Localizing the solar value chain in Kenya?

Elder Davy, Ulrich E. Hansen and Ivan Nygaard

Innovation and Development, 2024, vol. 14, issue 1, 217-240

Abstract: The debate on the benefits of renewable electrification in late industrializing economies has mostly focused on improved electricity access and climate mitigation arguments. The literature pays less attention to understanding the opportunities for sustainable industrialization. This paper contributes to the latter with insights from a case study of Solinc East Africa, a Kenyan solar module manufacturer that has remained in the market, despite intense competition from imports of low-cost solar panels. Drawing on in-depth fieldwork in the solar energy sector in Kenya, we apply a global value chain framework to explore how and why Solinc has been able to sustain its business. Our findings highlight the challenges of localizing solar manufacturing in Kenya and suggest it may only be possible in rare instances. Specifically, a unique combination of circumstances and factors were revealed that enabled Solinc to gain several advantages including (i) initial access to knowledge and materials from upstream linkages; (ii) downstream integration and partnerships with key distributors and customers; (iii) close proximity to customers; and (iv) provision of complementary and increasingly high value-added services. Our findings present a more positive perspective on the localization of related services, which we argue deserves more attention in the sustainable industrialization debate.

Date: 2024
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DOI: 10.1080/2157930X.2022.2121306

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