How does China contribute to Africa's Energy Development?

African countries benefit from sustainable development and energy access. China’s financial support increases Africa’s energy capacity and independence. China has notably increased its investments in Africa’s energy infrastructure, establishing itself as a critical player in the continent’s energy development.

What are China's energy investments in Africa?

These investments aim to address Africa’s energy deficits, boost economic growth, and solidify China’s influence on the continent. Hydropower projects have become a major part of China’s energy investments in Africa. A prime example is Uganda’s Karuma Hydropower Project, a 600 MW facility built on the Nile River.

Does China support Africa's energy transition?

By supporting Africa’s energy transition, China is not only addressing global environmental concerns but also positioning itself as a leader in clean energy finance. Despite its push for renewables, China continues to invest in Africa’s oil and gas sector, which remains a vital part of the continent’s economy.

How does China Finance power plants in Africa?

In the past, the bulk of Chinese financing had been driven by the backing of China’s two policy banks – the Export-Import Bank of China (EXIM) and the China Development Bank (CDB) – and directed particularly towards coal-fired power plants. The two banks had issued $182bn in loans across Africa, primarily into the energy sector.

Does China have a role in Africa's Energy Security?

Mozambique, with its significant natural gas deposits, has become a key player in Africa’s gas export market, and China’s involvement strengthens its energy security. Additionally, China’s engagement in Angola, Nigeria, and Sudan’s oil sectors demonstrates its long-term commitment to securing stable energy supplies for its rapidly growing economy.

Why is China investing in Africa?

China’s financial support for African energy infrastructure is a key driver of its influence on the continent. In 2023, China’s lending to Africa rose to $4.61 billion, marking the first increase since 2016. This shift highlights China’s renewed interest in African development and its focus on green investments.