- China has been urged to boost green power investments in Africa.
- Chinese lending is skewed towards fossil fuels and neglects renewables.
China has a chance to lead an energy revolution in Africa, but a study suggests it must reverse two decades of neglect in green power investments. Despite being Africa’s top trading partner, China has primarily financed big infrastructure projects instead of green energy.
President Xi Jinping pledged to avoid new coal-fired power projects abroad and support green energy. Yet, Chinese lending and investment in Africa’s green transition mainly favour fossil fuels, with only 2 per cent going to renewables like solar and wind.
This highlights the need for China to refocus on aiding Africa’s energy transition through trade and investment. While Chinese institutions focused on commodity extraction and electrification, there’s potential for collaboration in renewable energy.
Africa still heavily relies on fossil fuels, accounting for 75% of electricity generation and 90% of energy consumption in 2022.