The growth of Chinese solar panel manufacturing in Africa is gaining momentum, with several factories being set up in countries such as Ethiopia, Kenya, Egypt, Ghana, and Nigeria. These factories are primarily located in export-processing zones or special economic zones linked to Chinese investments and infrastructure projects. The African continent offers lower labor costs, improved logistics, and relatively lenient regulations on export markets. Ethiopia, in particular, has become a hub for solar panel production, with several Chinese manufacturers setting up operations in the country's industrial zones.
However, this expansion is facing challenges from the United States, which has imposed tariffs on solar panels imported from China. The US Customs and Border Protection (CBP) has reported a significant increase in seizures of solar panels from Ethiopia, citing concerns over forced labor. The Uyghur Forced Labor Prevention Act has led to increased scrutiny of solar panels imported from Ethiopia, with many containing cells manufactured in the country. This has resulted in a significant increase in seizures, with products containing Ethiopian-made cells accounting for over two-thirds of the value of solar panel imports seized in the first two months of 2026.
The situation has been further complicated by a request from US solar panel manufacturers to investigate shipments of solar panels from Ethiopia, which they suspect may be circumventing US tariffs on Chinese-made products. This development could potentially slow down the growth of China's solar panel manufacturing in Africa, which has been gaining momentum in recent years. Despite these challenges, experts believe that the growth of solar panel manufacturing in Africa is likely to continue, driven by the continent's growing demand for renewable energy and the need to reduce reliance on imported energy.
Johnstone Chikwanda, a Zambian mechanical engineer and energy expert, believes that local production of solar panels in Africa would reduce project timelines and eliminate logistical headaches. He argues that African companies should develop their own technology, either independently or in partnership with Chinese companies. According to Chikwanda, local production would also help to reduce costs, as transportation costs would be eliminated. He notes that while Chinese companies have an advantage in terms of scale and technology, African companies can compete on price if they manufacture locally.
The Hawassa Industrial Park in Ethiopia is home to at least three Chinese solar panel manufacturers, including Toyo Solar, which launched pilot production in early 2025. The company has invested $60 million in the project and plans to increase production capacity to 4 gigawatts of solar panels. Other investors, including those based in Singapore, are also supporting solar panel manufacturing projects in Ethiopia. Canadian Solar, a leading solar panel manufacturer, has also set up operations in the country, with a planned production capacity of 4.2 gigawatts.
Egypt is also emerging as a major destination for Chinese investments in solar panel manufacturing, particularly in the Suez Canal Economic Zone. JA Solar, a Chinese company, is developing a large-scale production facility for solar cells and modules, primarily for the European and Middle Eastern markets. Other Chinese companies, including ET Solar and JetSolar, are also setting up manufacturing operations in Egypt. Kenya, Ghana, and Nigeria are also seeing growth in solar panel manufacturing and assembly activities.
Despite the challenges posed by US tariffs and trade tensions, experts believe that the growth of solar panel manufacturing in Africa is likely to continue. The continent's growing demand for renewable energy, combined with the need to reduce reliance on imported energy, is driving the growth of local manufacturing. As African countries continue to develop their manufacturing capabilities, they are likely to play an increasingly important role in the global solar panel market.
Key points
- The growth of Chinese solar panel manufacturing in Africa is facing challenges from US tariffs and trade tensions.
- Ethiopia has become a hub for solar panel production, with several Chinese manufacturers setting up operations in the country's industrial zones.
- Local production of solar panels in Africa could help reduce project timelines and eliminate logistical headaches.
