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Africa’s clean energy manufacturing ambitions could extend beyond solar panels to battery materials, electric vehicles, green steel and low-carbon chemicals, as the continent looks to capture more value from its mineral resources and renewable energy potential.
The opportunity is significant. According to the International Energy Agency (IEA), Africa currently accounts for less than 1% of the value generated from clean energy technology manufacturing, despite supplying around 75% of global manganese, 70% of cobalt and nearly 20% of copper. These minerals are essential inputs for batteries and other energy technologies.
The IEA’s 2025 report, Stepping Up the Value Chain in Africa, identifies mineral processing, low-emission industrial materials and clean energy equipment manufacturing as three potential growth areas for the continent.
However, the challenge extends beyond establishing manufacturing facilities. Africa imports 94% of its installed solar panels from China, with these imports costing $2.4 billion in the 12 months to June, according to figures presented by the United Nations Development Programme (UNDP) at a recent Pan-African policy conference. Some of the continent’s new manufacturing capacity is also intended for export markets, while domestic demand continues to rely on imported equipment.
The IEA identifies opportunities for East African countries to produce spherical graphite for battery anodes, while South Africa and Gabon could expand production of high-purity manganese sulphate. The Democratic Republic of Congo (DRC) and Zambia also have resources that could support processed cobalt and copper production.
Under the IEA’s high-potential scenario, the market value of Africa’s mineral sector could reach $120 billion by 2040, nearly 75% higher than current levels.
The opportunity also extends to green industrial materials. Countries with renewable electricity resources could use low-carbon power and green hydrogen to produce iron and ammonia. The IEA estimates that low-emission iron exports could fetch more than four times the value of equivalent iron ore exports at current prices.
This would allow African economies to move further into industrial processing rather than relying primarily on mineral exports.
India’s solar manufacturing expansion provides an example of how government intervention, domestic demand and manufacturing incentives can help build an industry.
The country’s solar module manufacturing capacity increased from 2.3 GW in 2014 to approximately 172 GW by March 2026, according to government data.
The PLI scheme linked financial incentives to the production and sale of high-efficiency modules, with additional benefits for manufacturers achieving higher domestic value addition. The government also introduced ALMM requirements to support demand for domestically listed products.
The approach helped India expand its manufacturing base and attract investment across the solar module and cell segments.
For African countries, the lesson is that manufacturing incentives need to be accompanied by investments in mineral processing, component production, technology development and regional supply chains.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
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