Due to the growing demand in the agricultural sector, the solar water pump systems market revenue in Africa is projected to grow at a compound annual growth rate of 20% from 2018 to 2024, and Morocco is undoubtedly one of the markets that Chinese solar pump manufacturers should prioritize. Recently, the Finance Committee of the Moroccan House of Representatives passed 56 amendments to the 2019 Finance Bill. In addition to levying high consumption taxes on high-sugar soft drinks and tobacco, the amendments specifically stated that value-added tax would be exempted from sales of solar pumps used in the agricultural sector. This means the Moroccan government has “greenlighted” the solar pump market.
The Moroccan government plans to invest $233 million in solar projects to serve agricultural growth, and expects a large number of pumps to be installed in Morocco over the next few years. Looking at 2017 data, Morocco accounted for the largest market share of solar water pump revenue in Africa, followed by Ethiopia.
In 2017, low power (up to 3HP) AC submersible solar pumps were most widely installed across Africa, with most pumps used for agricultural irrigation.
In recent years, the African solar pump market has seen significant growth in new installations, mainly due to the decline in photovoltaic cell prices and government subsidies over the past few years.
Relaxed financing channels provided by NGOs and government banks have boosted the confidence of smallholder farmers, supporting the growth of the African solar pump market. In Morocco, the NAMA project supports the installation of solar pumps for agricultural use.
Furthermore, the rising diesel prices and insufficient electricity supply in the agricultural sector will allow low capacity DC motor submersible pumps to account for a major share of the African market.
