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Building Africa’s Green Industrial Future through local manufacturing

Why South Africa Needs Local Solar Manufacturing Now

South Africa and Africa more broadly  is at a decisive turning point in renewable energy. Demand is accelerating, policy support is strengthening, and global capital is flowing into the continent’s energy transition.

But behind this momentum lies an uncomfortable truth:
Africa still imports the overwhelming majority of its solar panels exporting jobs, technology, skills and industrial value in the process.

Solar Growth Empowerment (SGE) is being built to change that not through slogans, but through a concrete manufacturing strategy, a clear capex and scale-up plan, and a transformation-first ownership model.

1. A Fast-Growing Market Still Built on Imports

South Africa is now one of Africa’s largest solar markets, with multiple gigawatts added in recent years. Solar has rapidly become the preferred technology across:

• Utility-scale generation

• Mining and heavy industry

• Commercial and industrial rooftops

• Residential installations

• Private PPAs and embedded generation

Yet, despite the sustained growth, the majority of panels are still imported, representing tens of billions of rand in lost industrial opportunity over the next decade.

Local manufacturers currently meet only a small portion of demand leaving a structural gap foreign suppliers continue to dominate.

Additional drivers reinforcing long-term demand include:

• The Renewable Energy Masterplan targeting several GW of new solar annually

• Corporate and mining-sector energy strategies shifting toward self-generation

• Tariff pressures and grid constraints accelerating private investment

• Rapid expansion of data centres, logistics hubs, and industrial parks

The conclusion is clear:
Demand is real, bankable and expanding yet the industrial base required to support it from within South Africa remains extremely thin.

2. Competing With Global Giants: A Reality Check

Solar manufacturing is intensely competitive. Global giants particularly in Asia operate at massive scale, enjoy integrated supply chains, and benefit from ultra-low production costs.

Module prices have fallen sharply. This benefits developers, but places tremendous pressure on smaller manufacturers trying to compete purely on price.

SGE’s position is explicit and intentional:

• We are not trying to be the cheapest panel in the world.

• We are building the most strategically valuable local partner in the region.

Our competitive edge is not a race to the bottom it is built on service, reliability, transformation, local content, and reduced execution risk.

3. Why Local Manufacturing Still Makes Strategic Sense

Even with global price competition, South African and regional customers face significant pain points imports simply cannot solve:

Lead Time & Working Capital

Imports often take 8–12 weeks from purchase order to delivery.
This ties up cash, delays projects, and increases financing costs.

Local production enables:

• Faster delivery cycles

• Lower stockholding requirements

• Improved cash-flow management

Local Content & B-BBEE

Mining houses, IPPs and public-sector programmes have stringent localisation and transformation expectations.

For many projects, local content and B-BBEE are non-negotiable, making a:

• Level 1–2

• Black women-led

• Job-creating

manufacturer a strategic enabler for developers and EPCs.

After-Sales & Warranty Management

When there is a performance issue or warranty claim, waiting weeks for offshore support is not viable.

Local manufacturing enables:

• Faster technical support

• In-country spare stock

• Better long-term performance monitoring

FX & Policy Risk

Buying in rand from a domestic manufacturer reduces exposure to currency volatility, stabilising project economics.

These advantages don’t eliminate the global price gap but they meaningfully reduce the total project cost and execution risk over a 25-year lifecycle.

4. SGE Phase 1: Building the Platform

SGE’s first manufacturing phase is designed to be bankable, scalable and nationally strategic large enough to influence the market, yet focused enough to execute with discipline.

Phase 1 Highlights

• Initial Capacity: Built to serve utility-scale, C&I, mining and public-sector demand

• Roadmap: Scalable pathway to 2 GW+ annual capacity

• Estimated Capex: ~R800 million, aligned to global turnkey benchmarks

• Jobs: ±450 direct jobs at full operations

• Technology: High-efficiency mono-PERC / TOPCon modules meeting global standards

• Partnership Model: Collaboration with proven equipment and technology partners

• Ownership: Retaining South African, black women-led control of the platform

SGE is structured not as a standalone project, but as the anchor of a green-industrial ecosystem, with future phases expanding further into the solar value chain.

5. The Regional Play: SADC, AfCFTA and Beyond

Africa’s renewable build-out is accelerating, yet most countries remain dependent on imported solar equipment.

SGE’s regional strategy positions South Africa as a gateway manufacturer for the continent.

Regional Advantages

• Faster delivery to SADC markets

• Reduced working capital strain for customers

• Alignment with SADC and AfCFTA value-add rules

• Export competitiveness supported by regional trade frameworks

The mission:
Keep more of Africa’s energy-transition value on the continent in the form of jobs, manufacturing capability, technology transfer, and tax revenue.

6. What This Means for Investors and Strategic Partners

For investors, lenders and offtakers, SGE offers a differentiated opportunity:

• Exposure to a high-growth, policy-supported market

• A manufacturing platform built on governance, quality and ESG principles

• A black women-led industrial champion aligned with national transformation priorities

• A credible roadmap for scale and vertical integration over time

SGE is realistic about the industry:
Solar manufacturing requires capital, scale and long-term commitment. Success hinges on disciplined execution and partnerships with investors who understand that competitive advantage extends far beyond price per watt.

7. SGE’s Strategic Commitment

SGE is being built for long-term impact. Our commitments include:

• Partnering with government, DFIs and private investors to localise more of the solar value chain

• Investing in skills development for youth and women

• Providing reliable, bankable products that help developers and corporates de-risk projects

• Supporting Africa’s just transition through local industrialisation

Africa’s solar boom is already underway. The policies are in place, pipelines are growing, and imports continue to surge.

The question for the next decade is simple:

Will Africa continue importing most of its solar future or manufacture it?

SGE’s answer is clear:
We are here to manufacture it.