Africa’s solar boom sparks push to build at home

Africa's largest economies are boosting their ambitions to establish domestic solar manufacturing capabilities, a move driven by a desire for industrial growth and concerns over reliance on Chinese imports. Ethiopia, South Africa, Morocco, and Nigeria have been intensifying efforts to localize the production of solar power equipment, from module assembly to more complex manufacturing, according to industry experts.

However, analysts maintain that China will likely continue to dominate the global solar cell and component market, as its exports have skyrocketed due to an abundance of domestic supply. Chinese investment in renewable energy projects across Africa totaled $66 billion between 2010 and 2024, according to the think tank ODI Global.

Several African nations, including South Africa, are actively developing their own solar manufacturing facilities to capture more value from their expanding solar markets and adapt to evolving electricity demands. For instance, South Africa's utility Eskom plans to construct a 1-gigawatt solar manufacturing facility to increase value, respond to shifting electricity needs, and lessen its dependence on Chinese imports.

Nigeria's production of solar panels is also rapidly growing, with local assembly capacity expanding from around 120 megawatts to roughly 300 megawatts in the past two years. In 2024, Nigeria imported nearly as many solar kits as South Africa, largely from China.

The push for at-home solar manufacturing is closely tied to changes in Africa's power markets. Solar systems, such as rooftop and distributed ones, are increasingly adopted in South Africa, decreasing the demand on national grids and pressuring utilities to diversify. South Africa is the continent's largest importer of solar equipment, purchasing over 3 gigawatts annually, a majority of which are sourced from China.

Analysts believe that given South Africa's substantial demand, it is among the best candidates for localized solar production. The surge in solar investment reflects a notable change in the continent, even if actual manufacturing capacity is still modest. Morocco, South Africa, and Egypt are among the nations that have seen significant growth in their solar manufacturing capacity, with Egypt planning to launch gigawatt-scale projects.

The demand for solar power in Africa has surged, with GOGLA estimating that over 10 million solar kits were sold across the continent in 2025, serving approximately 148 million people – a 10% increase from the previous year. However, the solar industry in Africa operates within a highly concentrated global supply chain dominated by China.

Currently, Africa lacks commercial-scale solar cell manufacturing, meaning new assembly plants must still rely on imported Chinese components for the most sophisticated parts of the supply chain. Despite this, experts highlight the potential of China's investment in the continent to transfer technology and create jobs. However, it's important to note that China's continued role in supplying solar components to Africa is likely to persist, as experts point out the continent's limited progress in developing fully integrated solar industries.