Africa Leads Growth in Solar Energy as Demand Spreads Beyond Traditional Markets, Report Says 

Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
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Africa Leads Growth in Solar Energy as Demand Spreads Beyond Traditional Markets, Report Says 

Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)

Africa was the world’s fastest-growing solar market in 2025, defying a global slowdown and reshaping where the momentum in renewable energy is concentrated, according to an industry report released in late last month.

The report by the Africa Solar Industry Association says the continent's solar installed capacity expanded 17% in 2025, boosted by imports of Chinese-made solar panels. Global solar power capacity rose 23% in 2025 to 618 GW, slowing from a 44% increase in 2024.

“Chinese companies are the main drivers in Africa’s green transition,” said Cynthia Angweya-Muhati, acting CEO of the Kenya Renewable Energy Association. “They are aggressively investing in and building robust supply chains in Africa green energy ecosystem.”

Some of that capacity has yet to be rolled out. Africa has only 23.4 gigawatts peak (GWp) of working solar capacity even though nearly 64 GWp of solar equipment has been shipped to the continent since 2017. A gigawatt peak represents 1 billion watts of maximum, optimum power output under ideal conditions.

“Africa's growth is driven by changing policies and enabling conditions in a number of countries,” said John Van Zuylen, CEO of the Africa Solar Industry Association.

“Solar energy has moved beyond a handful of early adopters to become a broader continental priority,” he said recently on the sidelines of the Inter Solar Africa summit in Nairobi. “What we are seeing is not temporary. It is policies aligning with market dynamics.”

Historically, South Africa dominated solar imports in Africa, at one point accounting for roughly half of all panels shipped to the continent. The latest data show its share has slipped below a third as demand surged elsewhere. Last year, 20 African nations set new annual records for solar imports, as 25 countries imported a total of at least 100 megawatts of capacity.

Nigeria has overtaken Egypt as Africa's second-largest importer as solar energy and battery storage provide a practical and affordable alternative to diesel generators and unreliable grid power. In Algeria, solar imports soared more than 30-fold year-on-year. Imports also surged in Zambia and Botswana.

At least 23 African countries, including South Africa, Tunisia, Kenya, Chad and the Central African Republic, are now generating over 5% of their electricity from solar energy, the report said.

Prices have fallen both for solar panels and batteries, mostly from China, enabling households and businesses to rely on solar plus batteries for round-the-clock electricity, the report said. Battery storage costs in Africa fell to $112 per kilowatt-hour in 2025 from an average of $144 per kilowatt-hour in 2023 as improved technology made storage systems more flexible and longer lasting.

“This ever-decreasing price of storage has game-changing implications for Africa, which has a dire need for stable and baseload power,” said Van Zuyken.

The gradual removal of diesel subsidies in Nigeria in the past two years also has helped accelerate adoption of solar energy. The policy was implemented sector by sector to cushion its impact, making diesel increasingly expensive and nudging businesses and households toward solar. In September, Nigeria announced plans for a 1 GW solar panel factory, the largest in West Africa. Similar facilities are under construction in Egypt, South Africa and Ethiopia.

As Africa moves to build its own manufacturing capacity, the industry is looking to China to transfer knowhow to help alleviate Africa’s dependence on imported equipment and technology.

Jobs won't be confined to manufacturing.

“The solar jobs boom is occurring in services including installation, maintenance, distribution and financing, where thousands of small and medium enterprises are emerging to meet rising demand,” Van Zuylen said.

Unlike regions such as the Middle East, where governments publish clear 10 or 20-year energy roadmaps, many African markets lack consistent policy signals. So, uncertainty over policies remains a challenge. Solar firms operating across Africa say unpredictable tax regimes, shifting import duties and unclear long-term energy plans undermine investor confidence.

“The problem is not the opportunity. It’s visibility,” said Amos Wemanya, senior analyst on renewable energy at Powershift Africa. “If a government announces a plan, companies need to trust that it will remain in place.”



Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
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Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s main stock index (TASI) ended Sunday’s session up 0.1 percent to close at 11,122 points, with liquidity of about 3.6 billion riyals ($960 million).

Among leading stocks, Al Rajhi Bank rose 1 percent to 69.1 riyals, while SABIC gained 2 percent to 58.4 riyals.

Petro Rabigh topped the list of gainers, rising 10 percent to 12.65 riyals, following the company’s announcement of its first-quarter 2026 financial results.

In contrast, Saudi Aramco, the index’s heaviest-weighted stock, fell 0.22 percent to 27.16 riyals.

Shares of NADEC and Alawwal Bank declined 4 percent each, while Kingdom Holding Company fell 3 percent.

Ban topped the list of decliners, dropping 8 percent.


Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
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Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)

Saudi Arabia’s economy has surpassed the $1 trillion mark for the first time, expanding by 80 percent since the launch of Vision 2030, according to the Kingdom’s 2025 Vision 2030 report.

The milestone underscores the impact of fiscal reforms and diversification efforts aimed at reducing dependence on oil. Non-oil activities now account for 55 percent of the economy, up from 45 percent in 2016, while non-oil government revenues have risen more than 170 percent, from SAR185.7 billion ($49.5 billion) in 2016 to SAR505 billion ($134.6 billion) last year.

The report said the gains reflected investment in growth sectors, legal reforms and a more attractive business climate.

Fiscal discipline, rising liquidity

Saudi authorities noted that fiscal policy remained anchored in spending discipline and sustainability, with deficit targets ranging between 5 percent and 7 percent of gross domestic product.

