By Advocate Mtho Xulu, Chair: SA BRICS Business Council Trade & Investment Working Group
South Africa stands at a pivotal point, with a need to maintain a reliable supply of electricity. Our solar industry has matured from being a niche solution to an essential pillar of our energy security strategy. If we are to seize the full promise of this transformation, our regulatory frameworks, trade policies, and investment strategies must evolve with equal urgency. The BRICS platform gives us a unique opportunity to harmonise efforts, deepen industrial development, and build resilience across supply chains.
Smart regulation for a competitive edge
The solar value chain cannot thrive without regulatory clarity. South African solar PV players are calling for smart regulation of critical input materials such as those used in battery storage.
This is not about bureaucracy for its own sake but about creating certainty for investors while incentivising downstream manufacturing. Export controls for critical raw materials are often raised as a tool to protect the domestic supply. While the logic is clear, we must also acknowledge the risks. If introduced in an uncoordinated or abrupt manner, such measures could undermine export competitiveness and raise input costs for local processors.
A phased, carefully designed approach is therefore essential. The goal is not simply to secure local resources but to build the confidence and capacity of manufacturers to compete globally.
Cross-Border collaboration: BRICS as a catalyst
Globally, the economics of solar PV have shifted dramatically. Between 2010 and 2020, the installed cost of utility-scale projects fell by 81 percent, while the levelized cost of energy dropped by 85 percent.
This progress has been driven largely by East Asia, particularly China, whose scale and efficiency now anchor global supply chains.
Africa is on track to expand solar capacity nearly eightfold, from 10 GW in 2020 to 79 GW by 2040. This growth trajectory creates a natural opportunity for South Africa to leverage both our own industrial capacity and the manufacturing prowess of fellow BRICS members.
With free trade agreements opening African markets and BRICS partnerships expanding, we can position ourselves as a continental hub for clean energy solutions.
Financing innovation for broader inclusion
Industrial development must be matched with innovative financing models to ensure that households and small businesses can benefit from the energy transition.
Through the South African Renewable Energy Masterplan (SAREM), we are advocating for measures such as quarterly publication of procurement pipelines, consistent local content targets, reactivation of tax incentives, and the establishment of a Transformation Fund to support new entrants in the value chain.
These measures are not abstract; they are tools to democratize access. By lowering barriers to entry, we ensure that women-owned firms, small manufacturers, and township-based enterprises also have a stake in this industry.
Building regional value chains
South Africa already boasts over 50 upstream manufacturers, nearly 750 midstream firms employing around 17,000 people, and growing downstream demand across residential, commercial, and mining sectors. This robust base positions us to extend our capabilities into BRICS markets.
The mining sector’s rapid uptake of solar power, catalysed by recent regulatory changes, is a case in point. What started as a response to Eskom’s load shedding has evolved into a competitive advantage.
With the right support, South African firms can export not only solar components but also expertise in design, installation, and project management.
Standards and skills for a global market
If the South African solar industry is to compete internationally, quality must be non-negotiable. Certification of modules and production lines by accredited institutions, robust warranties, and partnerships with global OEMs are critical enablers.
At the same time, regional collaboration within BRICS countries, through shared training programmes, harmonised standards, and favourable production incentives, can accelerate cost competitiveness.
Our localisation study recommends reducing the price gap between locally manufactured and imported modules by at least 15 percent. With coordinated support, this is achievable.
Beyond price, it is skills development that will define our long-term success. Shared training initiatives with BRICS partners can create a generation of technicians, engineers, and entrepreneurs ready to power Africa’s energy future.
A call to action
The story of solar in South Africa is about more than megawatts. It is about reimagining trade, deepening industrial development, and expanding opportunity across our economy.
By aligning smart regulation with forward-looking trade policies, harnessing BRICS collaboration, and ensuring inclusion at every level, we can turn the promise of solar into a driver of industrialisation, regional integration, and shared prosperity.
The sun is rising on Africa’s clean energy revolution. Let us ensure South Africa is not just a participant, but a leader.
Advocate Mtho Xulu is the current President of the South African Chamber of Commerce and Industry (SACCI) and a national business leader, entrepreneur, and legal professional.
www.sabricsbusinesscouncil.co.za
