Across Africa, there’s a familiar refrain in industries like textiles, electronics, and agriculture: countries become the world’s factory, pumping out raw materials or semi-finished goods while importing the shiny, finished products. It’s a little like cooking a five-course meal, only to have someone else eat it while you’re left with the crumbs. Unfortunately, many African countries have found themselves in this cycle, and the question for Ethiopia is: will it avoid getting stuck in the same trap as it steps into the solar industry?

Enter TOYO, a japanese company that’s making waves in Ethiopia with a $60 million solar cell factory, creating 880 jobs and producing 2 gigawatts of solar cells annually. It’s a feel-good story, but here’s the twist: while Ethiopia gets the jobs, most of the solar cells are being shipped straight off to the United States. The bigger question: should Ethiopia settle for just a handful of jobs, or should it aim to keep some of the solar power at home?

A Strategic Business Decision

TOYO’s decision to set up shop in Ethiopia isn’t based on its abundance of sunshine or the country’s love of green energy—it’s about tariffs. Ethiopia enjoys a tariff exemption on bifacial solar panels in the U.S., which means TOYO can build its factory in Ethiopia, churn out solar cells, and ship them to its U.S. factory without paying hefty tariffs. It’s a classic case of smart business—who wouldn’t want to cut costs? But while TOYO reaps the benefits of this deal, Ethiopia gets a bit of a raw deal when it comes to the actual solar cells being produced.

Yes, Ethiopia gets jobs, but let’s be honest: jobs are just one piece of the puzzle. Imagine this: Sahanease Solar Panels, an up-and-coming Ethiopian solar manufacturer, could drastically reduce costs if it could get its hands on some of those locally produced solar cells. Instead, they’re stuck importing expensive panels while TOYO ships off its own production to the U.S. It’s like Ethiopia is the kitchen, but someone else is getting all the food.

Balancing Export and Local Needs

Don’t get me wrong—jobs are great. Ethiopia needs them, especially in the renewable energy sector. But if Ethiopia wants to truly thrive, it can’t just be a factory for the world. It needs to ensure that the solar cells being produced in its own backyard actually stay in the country. This way, local manufacturers like Sahanease could reduce production costs, expand, and—drumroll, please—help bring affordable solar energy to homes in Ethiopia.

Right now, though, the model is like giving someone a fishing rod but telling them they can’t fish in the lake next door. Ethiopia has the raw materials, but they can’t use them—those solar cells are being sent elsewhere. It’s a missed opportunity, and Ethiopia’s future in solar energy shouldn’t just be about creating jobs—it should be about building a thriving, self-sustaining solar industry that serves its own people.

Potential Paths Forward

So, what can Ethiopia do to avoid being the global solar cell factory without any of the solar cells for itself? Here are a couple of options:

• Stay an export hub where Ethiopia continues producing solar cells but relies on imports for domestic needs. It’s a neat business arrangement, but one that leaves Ethiopia stuck in the role of a raw materials supplier.

• Negotiate with TOYO (and others) to keep a portion of the locally produced solar cells in Ethiopia. This would help local manufacturers expand, reduce costs, and potentially provide affordable solar energy to Ethiopians.

Foreign investment is important, and Ethiopia certainly benefits from it. But that investment should work both ways—not just line the pockets of global companies while Ethiopia’s local industry is left in the dust.

The Bigger Picture

Ethiopia’s situation is part of a larger story playing out across the continent, where countries often find themselves stuck in a pattern of exporting raw materials but importing the finished products. But here’s the twist: Ethiopia’s position in the solar industry could be a game-changer. By ensuring local manufacturers get access to solar cells produced in the country, Ethiopia can break free from this cycle and start producing more value locally.

It’s not just about being a supplier—it’s about becoming a player in the global solar energy sector while serving the needs of its own people. Ethiopia could lead Africa in renewable energy, but only if it makes sure that local industries aren’t left holding an empty bag while the rest of the world gets the goods.

TOYO’s factory in Ethiopia is a step in the right direction, but Ethiopia faces a tough choice: will it settle for jobs, or will it seize the opportunity to create a self-sustaining solar energy industry that benefits its people?

It’s time for Ethiopia to ask the tough question: are we just going to be the global solar factory, or are we going to make sure some of the solar power stays here at home? The answer could shape the future of Ethiopia’s energy sector and its economic development—and who knows? Maybe Ethiopia will finally get a bite of that solar pie, rather than just baking it for someone else.