Liquidity reached a record SAR3.167 trillion in 2025, up from about SAR1.799 trillion in 2016.

Officials said expansionary spending had been directed toward strategic sectors linked to economic growth and living standards.

Debt low, reserves rise

Despite higher spending, Saudi Arabia has maintained one of the lowest debt burdens in the G20, with public debt below 50 percent of GDP. Foreign reserves rose to SAR1.7 trillion ($453.3 billion), their highest level in five years.

Real GDP growth accelerated from 1.7 percent in 2016 to 4.5 percent last year, the report said.

Competitiveness gains

Saudi Arabia rose 15 places between 2021 and 2025 in the IMD World Competitiveness Yearbook to rank 17th globally, placing fourth among G20 countries last year.

The government introduced more than 1,000 reforms and 1,200 regulatory measures in recent years, including allowing full foreign ownership in most sectors and implementing a new bankruptcy law. The measures improved transparency, dispute resolution and legal certainty for investors.

Saudi Arabia has also expanded support for small and medium-sized enterprises through Monshaat, the SME Bank and Saudi Venture Capital Company.

The number of SMEs exceeded 1.7 million by the end of 2025, employing around 8.88 million people and contributing 22.9 percent to GDP. More than 474,000 businesses are owned by young Saudis, according to the report.

Growth outlook

The International Monetary Fund projects Saudi growth of 3.1 percent this year and 4.5 percent in 2027. The World Bank forecasts growth of 4.3 percent in 2026 and 4.4 percent next year.

The Organization for Economic Cooperation and Development (OECD) expects growth of 4 percent this year and 3.6 percent in 2027. For its part, Saudi Arabia’s Finance Ministry forecasts growth of 4.6 percent in 2026 and 3.7 percent next year.


Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)
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Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)

Saudi Arabia has chosen to rethink its relationship with its resources, asking a different question: How can we make what we have work to its fullest potential in a rapidly changing world?

This was the essence of Vision 2030, which saw valuable opportunities in diversifying energy sources and maximizing the value of oil and gas to achieve greater prosperity, keeping pace with global environmental changes.

The first clear sign of this shift was the renaming of the Ministry of Petroleum and Mineral Resources to the Ministry of Energy, a clear indication of expanding the horizon from oil and gas alone to a comprehensive energy system that includes renewables at its core.

A Naturally Qualified Land

This choice was not made without study. The Kingdom possesses geographical enablers that give it an exceptional competitive position: a climate conducive to successful solar energy projects, vast areas suitable for wind power projects, and geographical diversity that contributes to the development of hydrogen energy, all supported by accumulated investment capabilities and research expertise.

On this fertile ground, a series of initiatives and projects were launched: The National Renewable Energy Program, the Custodian of the Two Holy Mosques Renewable Energy Initiative, and the establishment of the National Renewable Energy Data Center, followed by solar and wind power projects aimed at enhancing electricity generation efficiency.

The results speak clearly: The production capacity for electricity generation from renewable sources increased from 3 gigawatts in 2020 to 46 gigawatts in 2025. The total number of projects related to this sector reached 64, distributed among 40 solar power projects, 9 wind power projects, and 15 energy storage projects.

Hydrogen: The Big Bet

At the heart of NEOM, an unparalleled project is being born: the green hydrogen project, the largest and first of its kind globally, with a production capacity of 600 tons of green hydrogen per day.

To support this direction, the first phase of the Yanbu Green Hydrogen Hub was launched, equipped with facilities for generating electricity from renewable sources, desalination plants, electrolysis units, facilities for converting hydrogen into green ammonia, and a dedicated export terminal.

The Battery Race

Figures in the energy storage sector are no less exciting; the Kingdom is approaching China in the global battery storage project cost race, with a cost of $409 per kilowatt for projects with a four-hour storage capacity, compared to $404 for China.

The total capacity of proposed energy storage projects reached 30 gigawatt-hours, while 8 gigawatt-hours have been connected to the electricity grid.

In a remarkable achievement, Aramco successfully operated the world's first renewable energy storage system to support gas well production operations, with a capacity of 1 megawatt-hour, capable of supporting 5 wells for 25 years.

This system relies on a Saudi patent and represents a reliable alternative to traditional solar energy solutions, offering high efficiency in harsh climatic conditions and intelligent response to changing energy needs.

SPARK... When Industry Becomes the Value

Vision 2030 recognized that production alone is no longer sufficient, and that true value lies in building industries, localizing supply chains, and enhancing local content. This is where the idea for King Salman Energy Park "SPARK" was born, with investments exceeding 12 billion Saudi Riyals (3.2 billion dollars) and involving more than 60 local and international investors.

SPARK is located in a strategic position close to energy sources, shipping, and export networks, and includes a dry port allowing faster access. So far, 7 factories have been opened, while another 14 are currently under construction.

Balance, Not Compromise

While the world moves towards transitioning to alternatives to oil and gas, the Kingdom adopts a different vision, believing that an accelerated transition could harm global security and growth, given that renewable energy alone cannot fully meet developmental needs.

Therefore, the Kingdom continues to invest in exploring and developing oil fields, most notably the development of the unconventional Jafurah field, the largest of its kind in the Middle East, which will contribute to maximizing the value chains of gas and petrochemical industries.

Thus, the Kingdom walks a fine line, balancing the preservation of global energy supplies with investment in technologies that eliminate carbon emissions, positioning itself today as a comprehensive energy hub and a model of prudent management.