Japanese company Toyo has announced plans to construct a 2-gigawatt solar cell factory in Hawassa, Ethiopia, investing approximately $60 million. This strategic move comes in response to new US tariffs on solar panels from four Southeast Asian countries.
Toyo’s CEO, Junsei Ryu, stated that the main objective is to supply a module facility to be built in the United States. The company currently produces solar products in Vietnam. The Ethiopian plant, expected to begin production in 2025, aims to create up to 880 jobs.
This development is part of Toyo’s strategy to diversify its supply chain and enhance global sourcing capabilities for solar solutions.
The US imposed tariffs on solar equipment from Malaysia, Vietnam, Thailand, and Cambodia, claiming that manufacturers in these countries receive subsidies that hinder American domestic green energy production.
Ethiopia, known for its renewable energy projects like the Grand Ethiopian Renaissance Dam, is becoming an attractive location for such investments. A recent report by the Foundation of Sustainable Development Africa highlighted the potential for millions of skilled jobs in sectors including renewable energy across key African countries.
This move by Toyo aligns with broader trends of manufacturing shifts and the growing importance of Africa in the global renewable energy sector.