{"id":415389,"date":"2026-05-07T00:51:21","date_gmt":"2026-05-07T00:51:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/415389\/"},"modified":"2026-05-07T00:51:21","modified_gmt":"2026-05-07T00:51:21","slug":"rising-diesel-costs-push-africas-telecom-giants-toward-solar-power-despite-chinas-plan-to-end-export-incentives","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/415389\/","title":{"rendered":"Rising diesel costs push Africa\u2019s telecom giants toward solar power despite China\u2019s plan to end export incentives"},"content":{"rendered":"<p>&#13;<br \/>\n        The shift comes despite China\u2019s plan to end tax rebates on solar panel exports, a move analysts say could increase costs for African buyers as escalating Middle East tensions continue to pressure global energy markets.&#13;\n    <\/p>\n<p>&#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                                &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n        Diesel costs pressure telecom operators&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n                                                &#13;<br \/>\n                                            &#13;\n                                        <\/p>\n<p>&#13;<br \/>\n        According to data from Mordor Intelligence, grid and diesel hybrid systems accounted for 73.9% of Africa\u2019s telecom tower market share in 2025, reflecting the sector\u2019s continued dependence on fossil fuels. &#13;\n    <\/p>\n<p>&#13;<br \/>\n        Diesel logistics also account for as much as 40% of operating expenses at remote tower sites.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        The challenge is especially severe across Africa\u2019s estimated 500,000 telecom towers, many located in rural and off-grid areas where diesel generators remain the main source of power.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        The strain has intensified as tensions involving the US, Israel and Iran disrupt global energy markets and push up diesel costs.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        At the same time, rising electricity tariffs from major regional and local power utility companies are driving more businesses toward renewable energy as companies seek cheaper and more reliable power sources.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        <a href=\"https:\/\/www.mordorintelligence.com\/industry-reports\/africa-telecom-towers-and-allied-markets\" id=\"40302369-f6ec-49ef-9feb-91580aaf2ed7\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">Mordor Intelligence<\/a> projects renewable-powered telecom sites will expand at an 11.68% compound annual growth rate through 2031, with the market potentially exceeding $694 million if retrofit targets are achieved.&#13;\n    <\/p>\n<p>                &#13;<br \/>\n                &#13;<br \/>\n                    &#13;<br \/>\n                        &#13;<br \/>\n                    &#13;<br \/>\n&#13;<br \/>\n                    <img width=\"790\" height=\"574\" alt=\"Zimbabwe to begin construction of 600MW floating solar plant project next year\" title=\"Zimbabwe to begin construction of 600MW floating solar plant project next year\" class=\"image lazyloaded imgWithMetaData\" src=\"data:image\/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'790'%20height%3D'574'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E\" data-original=\"https:\/\/ocdn.eu\/pulscms-transforms\/1\/zCwktkqTURBXy85MDc0MWNlMDc5ZGRhNTAyYWVhMjQyN2NjZjFiOTBlMS5qcGVnkZUCzQMWzQI-wsM\" fetchpriority=\"low\" decoding=\"async\" loading=\"lazy\"\/> &#13;<\/p>\n<p>&#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                                &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n        Telecom operators accelerate solar investments&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n                                                &#13;<br \/>\n                                            &#13;\n                                        <\/p>\n<p>&#13;<br \/>\n        Major telecom operators across Africa are accelerating investments in solar infrastructure as rising fuel and electricity costs increase pressure on network operations.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Vodacom Group said energy costs rose 5% to $300 million in 2025 because of higher electricity tariffs and fuel prices, while Safaricom raised $153.6 million through green bonds partly to support telecom tower solarisation projects.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        According to the Associated Press, Atlas Tower Kenya recently announced a $52.5 million investment to construct 300 solar-powered telecom towers serving operators including Safaricom, Airtel Africa and Telkom Kenya. The company said 82% of its existing 500 towers are already solar powered.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Some African telecom firms began moving into renewable energy years earlier. In 2018, Econet Wireless Zimbabwe committed more than $250 million to solar energy projects after securing a licence to construct and operate a solar plant at its Willovale site in Harare.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Operators are also beginning to record savings from the transition. MTN Group operations in South Sudan reportedly reduced fuel spending by about 30% after deploying solar systems, while Airtel Africa and ENGIE Energy Access cut diesel use by more than half at sites in Zambia and Congo.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        IHS Towers said its Project Green initiative generated annual savings of about $49 million, strengthening the business case for renewable energy adoption across telecom networks.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Investor appetite for renewable infrastructure is also growing. Mauritius-based CrossBoundary Energy recently secured a $40 million investment to expand renewable energy projects across sub-Saharan Africa, while GreenWish Partners earmarked about $800 million for solar-powered telecom tower projects across the continent.&#13;\n    <\/p>\n<p>&#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                                &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n        China\u2019s export policy raises fresh concerns&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n                                                &#13;<br \/>\n                                            &#13;\n                                        <\/p>\n<p>&#13;<br \/>\n        The transition, however, still leaves Africa heavily reliant on imported solar equipment from China, which dominates global panel manufacturing.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        A<a href=\"https:\/\/africa.businessinsider.com\/local\/markets\/china-set-to-cut-solar-incentives-for-africa-days-after-elon-musk-negotiates\/2q7z7m3\" id=\"6f78a728-a615-442e-a9bc-8a9c77fc2d8a\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\"> recent report<\/a> said Beijing plans to end value-added tax rebates on solar panel exports and phase out incentives for battery storage equipment, moves analysts say could raise costs for African buyers.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        According to the South China Morning Post, Chinese solar exports surged to a record high in March following the announcement, as buyers rushed to secure supplies before the policy changes take effect. &#13;\n    <\/p>\n<p>&#13;<br \/>\n        Africa recorded a 176% month-on-month jump in imports, driven largely by demand from Nigeria, Kenya and Ethiopia.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        The report added that Chinese exports of solar products, batteries and electric vehicles rose 70% year on year to $21.9 billion in March, underlining the country\u2019s dominance in global clean energy supply chains despite Middle East-related trade disruptions.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Nonetheless, African countries are expanding local manufacturing capacity. Nigeria attracted about $425 million in investment in 2025 for eight renewable energy manufacturing facilities, while Globeleq is developing a $315 million solar-battery plant in Zambia.&#13;\n    <\/p>\n","protected":false},"excerpt":{"rendered":"&#13; The shift comes despite China\u2019s plan to end tax rebates on solar panel exports, a move analysts&hellip;\n","protected":false},"author":2,"featured_media":415390,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-415389","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/415389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=415389"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/415389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/415390"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=415389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=415389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=415389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}