Siemens Energy slows down expansion in Africa

From the newsletter

Germany's Siemens Energy remains key in Africa’s green hydrogen sector, deploying Silyzer PEM electrolysers in Egypt and Namibia. While also active in fossil fuels and renewables, our analysis shows that its hiring spree has slowed after a period of rapid growth, signaling a shift from expansion to consolidation.

• Over the past year, Siemens Energy’s workforce in Africa grew by 20%, but this rate has slowed in recent months, with only 10% growth in the last six months. While hiring still outpaces departures—new hires accounted for 23% of the workforce compared to a 7% attrition rate—the pace of recruitment is clearly cooling.

• Siemens Energy remains concentrated in Egypt, which accounts for 64 percent of its workforce, followed by Johannesburg at 8 percent and Nigeria at 7 percent. Nigeria, Algeria, and Angola are growing but remain secondary locations to Egypt, reflecting a cautious expansion approach.

More details

• Siemens Energy’s heavy presence in Egypt underscores the country’s strategic importance to its operations. Egypt has been a key partner, particularly in large-scale power generation and grid infrastructure projects. The company played a leading role in developing Egypt’s energy sector, most notably through the construction of three massive combined-cycle power plants—Beni Suef, Burullus, and New Capital - which added 14.4 GW to the national grid. These projects required a significant local workforce, reinforcing Egypt as a key operational hub.

• Beyond conventional power, Siemens Energy is also deeply involved in Egypt’s green hydrogen ambitions. In 2022, the company signed an MoU with the government to develop hydrogen projects, starting with a pilot plant. This reflects Egypt’s broader push for renewable energy and Siemens Energy’s expanding role in the transition.

• Beyond specific projects, Egypt’s strategic location and economic advantages make it a natural base for Siemens Energy’s African and Middle Eastern operations. Its proximity to Europe allows the company to manage cross-continental projects efficiently, while strong government support for foreign energy investments further cements its appeal.

• Additionally, Egypt has a well-developed engineering talent pool, making it easier for Siemens Energy to find and retain skilled professionals. These factors position Egypt not just as a key market but also as a regional operations hub.

• Siemens Energy’s hiring slowdown is not uniform across all functions. While engineering remains the dominant function at 31% of the workforce, the company has rapidly expanded its presence in marketing (67% growth), finance (56%), and legal (33%). This suggests a shift from a purely technical focus to strengthening business and regulatory teams. However, its core competencies remain in power generation, with engineering (27%), project commissioning (22%), and power systems (20%) still among the most prevalent skills.

• Attrition patterns also reveal shifting workforce dynamics. The highest turnover rates have been in Morocco (24%), Ivory Coast (13%), and Algeria (12%), while Nigeria, Angola, and Egypt have much lower attrition at 1%, 4%, and 6%, respectively. This suggests greater workforce stability in key markets like Nigeria and Egypt, potentially explaining the hiring slowdown there.

• The company’s hiring sources provide further insights. Siemens Energy has recruited mainly from its parent company Siemens (8 hires), Schneider Electric (4), its subsidiary Siemens Gamesa (3), Methanex Corporation (3), and Elsewedy Electric (3).

• Meanwhile, employees who have left Siemens Energy have moved to Siemens (4), Ras Ghareb Wind Energy (2), Honeywell (2), Alstom (2), and Resonant (2). This reflects a natural talent flow within the industry but also suggests Siemens Energy remains competitive in retaining talent.

• A closer look at the company’s energy portfolio reveals that its oil and gas division continues to grow. Over the past year, this segment hired 28 employees while losing only 4. This indicates that even as the company expands into green hydrogen, it is maintaining its presence in fossil fuel-related projects, balancing its involvement across different energy sectors.

Our take

• Siemens Energy’s workforce trends reveal a company at an inflection point. It has grown significantly over the past year but is now pulling back on rapid expansion. This cooling-off period suggests that the company is taking stock of its workforce needs, focusing on stabilizing key markets, and reinforcing its business operations rather than continuing unchecked hiring.

• The hiring slowdown signals a shift in strategy. While it remains a key employer in energy technology, the company is consolidating rather than aggressively expanding. This suggests a move toward workforce stability and operational efficiency rather than unchecked growth.

• The company’s approach mirrors broader trends in Africa’s energy transition. Companies are now prioritizing sustainable, long-term strategies over rapid expansion. Siemens Energy’s latest workforce trends indicate a shift from expansion to optimization, reinforcing the idea that measured growth is becoming the new norm in the sector.