The Future of Solar Manufacturing in the Sahel

The Sahel region holds immense potential for solar energy development, yet it remains underutilized. Despite having some of the highest levels of solar irradiation in the world, solar photovoltaic (PV) capacity in the region is still limited. The African Development Bank’s Desert to Power initiative aims to transform the Sahel into a solar energy powerhouse, but achieving this requires a shift toward local solar manufacturing to improve cost efficiency and economic sustainability.

This report explores the potential of solar manufacturing in Burkina Faso, Ethiopia, Nigeria, and Senegal, analyzing opportunities, challenges, and the necessary actions required to establish a competitive solar industry.

The Case for Solar Manufacturing in the Sahel

Africa’s electricity demand is growing rapidly, driven by population growth, urbanization, and industrialization. At the same time, commitments to renewable energy are increasing in response to climate change concerns. In this context, solar manufacturing presents an opportunity for Sahelian nations to enhance energy security, attract investment, create jobs, and foster economic diversification.

Global trends indicate that solar energy is becoming the dominant form of new power generation. However, China currently controls 85% of global polysilicon production and 95% of wafer production, making it difficult for new entrants to compete in the upstream solar supply chain. The most viable entry point for Sahelian countries is in solar module assembly, which requires less capital investment, infrastructure, and technical expertise compared to upstream production.

The economic benefits of local solar manufacturing include:

• Economic Diversification: The Sahel is largely dependent on agriculture and extractive industries. Developing a solar manufacturing sector can help stabilize economies and reduce reliance on volatile global commodity markets
• Job Creation: A 2 GW solar manufacturing industry could generate between 5,000 and 8,000 jobs, offering employment opportunities across engineering, logistics, sales, and technical services.
• Energy Independence: With locally produced solar panels, Sahelian nations can reduce dependency on expensive imports and improve access to affordable, renewable energy.
• Climate and Environmental Benefits: Scaling up solar energy production can help reduce greenhouse gas emissions and mitigate climate change impacts.

Country-Specific Analysis: Challenges & Opportunities

Each country in this study presents unique strengths and challenges in its ability to develop a viable solar manufacturing industry. While all four nations have significant solar potential, differences in infrastructure, demand, and policy support influence their capacity for scaling up production.

Burkina Faso: Strong Commitment, Infrastructure Deficiencies

Burkina Faso has one of the lowest electrification rates in the region, with only 19% of the population having access to electricity. The government has ambitious plans to install 800 MW of solar energy by 2030, but the country faces several obstacles:

• There is no local production of key solar panel components such as glass, aluminium, cables, and electrical equipment.
• As a landlocked nation, Burkina Faso relies on imports, increasing logistics and transportation costs.
• The cost of locally assembled solar panels is 12% higher than importing from China due to high production costs and inefficient supply chains.

For Burkina Faso to become competitive in solar manufacturing, it must improve infrastructure, transportation networks, and supply chain efficiency while encouraging regional trade partnerships.

Ethiopia: A Strong Manufacturing Base, Low Domestic Solar Demand

Ethiopia aims to become a regional renewable energy hub, with plans to install 30 GW of renewable energy by 2037. However, only 600 MW is allocated to solar PV, as the country prioritizes hydropower. Ethiopia’s strengths include:

• Low industrial electricity costs (2.7 cents per kWh), making it one of the cheapest energy producers in Africa.
• A well-developed manufacturing ecosystem with strong industrial zones, particularly in electrical and metal processing.
• Existing technical training programs in electronics and renewable energy.

However, Ethiopia imports all core solar components and lacks a strong domestic solar market. To scale up solar manufacturing, the country needs to stimulate domestic demand and position itself as an exporter of solar components to neighboring nations.

Nigeria: The Most Promising Market for Solar Manufacturing

Nigeria has the strongest case for solar manufacturing due to its high domestic demand and existing production capabilities. The government aims to expand installed solar capacity to 8 GW by 2030 and 197 GW by 2050.

• Nigeria is the only country where local solar panel production is cheaper than Chinese imports (by 4%), thanks to import tariffs and locally available raw materials.
• The country can source 4 out of 7 essential components for solar panel assembly domestically, reducing costs and improving supply chain efficiency.
• Nigeria’s regional trade networks and policy incentives create an enabling environment for manufacturing.

With further investment in infrastructure and component production, Nigeria could emerge as a key supplier of solar panels across West Africa.

Senegal: Strong Business Environment, Limited Component Production

Senegal has set a target to increase renewable energy’s share to 40% by 2030, with solar energy playing a central role. The country offers:

• A well-established manufacturing sector with export potential.
• Strong government support for renewable energy through tax incentives and financing programs.
• Good access to ports and transportation infrastructure, easing trade logistics.

However, Senegal remains highly dependent on imports for solar panel components, making local production 10% more expensive than Chinese imports. To compete, Senegal must develop local component supply chains and expand access to affordable raw materials.

Strategic Roadmap for Developing Solar Manufacturing

To successfully scale up solar manufacturing, Sahelian countries must implement targeted strategies that address demand stimulation, infrastructure development, and supply chain integration.

Stimulating Solar PV Demand

• Implement government-led procurement programs to drive local production.
• Offer financial incentives and subsidies for solar energy adoption.
• Strengthen regional trade agreements to expand market access.

Reinforcing Project Bankability

• Develop industrial zones with reliable energy supply to attract investors.
• Provide low-interest loans and tax breaks to reduce startup costs.
• Establish public-private partnerships to support financing.

Strengthening Infrastructure & Workforce Development

• Invest in transportation networks and logistics hubs to lower supply chain costs.
• Expand vocational training programs in solar energy and manufacturing.
• Promote technology transfer initiatives with global solar manufacturers.

Enhancing Regional Integration & Trade Partnerships

• Develop cross-border supply chains to lower production costs.
• Align policies with the African Continental Free Trade Agreement (AfCFTA) to facilitate intra-African trade.
• Encourage partnerships with international investors to secure funding and technical expertise.

A Solar-Powered Future for the Sahel

The Sahel has a unique opportunity to position itself as a leader in solar energy manufacturing. While challenges exist, the combination of high solar potential, strategic policies, and investment in infrastructure can enable these nations to build a sustainable solar industry. By stimulating demand, improving supply chains, and fostering regional trade, Sahelian countries can create a competitive renewable energy market that benefits both local economies and the broader African continent.

With the right strategies and collaborations, the Sahel can harness its abundant solar resources to power a brighter, more sustainable future.

This article by Brickstone reviews the Africa Development Bank on Harnessing the Sun: A Roadmap for Sola Manufacturing in the Sahel

 
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