China is not only Africa’s largest bilateral trading partner and one of its most significant sources of foreign aid but also home to more than 80 per cent of the world’s renewable energy manufacturing. This makes the country uniquely well-positioned to support clean energy expansion and access in sub-Saharan Africa.
According to the International Energy Agency’s (IEA) estimate, Sub-Saharan Africa’s massive energy access gap will require substantial investments, around $20 billion per year through 2030. China could play a key role in filling that need.
Chinese investments in Africa’s clean energy sector soared by over 25 per cent annually from 2010 to 2020. China’s government financed the construction of a utility-scale 50-megawatt (MW) solar plant in Kenya—the first of its kind in 2019. The plant has supplied an average of over 100,000 MWH of electricity annually to support more than 350,000 people in 70,000 households.
Also, China committed to shifting its overseas renewable energy investments toward smaller-scale initiatives that prioritise social benefits. The Africa Solar Belt is the first significant program under this new strategy—and a vital Forum on Africa-China Cooperation initiative.
China has a long history of investing in energy infrastructure overseas. Its Belt and Road Initiative has invested over $1 trillion in infrastructure in over 150 countries. In the past, these investments have been dominated by fossil fuel projects, particularly coal power.
China has recently committed to ‘green’ investments and development efforts in developing countries. For example, it established a “South-South Climate Cooperation Fund” in 2015, which seeks to help developing countries tackle climate change by supporting ten pilot industrial parks, 100 climate mitigation and adaptation projects, and 1,000 climate-related capacity-building activities (“10-100-1,000”).
In 2021, China, along with 53 African countries and the African Union Commission (AUC), adopted the Declaration on China-Africa Cooperation on Combating Climate Change, stressing China’s commitments to increase clean energy investment in Africa and to end overseas investment in new coal power projects.
China and African partners have made some early progress in implementing the program. Since its launch in 2023, China has signed bilateral memorandums of understanding (MOUs) with two African countries: the Republic of Chad and the Democratic Republic of São Tomé and Príncipe.
Together, the three countries’ governments have developed and adopted an implementation plan valued at 15 million CNY (around US$2.1 million), which aims to deliver 3,100 solar photovoltaic systems in São Tomé and Príncipe and 4,300 to local households in Chad by the end of 2024.
The Africa Solar Belt Program, supported by research and policy analysis from WRI, aims to provide CNY 100 million (around US$14 million) in public funds between 2024 and 2027 to supply 50,000 African households with solar home systems.
It also aims to support interventions that can improve local populations’ livelihoods, including powering schools or healthcare with solar. China has promoted this as a shift to “small and beautiful” projects rather than its traditional utility-scale investments.
However, while the Africa Solar Belt and similar programs could significantly expand electricity access and improve people’s welfare in sub-Saharan Africa, fulfilling this promise will require China and Africa to work together to overcome critical implementation challenges.
Also, data from Boston University’s Global Development Policy Center shows that China granted loans worth about $4.2 billion to eight African countries in 2023, of which around 12 per cent, or $500 million, was allocated for renewable energy projects.
At the 2023 FOCAC summit, China reaffirmed its long-standing partnership with Africa, though with a clear shift towards more targeted and sustainable investments. Green energy, infrastructure, and industrial modernisation remain critical areas of cooperation, and while China’s financial pledge has decreased, its commitment to Africa’s development remains strong.
In 2024, Chinese President Xi Jinping announced a substantial financial commitment to support various initiatives across the continent and outlined key areas of future cooperation at The Forum on China-Africa Cooperation (FOCAC) Summit, held on 4-6 September.
At the summit, discussions on critical issues such as sustainable financing and the need for genuine investment strategies to foster long-term growth emerged as central themes. The Chinese government pledged nearly $51 billion in loans, investments, and aid to African countries over the next three years. While this exceeds the $40 billion pledged in 2021, it falls short of the $60 billion commitments in 2015 and 2018.
Despite the reduction in financial commitments, critical areas of cooperation—industrial modernisation, agricultural development, and green investment—remain central to the partnership, with renewable energy taking on an increasingly prominent role.
One of the most significant announcements from the summit was China’s plan to launch 30 clean energy projects across Africa. This move underscores a growing emphasis on renewable energy and reflects China’s strategy to create new markets for its renewable technologies, such as solar panels and electric vehicles. As China faces overcapacity in these sectors, expanding into African markets provides a mutually beneficial opportunity for both regions.
One African country that has benefited from FOCAC 2024 is Namibia’s state-owned power utility NamPower, which clinched a deal with two Chinese renewable energy companies, China Jiangxi International Economic and Chint New Energy Development (Zhejiang) Co. Ltd. The companies will install one of the largest solar energy projects in the southern African nation.
According to NamPower Managing Director Kahenge Haulofu, German Development Bank KfW would contribute N$1.4 billion (representing 80% of the project). In contrast, NamPower will contribute the other balance to ensure 100 megawatts of clean solar energy are added to the national grid.