China Dominates Africa’s Solar Imports as Investors Target Electricity Supply

China’s solar equipment exports to Africa continued expanding in 2026 even as shipments to the wider global market declined.

InfoLink Consulting reported that Chinese panel exports to African markets increased 31% between January and September, while worldwide shipments fell 12%. The figures show African demand growing against a broader decline in China’s overseas solar sales.

On October 29, the European Investment Bank announced financing of up to $90 million for the first phase of a $650 million solar and battery project in Upper Egypt.

Norwegian developer Scatec plans to supply electricity to the country’s largest aluminium producer under a long-term agreement.

The investment places a European-backed developer in the business of generating and selling electricity in a market heavily supplied with Chinese solar equipment.

Nigeria commercially launched a $300 million renewable energy fund in September to support mini-grids and standalone systems for households and businesses.

The financing targets electricity providers rather than solar panel manufacturers. Their revenues will depend on customer connections and electricity payments, while the equipment required for these projects remains a separate part of the solar market.

Chinese Solar Imports Tighten Competition Across African Markets

China shipped 1.56 gigawatts (GW) of solar panels to Africa in September 2026, up 72% from August but down 22% from a year earlier.

South Africa received 410 megawatts (MW), making it the largest African destination that month. Mauritania and Egypt imported 160 MW each, followed by Nigeria at 150 MW and Sudan at 140 MW.

Chinese manufacturer AIKO announced an agreement on October 9 to supply nearly 1.2 million solar panels for three Infinity Power projects in South Africa.

The plants have a combined planned capacity of 773.5 MW, with electricity expected to be sold to Eskom under 20-year agreements. AIKO’s contract covers equipment supply, while Infinity Power’s projects are intended to generate revenue from electricity sales. The value of AIKO’s agreement was not disclosed.

TOPCon solar modules averaged $0.114 per watt internationally in October. September shipping estimates put the average freight cost from Shanghai to eight African ports at $5,456 per 40-foot container.

These prices affect the cost of imported equipment, although they do not include all the expenses involved in delivering and installing panels.

Chinese suppliers are also exporting components for solar manufacturing. Shipments of solar cells to Africa reached 5.44 GW in September, including 3.45 GW destined for Kenya.

The cells require assembly into finished panels, leaving manufacturers that use them dependent on imported components even when production takes place within Africa.

African Solar Manufacturing Expands With Chinese Investment

Egypt’s EliTe Solar began production at a $115 million factory in January 2026, with annual capacity to manufacture 3 gigawatts (GW) of solar panels and 2 GW of solar cells.

Another $210 million project involving China’s JA Solar and regional investors is scheduled to begin production in early 2027. Both investments add manufacturing capacity in Egypt, with Chinese companies participating in the country’s solar equipment industry.

In Nigeria, Lagos-based LPV Technologies produces approximately 180,000 solar panels annually. Its 550-watt panels sell to wholesalers for around ₦150,000, comparable to the retail price of some imported alternatives.

Climate Home News reported that the company uses as many as 17 imported components, making its manufacturing costs sensitive to overseas prices and exchange rates.

Tanzania’s Tanzol has reportedly invested $300 million in the first phase of its Kibaha solar factory. An official from the country’s special economic zone confirmed in May that operations had begun, although the facility’s production capacity and actual output have not been independently established.

Manufacturers planning to export solar equipment to the United States face new trade requirements. From December 4, covered solar modules will be subject to a minimum import price of $0.38 per watt, alongside a 15% tariff on specified downstream products.

The measures include documentation requirements and exemptions for qualifying contracts signed earlier. Their application will affect the terms under which African factories can sell covered products to American buyers.

Solar Power Suppliers Secure New Revenue Contracts Across Africa

CrossBoundary Energy began supplying electricity to a copper mine in the Democratic Republic of Congo in August 2026.

The project combines 233 megawatts (MW) of solar generation capacity with battery storage and is designed to deliver 30 MW of continuous power under a long-term agreement.

The mine provides a contracted customer for the electricity, although the agreement’s financial terms have not been disclosed.

In Nigeria, the International Finance Corporation and Norfund announced financing of up to $83.2 million in April for five electricity companies.

Their projects aim to connect nearly 500,000 homes and businesses, with revenue expected from customers purchasing electricity or related energy services once the systems are operating.

GOGLA reported that off-grid solar companies raised $315 million in 2025, down from a wider pool of 97 funded companies to 57. Nearly half the investment was denominated in local currencies.

The figures show financing reaching fewer businesses, although the total does not establish how much individual companies earned from electricity sales.

The African Development Bank proposed a $300 million financing facility in September to help solar providers raise capital against future customer payments.

The proposed structure includes $120 million in development finance debt. Companies participating in the facility would use expected receivables to support financing, subject to approval and the final terms of the arrangement.

The World Bank reported in October that only one-third of households without electricity could afford a basic solar system through instalment payments.

That limits the potential customer base for providers relying on household repayments, even as financing becomes available for additional installations.

Africa’s Solar Expansion Draws Investment Into Electricity Supply

China’s StarTimes Smart Energy has secured backing from the International Finance Corporation for a loan of up to $20 million to develop solar mini-grids in Nigeria.

The company plans to build 95 systems serving 131,076 customers by 2028. The investment would give the Chinese company a role in selling electricity directly to Nigerian consumers, extending its involvement beyond the supply of solar equipment.

In Côte d’Ivoire, Africa Via, AXIAN and their partners announced financing in October for a 50-megawatt (MW) solar plant. Dutch development lender FMO is expected to provide up to €55.5 million.

The project has a 25-year electricity purchase agreement with the national utility, establishing a buyer for its planned generation.

Globeleq has reached financial close on a 40 MW solar project in Zambia, supported by $52.1 million from development lenders. The company will own and operate the facility under a long-term electricity sales agreement with ZESCO.

These investments place Chinese and other international companies in Africa’s electricity supply business, where project earnings depend on completed construction, power delivered and customer payments.

Chinese manufacturers retain their dominant position in imported solar equipment, while developers securing electricity contracts are establishing a separate source of future revenue.