In the manufacturing of photovoltaic products, the African Policy Research Institute has called for a regional approach in order to better integrate the continent into the global solar value chain. In its latest policy paper, “Africa’s PV Manufacturing: Opportunity or Mirage?”, APRI highlights the challenges that face any given individual African country trying to achieve competitiveness in the world market without a coordinated effort.
Regionalization: A Path to Competitiveness
The report highlights a regionalized strategy that links mineral-rich countries with those advanced in solar technologies. It cautions that isolated efforts by various African countries are unlikely to succeed in surmounting the challenges of high global market concentration, limited technological expertise, and shortages in infrastructure and financial resources. According to APRI, such a continental strategy would integrate these opportunities into one value chain in solar, thereby unlocking better economic prospects.
Leveraging Africa’s Natural Resources
Africa has immense potential in terms of the supply of solar raw materials, like copper and tin, considered crucial in the chain of PV manufacturing. The report states that each African country exports at least one type of key solar raw material in either its raw or semi-processed form. However, most of such exports take place in their low-value states, limiting the share of the economic values of the global solar market within the continent.
The APRI calls for value capture through the scaling up of processing and manufacturing capacities. Moving up the value chain might have the consequence of maximizing economic returns from Africa’s natural resources.
Investment Attraction
The policy paper outlines steps necessary to attract both domestic and international investments in solar manufacturing, focusing on infrastructure development, technology capability building, and regulatory reforms. APRI calls for the creation of favorable investment conditions like tax incentives, streamlined regulations, and partnerships that will encourage investment in the solar value chain.
Overcoming Geopolitical Challenges
It does, however, realize that this regional approach shall be no easy walk on account of geopolitical considerations. It calls upon the African Union and the African Export-Import Bank to spur integration with better regulations and more incentives. This, says APRI, may unlock foreign direct investment into the continent and consequently promote cooperation among the various countries.
Giving Local Solar Deployment Priority
As it increases its contribution to the global value chain, Africa should not lose sight of deploying solar within the continent for energy solutions. APRI suggests investments in education, research and development, and skills training that are necessary for building a qualified workforce in supporting local industries involved in solar.
Advanced Mapping: The First Step
APRI identifies advanced geological mapping as a crucial first step in implementing a regional solar strategy. Systematic mapping of Africa’s natural resources can provide the foundation for strategic planning and investment, debunking myths about the continent’s potential for building a robust solar value chain.
Conclusion
In its policy paper, APRI underlined a critical opportunity for Africa to convert its rich resources and good geography into a competitive, domestically owned solar manufacturing industry. Yet, regional cooperation, strategic investment, and significant improvements in infrastructure and policy frameworks will be very vital to building up this comparative advantage. A uniform solar value-chain approach could thus present the chances of Africa rising as a prime actor in the global solar economy, with an added benefit: resolving the energy conundrum of the African continent.
