The Mission Efficiency Marketplace is a new platform for fostering a thriving ecosystem of energy efficiency projects within target countries, including Ghana. Through regular virtual and in-person workshops, government representatives, financial institutions, industry, and other stakeholders can exchange knowledge and brainstorm solutions to common barriers. Together, they discuss the actions needed to deploy new investments into best-in-class efficiency projects.

In Ghana, the marketplace has already unlocked financing for e-mobility company Solar Taxi, by linking them to Sunref – a green financing programme. Solar Taxi increased its fleet from 0 to over 1000 electric bikes with the help of Sunref financing, and they are now adding e-buses.  

The event in Accra showcased real-world examples like Solar Taxi and Sunref, along with strategies from partners on how to finance energy efficiency projects, including Ghana's Energy Transition Investment Plan, which emphasizes energy efficiency and sustainable cooling as key parts of reaching clean energy goals.

Barbara White Nkoala, Country Director, SNV noted that the Mission Efficiency Marketplace is a valuable platform for identifying bankable cooling and energy efficiency projects for commercial financing.  

"Two key things are needed to unlock the potential of sustainable cooling in Ghana," said Eunice Biritiwum, Associate Director at Deloitte. "First, we need dedicated, low-interest funding to support pilot projects. These projects can demonstrate the real-world impact of making sustainable cooling solutions accessible to everyone. Second, raising awareness is crucial. We need to get the word out about the investment opportunities in energy efficiency, so more people can get involved."

Hubert Zan, Assistant Manager for Energy Efficiency at the Energy Commission of Ghana, hailed the Mission Efficiency Marketplace for its convening power, saying, “In Ghana, the Mission Efficiency Marketplace is a valuable platform as it fosters a dynamic environment that encourages broader participation from financiers, driven by research data and community engagement. Enhanced engagement with communities is important in scale these solutions and ensuring buy-in from all stakeholders.”

The Marketplace will be organized quarterly with follow ups on project progress in terms of gaining support for scale up. Funders will be invited to the marketplace to get current information on projects and technical support for them.

In the electric mobility sector, favourable fiscal incentives for knocked-down kits are driving the expansion of local assembly in many countries, including Ethiopia, Ghana, Kenya and Rwanda. In South Africa, as part of the Renewable Energy Master Plan (SAREP), tax incentives for both greenfield and brownfield manufacturing in renewable energy value chains is being pursued, with public demand serving as an anchor.  

In Africa, while local manufacturing of solar PV, batteries and electric vehicles is limited to a great extent to assembly, the focus of industrial policy should be on deepening supply chains. Kenya’s recently launched draft e-mobility policy positions local manufacturing as a key objective with a local content requirement phased over time.

“There is a big focus on electric vehicle assembly in Kenya because that supply chain is already there, but the real win is beginning to create incentives for local component manufacturing of electric power train, battery packs, electric motors, power electronics,” highlighted Jit Bhattacharya, CEO of BasiGo, which established the first local electric bus assembly line in Kenya.  

Designing and implementing an enabling industry policy framework

An industrial policy framework must embody a whole-of-a-systems approach, offering a long-term roadmap for the renewable energy sector based on extensive consultations and data. It should consider what is economically and technically feasible, and where comparative advantages lie in a rapidly evolving sector.

Pulipaka added, “In a competitive environment, the domestic industry must innovate to build a value proposition. The Indian government is ensuring incentives are directed at high efficiency modules manufacturing capacity rather than outdated technology. Industry consultation is crucial to calibrate policy design.”

The South African Renewable Energy Master Plan serves as an example of a long-term industrial policy framework for the sector. Reflecting on the design and implementation process, Gaylor Montmasson-Clair, Senior Economist, Trade & Industrial Policy Strategies and Facilitator, SAREP added, “Co-creation and co-ownership is crucial involving government, industry and labour. To drive implementation, it is critical to have a dedicated, independent, well-resourced and empowered body.”  

Experts also emphasized the need for early-stage support to industry as firm capabilities build up, and the local ecosystem involving demand, supply chains, testing, research and development and skills develops. Governments can also take proactive steps to reduce input costs, including access to reliable and affordable electricity supply and concessional financing.

Proactively building a green manufacturing workforce

While the renewables manufacturing sector is still in nascent stages in many countries, the skills gap can quickly become a constraint. Technical and vocational training institutes must integrate curricula related to manufacturing roles that complement theory with practical training for new students as well as upskilling existing workforce. There is a significant opportunity to facilitate collaboration across the Global South training institutions on curriculum design and delivery.  

Jit Bhattacharya noted, “In the case of e-mobility, whether buses or bikes, where the gap exists is with skills relevant to electric powertrain which is much more in the realm of computer/electronics manufacturing than mechanical engineering. We absolutely need to build human capacity on both manufacturing lines and in the operations serving the vehicle fleets that are out in the market.” Skills gaps are not limited to technical skills alone – new generation enterprises require continuing upskilling across areas, including operations, business development, marketing and financing.  

Strengthening South-South cooperation

Across many African countries, it was noted that it is still cheaper to import finished goods from abroad, than to trade within the continent. Existing programmes, such as the Africa Continental Free Trade Agreement and regional economic communities, are necessary to better integrate markets and maximize economies of scale.

Drawing on India’s experience, Pulipaka noted, “The Production Linked Incentive scheme demonstrated that economies of scale makes local industry more competitive. For example, any polysilicon manufacturing less than 10 GW is not viable and by ensuring sufficient scale at each segment of the value chain, you also ensure that your final product (module) is competitive.”  

South-South cooperation can also be leveraged to bridge other gaps in the manufacturing ecosystem, including policy design, investments, technology access and skills building.

Zira John Quaghe, Country Manager – Nigeria, African Climate Foundation noted, “Better knowledge exchange is crucial. Learnings from countries that are further along in their renewable energy value chain development and just transition journey should be shared with other Global South countries, alongside efforts to address issues of trade reforms.“ Based on the experiences shared, it was evident that policies profoundly shape markets irrespective of geography. Thus, it is imperative to be intentional about deploying multiple levers of industrial policy design, and implementing them simultaneously to support renewable energy manufacturing and scaling it up across Africa.  

The recording of the webinar can be accessed here. The next webinar in the series will take place in May 2024. Please sign up here to the Africa REMI mailing list for updates.  

Africa REMI is supported by partners, including Bloomberg Philanthropies, ClimateWorks Foundation, African Climate Foundation and CREIA.