Africa has an opportunity to become a global hub for clean-energy manufacturing rather than simply supplying the raw materials behind the world’s net-zero transition, according to Riyad Mehdeb of the United Nations Development Programme (UNDP). He made the case for clean-energy manufacturing in Africa at a virtual pan-African policy conference co-hosted by Warwick Business School and the Circular Economy Powered Renewable Energy Centre (CEPREC).
The event, Turning the Lights On: Unlocking Circular Value Chains for Africa’s Renewable Energy Transition, brought together academics, policymakers and government ministers. Climate Global News previously reported on plans for the conference on circular value chains in African energy.
CEPREC is a pan-African research centre funded by UK Research and Innovation (UKRI) through the UK Government’s £1 billion Ayrton Fund. Warwick Business School is the largest department of the University of Warwick in central England.
Manufacturing for export, importing for home use
Mr Mehdeb told delegates that the continent must move beyond its traditional role as a supplier of critical minerals and energy resources and become a producer of the technologies needed for the low-carbon economy.
“Africa is increasingly manufacturing for the world’s energy transition, while importing for its own,” he said. “94 per cent of solar panels installed in Africa are imported from China, while much of the new manufacturing capacities are built for export. Those imports cost $2.4 billion in the 12 months to June.”
“The old model exported raw materials, imported finished goods and burned imported fuel to run both,” he added. “The new model starts from the energy source. Africa has more than anyone else. If we keep electricity, data, credit, skills and materials circulating at home, then that is how an energy transition becomes green industrialisation.”
He also linked the trend to digital infrastructure: “Cheap solar power and cheap AI are arriving together, and Africa can use one to build the other. The sun can power the data, the data can keep the solar working.”
Where the value of clean-energy manufacturing in Africa settles
According to the organisers, Africa holds around 60 per cent of the world’s solar resources yet attracts only a small proportion of global energy investment, and most renewable-energy equipment is still sourced from overseas. Mr Mehdeb said the answer lies in stronger local value chains that allow African countries to manufacture, repair and recycle clean-energy technologies closer to home.
“Africa is about to be the largest clean energy system the world has yet seen,” he said. “The strategic question is where its value settles.”
Investment risk lower than often assumed
The conference also heard evidence challenging perceptions of investment risk on the continent. Mr Mehdeb noted that African infrastructure loans have some of the lowest default rates globally, at around two per cent, suggesting a stronger case for investment in clean-energy projects than is often assumed.
Speakers described the transition not only in environmental terms but as an opportunity to drive industrialisation, create jobs and strengthen long-term economic resilience.
Repair, reuse and recycling
Delegates highlighted the importance of a circular economy for renewable technologies. With growing numbers of solar panels, batteries and electronic devices reaching the end of their life, speakers argued that Africa could establish industries focused on repair, reuse and recycling.
Aslem Marungu, Deputy Minister in Namibia’s Ministry of Environment, Forestry and Tourism, said: “Africa must not only be a consumer of renewable energy technologies. We must also be an active creator, recoverer and beneficiary of the value chains that sustain them.”
Policy, skills and finance
Giuliana Battisti, Co-Director of CEPREC and Professor of the Economics of Innovation at Warwick Business School, said the energy transition must deliver economic as well as environmental benefits.
“Developing coherent national policies that focus on centres of excellence, attracting talent that has studied overseas, that should be encouraged to come home and develop local solutions. This needs to be surrounded by a financial ecosystem that takes ideas to market,” she said.
“Setting the energy infrastructure is the foundation of any economic development. The circular economy can provide enormous opportunities. Developing countries are locked into the old system of production, but Africa is not.”
Diana Dalton, Deputy High Commissioner in Kenya, argued that with the right investment and policy support, African countries could lead in green industrial development. “If you get all of those things right, then Africa becomes not a consumer of renewable energy technologies, but really a leader in circular innovation, sustainable manufacturing and green industrial development,” she said.
Frequently asked questions
What did the UNDP say about clean-energy manufacturing in Africa?
Riyad Mehdeb of the UNDP said Africa has an opportunity to become a global clean-energy manufacturing powerhouse rather than simply supplying raw materials for the net-zero transition. He called for stronger local value chains to manufacture, repair and recycle clean-energy technologies.
How many of Africa’s solar panels are imported?
According to Mr Mehdeb, 94 per cent of solar panels installed in Africa are imported from China. He said those imports cost $2.4 billion in the 12 months to June.
Who organised the Turning the Lights On conference?
The virtual pan-African policy conference was co-hosted by Warwick Business School and the Circular Economy Powered Renewable Energy Centre (CEPREC). CEPREC is funded by UKRI through the UK Government’s £1 billion Ayrton Fund.
Are clean-energy investments in Africa high risk?
Mr Mehdeb noted that African infrastructure loans have some of the lowest default rates globally, at around two per cent. He suggested this makes a stronger case for investment in clean-energy projects than is often assumed.
What role does the circular economy play in Africa’s energy transition?
Speakers argued that as solar panels, batteries and electronic devices reach the end of their life, Africa could build industries focused on repair, reuse and recycling.
