Thanks to growing demand in the agricultural sector, Africa’s solar pump systems market revenue is projected to grow at a CAGR of 20% from 2018 to 2024, with Morocco undoubtedly one of the key markets for Chinese solar pump manufacturers to prioritize.
Recently, Morocco’s House of Representatives Finance Committee approved 56 amendments to the 2019 Finance Bill. Besides increasing consumption taxes on high-sugar soft drinks and tobacco, the amendments specifically pointed out that sales of solar pumps used in the agricultural sector will be exempt from value-added tax. This signals that the Moroccan government has given the “green light” to the solar pump market.
The Moroccan government is expected to invest $233 million in solar projects to serve agricultural growth. It is estimated that Morocco will install a significant number of water pumps in the coming years. Based on 2017 data, Morocco had the largest revenue share in Africa’s solar pump market, followed by Ethiopia.
In 2017, low power (up to 3HP max) AC solar submersible pumps were most widely installed across Africa, with most pumps used for farmland irrigation.
In recent years, Africa’s solar pump market has seen substantial growth in new installations, mainly due to declines in photovoltaic panel pricing and government subsidies over the past few years.
Relaxed financing channels offered by NGOs and government banks have boosted small farmers’ confidence, supporting growth of the African solar pump market. In Morocco, the NAMA project provides support for installing solar pumps in the agricultural sector.
Moreover, due to rising diesel prices and insufficient electricity supply in the agricultural sector, low capacity DC motor submersible pumps will account for most of the African market share.
