State of South African Manufacturing, its potential and resources required for further development of PV Value Chains

Keywords: Solar PV value chain, localisation, employment, solar energy, decarbonization, manufacturing, public policy, private investment | Study published: May 2024

This study provides an updated analysis of the South African solar photovoltaic (PV) manufacturing value chain, emphasizing opportunities for localization and integration with the European market. Building on previous research, the study explores the solar PV sector's potential to enhance domestic manufacturing, create jobs, and contribute to decarbonization goals. With South Africa's abundant natural resources, including silica, the study identifies pathways for processing and incorporating these into the solar PV value chain. The research examines the challenges of policy uncertainty, skills shortages, and limited economies of scale while proposing practical policy measures. By integrating South African and European value chains, this initiative supports global solar supply chain diversification, addressing the pressing triple challenge of poverty, inequality, and unemployment. Furthermore, it highlights the potential for fostering EU partnerships to build a resilient solar PV manufacturing industry aligned with climate goals.

South Africa's solar PV sector holds immense potential for localization and export, leveraging its abundant resources and strategic EU partnerships to decarbonize, create jobs, and reduce dependency on fossil fuels.