Supply chain challenges and off-grid energy development: Insights from Southern and East Africa

The off-grid energy sector, comprising small scale decentralised renewable energy systems, plays a growing role in electrifying underserved communities in many parts of Africa. However, development of the off-grid energy sector has suffered from underlying supply chain challenges, limiting the realisation of off-grid electrification potential in multiple contexts. This article examines the critical supply chain issues through accounts of practical challenges encountered by off-grid energy developers and service providers in Ethiopia, Malawi, and Mozambique. Insights generated for this article were derived through open-ended interviews and consultations with off-grid energy stakeholders and the authors’ own experiences, corroborated with review of recent literature. The article discussed critical supply chain issues of locational dynamics; technological and financial challenges; and governance and regulatory issues hindering sustainable deployment and operation of off-grid energy projects through the account of three countries. It provides key recommendations to governments and stakeholders which include transforming import and customs procedures while strengthening transport infrastructure and intra-continental trade for off-grid energy components. The article suggests reduction in tariffs, high import duties and taxes on procurement of renewable energy components through a joined-up approach by public institutions aiming for long-term development. It emphasizes the need for collective action by African states to invest in local infrastructure and workforce upskilling by developing specialised hubs and production facilities, strengthening local enterprise and boosting local economies while limiting dependence on external suppliers for accelerated uptake of off-grid energy systems in Africa.