By Abdullahi Lukman
The United Nations Development Programme (UNDP) has called on African countries to invest in local manufacturing, innovation and recycling industries to strengthen their participation in the global renewable energy transition and retain more of its economic benefits.
Riyad Mehdeb of the UNDP made the call during a virtual Pan-African policy conference organised by Warwick Business School and the Circular Economy Powered Renewable Energy Centre (CEPREC).
He warned that Africa risked remaining a supplier of raw materials for the global energy transition while relying heavily on imported technologies to meet its domestic renewable energy needs.
According to Mehdeb, approximately 94 per cent of solar panels installed across Africa are imported from China, while much of the continent’s growing manufacturing capacity is directed towards export markets.
He disclosed that Africa spent about $2.4 billion on solar panel imports in the 12 months to June, raising concerns about the amount of economic value retained locally from renewable energy investments.
Mehdeb argued that African countries must move beyond exporting critical minerals and begin manufacturing, maintaining, repairing and recycling the technologies required for clean energy development.
He said strengthening local value chains would help retain skills, finance, technology, energy and materials within the continent, creating opportunities for industrial growth and employment.
Speaking under the theme, “Turning the Lights On: Unlocking Circular Value Chains for Africa’s Renewable Energy Transition,” the conference brought together academics, policymakers and government representatives to examine ways of increasing Africa’s economic participation in the renewable energy sector.
Mehdeb also highlighted opportunities to combine renewable energy with artificial intelligence (AI), noting that affordable solar electricity could support digital infrastructure, technological innovation and the development of AI solutions tailored to African needs, including local languages.
He further noted that Africa possesses approximately 60 per cent of the world’s solar resources but continues to attract a relatively small share of global energy investment.
According to him, developing local production and circular value chains would enable African countries to benefit from the growing demand for solar panels, batteries and other clean-energy technologies.
He also challenged perceptions about investment risks on the continent, citing an estimated two per cent default rate on African infrastructure loans as evidence that financing risks could be overstated.
Giuliana Battisti, Co-Director of CEPREC and Professor of the Economics of Innovation at Warwick Business School, said Africa needed to strengthen its capacity for energy generation and develop indigenous technologies rather than depend on foreign suppliers.
She called for consistent government policies to support research institutions, establish centres of excellence, attract skilled Africans living abroad and provide financial support for turning innovative ideas into commercially viable products.
Battisti also identified the circular economy as an opportunity for African countries to develop new industries through the production of materials, improved resource utilisation and technological innovation.
She maintained that the continent could build distinctive industrial capabilities by using its existing resources and workforce to move higher up the global value chain.
Similarly, Aslem Marungu, Namibia’s Deputy Minister of Environment, Forestry and Tourism, said African countries must become active participants in creating, recovering and benefiting from the value chains that support renewable energy technologies, rather than limiting themselves to consuming imported products.
Diana Dalton, Deputy High Commissioner in Kenya, also stressed the importance of appropriate investments and supportive policies in positioning African countries as leaders in circular innovation, sustainable manufacturing and green industrial development.
Participants further emphasised the need to establish industries for repairing, refurbishing, reusing and recycling solar panels, batteries and electronic equipment as they reach the end of their useful lives.
The conference concluded with calls for African governments to integrate renewable energy development into their industrial policies, while prioritising skills development, research, innovation and circular economy strategies to ensure the continent captures greater economic value from the global transition to clean energy.
