Broadcast Type: Interview; Tags: Panels, Tariff, Gazetted, Signed, Implemented, Effective, Tariff, Importation, Solar, Panels, Things, Joined, Commissioner, International, Trade, Administration, Commission, Ayabonga, Cawe, Developments, Space, Good, Evening, Commissioner, Lovely, Putting, Tariffs, Solar
for those of you out there that are looking to start enterprising efforts in the solar space be wary to import if you intend your solar panels tariff there's a new that has been gazetted and signed and already off implemented it effective yesterday a tariff that is on the importation of solar amongst other panels by things i'm joined on the line the commissioner at the international trade administration commission that is ayabonga cawe look at this to take a and other developments space in this good evening commissioner lovely you again to speak to we're now putting tariffs on products solar to your listeners much for having and thank you so us thanks time thanks for the thanks for the time commissioner what is the the latest what tariff can we just run through what is being imposed on we understand it is ten percent but ten percent on what thank you so it's ten much jimmy well percent on finished and assembled sells photovoltaic cells in the language coming into country the i think it's been interesting for us to observe for me some of the commentary around this particular issue a lot of linking it to people some of the other developments in this market coming from elsewhere think it does but i have its own kind of longer history in south africa this push try and ensure to that our transition towards renewable forms more of energy is also linked building some to capability on the assembly and manufacturing side of things here at home and think some of our listeners i would know the first that policy foray two thousand and into this was in three the white renewable paper on energy which came out that year had really which tired i guess the fortunes our transition of not just diversify to ensuring that we how we generate energy able but we are to leverage some of the industrial manufacturing and opportunities that might arise from i think this that and measure is really about that but we also do recognise of course that we are in the process of implementing energy action an plan which needs as energy much renewable coming online at a household firm level as and the possible and that's why the announcement of this jimmy to just maybe correct your introduction there has also accompanying rebate come with an because we recognise that the supply capability in the country might not be sufficient to meet the demand but i think tariff itself the at the indicated level that you've just is a strong enough signal protective for some cover for those the necessary who might want at scale to make the country those investments in absolutely next what's going to be my point to come to is the usually when you and i have these discussions around centred protectionism especially of the local economy i suppose that's and why you impose a tariff like this but then insufficient it if there is supply or not enough manufacturers that are based locally does that not then defeat the purpose of wanting to transition well issue precisely that's the but i think in it's this instance complicated somewhat jimmy by the significant of firm amount exit we've seen in this market if you look back five years ago probably had a you lot more firms solar in the assembly and kind of manufacturing probably than we have now we have a few kind of located players now se z doing this who are work and exit a lot of that has been primarily as a result the stop of and start nature of profile the demand associated with the main renewable project the time which was at the renewable energy power producer integrated programme i think subsequent we've kind to that of seen a surge in both from households demand and even firms the outside of programme which is kind demand of stabilise the profile somewhat from that situation had one where you source of demand that was largely driven by public procurement sense and so in a we do recognise to medium that in the short term you might not have capability domestic on the back of those firm exits to be able to meet all of the demand and that's why we make provision for that in the rebate so that this measure doesn't trade you know unnecessarily raise the of cost importing solar panels when one has to do so because the domestic market their can't meet specific education or can't necessarily meet order their requirements and so it's that balancing that we're trying act to arrive at here than rather kind of you know protectionism simple crude and in the market by must add jimmy the way i where all manner of reports from similar authorities the world over are lamenting overcapacity are lamenting significant capability being built one country in and you would have seen the page of the economists over the last week or so talking to this issue a sense really so in it's about trying to sure that the balance make those skills degree that is possible to the but also in so doing to send a signal to crowd any future in perspective investment into this particular market which if one looks at the integrated plan resource is going to a very long be with us for time commissioner you touched on the household aspect to look at of that it and i want for a second is this not going to make the solutions expensive more for households well certainly not short term in the jimmy the point we and i think this is are making that part of it is that you have to make many of the wholesalers for who would feed household the demand you want to make the terms on sure that which they access their imports don't change in the short term do but we envisage of course that you know some point in at the medium to long term you will have domestic players or of even agents international firms beginning to assemble some these locally of with the adequate scale economies the efficiencies and that would allow them to on some of compete the prices but i think also at a fundamental level for the consumers who are listening on the also accept core we must that much of the very low prices that one might access these panels the one hand have on to do with productivity advances and technological superiority in china yes some but to some degree have parts of it also to do with very deep protection this sector that has received in china deep the very support in the form of subsidies funding conventional and all manner of other measures have that effectively allowed this sector to enjoy dominance it does the african not just in our south market but in other markets as well and i think you've seen this in the european how union has responded with their own probe and similarly to over weeks or so the last few how the burden administration the u s in has also responded slapping on this tariffs and electric year of and even some the kind of you know materials precursor and materials that go into battery technology commissioner what about our own government is i mean it one thing to say that the chinese is as manufacturers have kind of really protected this and built this out but on our on that side side as well our has been government on this just energy transition drive since the sixth administration seventh we're now in the administration we've been funded by international the counterparts likes of germany the countries likes of nordic why are we not then able to increase our own local manufacturing have capacity because we the financial resources from the government's perspective well look i mean i think it's thing to say we have one the financial resources it's something entirely altogether to go into under the bonnet of what's some of the commitments attached to that money and i'm qualified certainly not to speak to that time but i do want to say this commitment to renewable energy and industrialising on back of that older than the seventh even administration it was second administration the in two thousand and three put out that a white paper and said all the advances in renewable energy must be married to building capabilities to either assemble to kind either of do intellectual property work and all manner of other activities related to this transition and so that policy places an obligation on us much like the re local content requirements place an obligation on those who participate the public procurement in element we have i think the task now is to begin a compact to build as part of process the national dialogue where we persuade in one another with those the private sector who are incentivised section twelve by i income tax incentive to make use to start of a more of local product as opposed to some of the more kind of accessible imported stuff that starting to see we are has surged over the into the country last while and so way in a forward yes is about what do you do with the kind of state income statement and the balance sheet of the government i think a big part but of this is it will only work we will only the scale get and volumes of demand that make manufacturing worth while if the private sector and households you and me begin to kind seek out of the domestic alternatives hope we can and and we proudly work with our friends and sa to at least give and mark some signal that says this solar panel or kind of this you know solar component the other or is assembled in the country and and therefore as a consumer on the you can then back of that make some choice informed and certainly this is an industry can make we the most of and we use to our can advantage i mean we we have the potential can to create more twenty five thousand jobs than more than fifteen rand in investment billion and make the it's about how we have most of it i suppose we'll to leave it at that commissioner so much for those insights thanks that's commissioner the international at trade administration commission ayabonga the cawe on latest tariffs that are being imposed solar products on a tariff of about ten percent step into a brighter future