China’s growing involvement in Africa has taken a greener turn with its latest commitment being a $50 billion support for the continent’s energy transition. This came to the fore at the ninth Forum on China-Africa Cooperation (FOCAC), held in Beijing in September 2024, where a number of partnerships were inked to propel the region toward a sustainable energy future.
The energy transition, front-ran by solar, wind, and battery technologies, now lies at the heart of China’s investments. This marks a notable shift in focus from its historical emphasis on infrastructure megaprojects like roads, bridges, and railways.
Green pivot in China-Africa romance
Chinese President Xi Jinping’s pledging of the $50 billion aid underscores Beijing’s eye for a pivotal role in Africa’s green energy transition. It follows previous commitments of $40 billion in 2021 and $60 billion in 2018, signaling a trend of scaling with a clear priority shift toward sustainability.
One of the critical agreements signed at FOCAC was with Zambia and Tanzania, which aims to modernize the Tazara railway for transporting copper and cobalt, essential minerals for clean technology such as electric vehicles. Commitment to green infrastructure also extends to Nigeria, where an agreement was made to assemble electric tricycles, marking the nation’s leap into renewable transport.
Also, China has partnered with South Africa to expand renewable energy and energy storage cooperation, setting the stage for wider regional energy independence.
This growing engagement signals China’s increasing focus on renewable tech, mirroring the global race for green energy. As the world shifts toward cleaner energy sources, China’s investments across Africa reflect its soft power strategy, designed to win influence and build economic dependencies while supporting Africa’s energy transition.
Softer, greener power form
While China is known for financing extensive infrastructure in Africa, its pivot toward green energy investments is a calculated soft power move. With Beijing facing mounting export restrictions on its solar panels, batteries, and other clean technologies from Europe and the United States, Africa represents a vital alternative market.
Fostering relationships in energy transition, it ensures a steady outlet for its green products and builds influence in the continent’s future energy systems. The focus is also partly driven by China’s reduced lending for large-scale infrastructure projects, which have drawn criticism for creating debt dependency among African nations.
Now, China appears to be leaning into green energy, where it has made significant domestic investments and technological advancements over recent years. This shift allows Beijing to offer African nations cleaner, more sustainable solutions while positioning itself as a leader in the global green energy race.
New dawn of Chinese loans?
While Chinese lending to African countries dipped after peaking in 2016, it saw a modest rebound in 2023. Of the $4.6 billion in new loans offered to African countries, approximately $500 million went directly into hydropower and solar projects.
This reorientation toward renewable energy aligns with China’s evolving global ambitions and Africa’s untapped green energy potential. African nations like Angola are increasingly seeking Chinese investments in solar panels and electric vehicles, with the hope of leveraging green technology to diversify their economies.
In many ways, this highlights China’s rethinking. As it trims back its involvement in large-scale infrastructure projects, green tech is a masterstroke for its romance with Africa.
This has not only allowed Beijing to balance its geopolitical ambitions but also to address growing criticisms about its role in environmental degradation and unsustainable debt in Africa.
Africa in the global renewables race
Vast mineral reserves have made the continent a centerpiece in the global renewables drawing board. The continent is rich in essential minerals required for electric vehicle batteries, solar panels, and other green technologies, and China has been quick to capitalize on this advantage.
Countries such as the Democratic Republic of Congo (DRC), Zambia, and Zimbabwe are home to vast copper, cobalt, and lithium deposits—key ingredients in battery production and renewable technologies. More than 70% of the world’s cobalt is produced in the DRC, and China has become the largest foreign investor in the region’s mining industry.
China’s CMOC Group, for instance, owns 72% of the DRC’s cobalt and copper mines, including the world’s second-largest cobalt mine, Tenke Fungurume. Sheer Chinese dominance in these critical resource markets has given it position as a leader in the global green energy supply chain.
As the race for renewable energy minerals intensifies, its investments in mines will increase, a foundation for its cleantech export strategy.
Challenges and responses
While Chinese investments in Africa’s energy transition promise substantial economic growth, they also present several challenges. The race for Africa’s green minerals has sparked concerns about the long-term development of African economies, especially given China’s tendency to export raw materials for processing at home.
Many African leaders argue that local industries should be involved in adding value to these minerals, rather than exporting raw materials and re-importing finished goods at a premium.
Angola, for example, has signaled that it may look to diversify its trading partners, seeking to balance offers from both Europe and China. Additionally, some countries, such as South Africa, have imposed tariffs on solar imports to protect their nascent renewable energy industries.
African governments are also exploring public-private partnerships to reduce their reliance on traditional Chinese lending structures, seeking more equitable economic relationships.
Labor standards, environmental concerns, and the displacement of communities due to mining projects are other pressing issues. Expanding green energy infrastructure should also involve safeguarding workers’ rights and ensuring fair access to economic benefits.
A China-shaped green future?
China’s multibillion-dollar playbook is significant in the evolution of Sino-African relations. As the continent gears up for an energy revolution, China is strategically positioning itself as a key partner, offering financing, technology, and infrastructure to support Africa’s green transformation.
Though these partnerships are promising, markets must take steps to ensure they can capture the full benefits of the trade. Developing local industries, building technical expertise, and ensuring labor standards, can maximize leverage in the green era.
Ultimately, China’s soft power strategy through cleantech investments will be defined by the outcomes—whether it becomes a mutually beneficial relationship or one that deepens Africa’s dependence on external powers.
