China Poised to Fuel Africa’s Renewable Energy Shift, Despite Past Focus on Fossil Fuels

A new study from Boston University highlights China’s potential to spearhead a renewable energy transformation in Africa, despite a historical emphasis on fossil fuel investments on the continent. As Africa’s largest bilateral trading partner since the early 2000s, China has directed billions of dollars towards extensive infrastructure projects across African nations. Yet, it’s the green energy sector that now stands at a crossroads, awaiting Beijing’s pivot to fulfill its renewable promise.

Three years back, Chinese President Xi Jinping made a commitment to halt new coal-fired power projects abroad, turning towards green and low-carbon energy initiatives to combat climate change. This pledge aligns with Africa’s rich renewable energy potential, recognized as one of the highest globally. However, the continent’s journey towards an energy transition has seen minimal support from Chinese investments thus far. Analysis by Boston University’s Global Development Policy Center, alongside the African Economic Research Consortium, reveals that only 2% of China’s $52 billion energy loans from 2000 to 2022 favored renewables like solar and wind, with a stark contrast of over 50% dedicated to fossil fuels.

This investment strategy, heavily inclined towards the extraction and export of commodities, not only fuels China’s demand for oil and minerals but also overshadows the broader benefits renewable technologies could offer African nations. Notably, hydropower projects financed by the Export-Import Bank of China have primarily supported metal extraction processes, sidelining the broader adoption of clean energy solutions.

With fossil fuels currently dominating 75% of Africa’s electricity generation and about 90% of its energy consumption, the call for a shift towards renewable sources becomes increasingly urgent. The report underscores China’s unique position to catalyze Africa’s transition to renewable energy through enhanced trade, finance, and foreign direct investment strategies. As the continent stands on the brink of an energy revolution, the spotlight turns to China’s next moves in balancing its economic interests with global environmental commitments.