10% duty on solar imports

Market share declines due to competition from cheap foreign products.

- Amanda Visser

The only remaining solar panel manufacturer in South Africa has received protection from low-priced imports, mainly from China. The International Trade Administration Commission (Itac) introduced a 10% general import duty to protect manufacturers, attract new investments and encourage the deepening of the input value chain.

But the protection came seven years after ARTsolar, the only remaining manufacturer, applied for the 10% duty to stem the inflow of cheaper products.

Several other solar panel and supply chain manufacturers have since closed their doors. The import duty will be reviewed after three years to assess the industry's performance.

Itac says that in making its decision, it factored in rising electricity tariffs, the fact that the local photovoltaic module (solar panel) industry is still in its infancy, that many manufacturers have already shut down due to strong competition from low-priced imports, a significant decline in market share, and worsening profitability in the local market.

United Nations report