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 Can Renewable Energy Change the Economics of African Textile Manufacturing?

Can Renewable Energy Change the Economics of African Textile Manufacturing?

Energy is one of the most important variables in industrial competitiveness. Textile manufacturing requires electricity and, in many production stages, heat. Spinning, weaving, knitting, dyeing, finishing and garment production have different energy profiles, but all depend on reliable energy services to maintain productivity, product quality and delivery schedules.

Where electricity is expensive or unreliable, manufacturers may face higher operating costs, production interruptions and additional expenditure on backup generation. These constraints can weaken the commercial case for investment even where labour, raw materials or market access appear attractive. Renewable energy could help change this equation, but its contribution needs to be evaluated at the level of the actual factory and production process.

Solar photovoltaic systems, wind power where suitable, hydropower, biomass and other renewable-energy options may provide opportunities to reduce exposure to fossil fuels and improve energy security. The most appropriate solution will depend on local resources, grid conditions, the factory’s load profile, financing terms and the reliability requirements of its operations. For some factories, rooftop solar combined with the grid may reduce daytime electricity purchases. Others may require storage, improved grid connections or a hybrid system to maintain production during periods when renewable generation is insufficient. Thermal processes may require different solutions from those used for lighting, motors or electronic equipment.

Energy efficiency can also be essential: reducing consumption through efficient motors, heat recovery, process optimization and better maintenance may be more economical than simply adding generation capacity. This is especially important for dyeing and finishing, where heat and water requirements can be significant. Cleaner electricity can reduce emissions associated with electrical consumption, but it does not automatically eliminate emissions from boilers, process heat, chemicals or other parts of the production system. A credible transition requires an assessment of the factory’s full energy profile.

Africa’s renewable-energy resources provide a potentially important foundation. The International Renewable Energy Agency and the African Development Bank’s Renewable Energy Market Analysis: Africa and Its Regions identifies the potential for renewable energy to support energy access, economic development, employment and industrialisation, while also recognizing that the continent’s regions require different approaches.

For the CTA sector, the industrial implications extend beyond reducing emissions. More reliable and affordable energy can support longer production runs, reduce reliance on backup generation and improve the attractiveness of textile investments. Where renewable energy is combined with efficient machinery and competent operations, it may improve both environmental and commercial performance.

However, the economics cannot be assumed. Upfront investment, the cost of capital, currency exposure, import duties on equipment, technical maintenance, and grid rules can affect project viability. Small and medium-sized manufacturers may struggle to finance systems even when the long-term savings appear attractive. Shared energy infrastructure, industrial-park power systems, leasing models and blended finance may help address some of these barriers. This creates an opportunity to integrate energy planning into the development of textile clusters.

The transition also needs credible measurement. Manufacturers should assess energy consumption per unit of output, the share of energy supplied by renewable sources, production downtime, energy costs and emissions intensity. These indicators can help determine whether an investment is actually improving competitiveness.

African textiles sector can build factories whose energy systems are reliable, economically viable, and demonstrably lower in environmental impact, thereby positioning renewable energy as an industrial advantage.

Resource: IRENA and African Development Bank — Renewable Energy Market Analysis: Africa and Its Regions

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