A new policy paper from the African Policy Research Institute (APRI) recommends that Africa adopt a regionalized PV strategy to successfully integrate into the global solar value chain. It warns that without a coordinated approach, individual countries are unlikely to integrate into the global market.
APRI recommends a regionalized solar energy strategy in Africa to support the development of a competitive PV industry on the continent.
The institute’s new policy document, “Photovoltaic solar energy production in Africa: opportunity or mirage?”, analyzes data on critical materials, trade and investment flows to investigate how African countries can leverage their natural resources and favorable geographical conditions for the production of PV systems.
The article warns that if African countries work together individually, they will continue to face challenges such as the concentrated global market, limited technological capacity, financial resources and infrastructure.
APRI argues that a regionalized PV strategy, linking countries with major mineral exports with countries with solar technology capabilities, is essential. The article says the prospect of a single African nation developing or integrating a PV production chain is unlikely, and calls for the consolidation of opportunities into a regional solar value chain strategy.
A key opportunity for a future solar energy production chain in Africa is highlighted as raw material exports. The continent is already a major exporter of copper and tin, with the policy document showing that every African country exports at least one of the key solar raw materials in primary or processed form. However, many of these exports are in unprocessed or semi-processed forms, meaning the continent only accounts for a small share of the value. APRI says that to maximize benefits, Africa must develop its processing capabilities to move up the value chain.
APRI says African countries can capitalize on their mineral resources by attracting investment in processing and manufacturing industries. However, this requires the development of infrastructure, technological capabilities and a favorable regulatory environment to attract both domestic and international investments.
The document emphasizes the complexity of a regional approach due to geopolitical interests. It urges regional organizations such as the African Union and the African Export-Import Bank to promote integration and attract foreign direct investment through regulatory improvements, tax incentives and partnerships.
APRI also calls for prioritizing the local deployment of solar energy to meet domestic energy needs, which will require investments in education, R&D and workforce training.
APRI suggests that a crucial first step towards a regionalized strategy would be advanced and systematic geological mapping of Africa’s natural resources, “to dispel myths surrounding Africa’s prospects in building a solar energy production value chain to help dissipate energy.”
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