China’s manufacturing dominance remains tightly bound to Africa’s struggle for energy access. The continent holds the raw materials essential for producing renewable energy technologies, yet its factories lack the scale and efficiency to compete with China’s vast industrial base.
As a result, African nations remain reliant on Chinese-made equipment even as they seek to climb the manufacturing value chain.
WiSolar, a solar energy firm operating in South Africa and Nigeria, illustrates this dynamic. Founded in 2016 as an inverter Original Equipment Manufacturer, the company eventually shifted its production to China, citing the prohibitive costs of manufacturing locally and the competitive advantages of China’s industrial ecosystem.
Tin, Copper, And Silicon Reserves For Solar Panel Production
Tonye Irims, WiSolar’s founder and chief executive, points out that Africa’s solar potential is vast, underpinned by its abundant reserves of tin, copper, and silicon, essential materials for solar panel production. Yet despite these natural advantages, high production costs, scarce affordable financing, limited government support, and weak industrial policies continue to constrain the continent’s manufacturing ambitions.
Emerging projects like South Africa’s 300-megawatt Seraphim solar panel manufacturing plant suggest that African countries may yet capture a foothold in the solar manufacturing value chain. Seraphim, officially known as Jiangsu Seraphim Solar System Co., Ltd., produces both rooftop solar modules and the photovoltaic cells that power them, with some units made in South Africa sold as far away as the United States.
Still, the goal need not be to build industries that compete head-on with China. “If you talk to these Chinese manufacturers, you know it’s very cost-effective to produce in China,” said Yixian Sun, an associate professor of international development at the University of Bath. “But if they see benefits in investing locally — if host governments offer incentives and stable policies — there’s a strong incentive to explore new manufacturing markets.”
Small Solar Panels Tailored to Household Use
Given the complexity of producing solar panels from raw materials to finished products, Sun added, it remains unrealistic for countries with limited industrial bases to start from scratch. Instead, he suggested, African economies could focus on assembly or specialized products that complement Chinese manufacturing. “Maybe we can do some assemblage that helps Chinese manufacturers lower export costs, while creating local jobs and encouraging governments to offer tax incentives,” he said.
Such arrangements could also open space for local innovation. In Pakistan, for instance, small solar panels tailored to household use are made domestically because they are too low-margin for Chinese firms to produce efficiently. “Similarly, different African countries may find niches to specialize in, while Chinese companies can offer technology and expertise,” said Sun, who is also a UKRI Future Leaders Fellow and the principal investigator at SGAIN, noted.
Resources, Incentives and Policies to Sustain Industrial Development
Muyi Yang, a senior energy analyst at the global think tank, Ember, agreed that a few regional manufacturing hubs may eventually serve the entire continent. “There isn’t a single country that has a completely clean-energy equipment supply chain,” he said. “Africa will likely see a few hubs emerge to provide equipment and facilities across borders. That’s a more realistic scenario.”
Even in cases where manufacturing is unfeasible, Yang said, countries can still gain valuable know-how. “There will be technological spillover, because you need local staff for installation, operation, and maintenance,” he said. Some equipment — such as large solar floaters — may even be cheaper to produce locally because of high shipping costs. “That creates demand for complementary industries to grow,” he added.
Ultimately, the question for African policymakers is whether they have the resources, incentives, and coherent policies to sustain industrial development. The answer will determine how — and how much — the continent can benefit from the solar manufacturing value chain in the years ahead.
