on Africa on WhatsApp. Sign up here.
©2024 Bloomberg L.P.