China has become a key contractor and technology provider for energy transition in Africa, especially when it comes to renewable energy, says the new report by the British think tank ODI Global.
According to experts, Chinese financial institutions allocated an average of over $18 billion per year for overseas energy projects from 2010 to 2021, with the total volume of direct investment and construction contracts over this period amounting to $33 billion and $57 billion, respectively. About one-third of China’s foreign energy loans, or $65 billion, went to African countries. By 2024, nearly half of China’s overseas energy projects were being implemented in the renewable energy sector, with 20% of all Chinese activity in this area taking place in Africa. Technology exports are growing especially quickly: in the period from 2020 to 2024, African imports of Chinese equipment for solar and wind power plants rose by 153%.
China is particularly proactive in its cooperation with Kenya, Mozambique and South Africa.
In Kenya, China is actively involved in the modernization of the country’s energy system, completely forgoing fossil fuel-related projects since 2020. Some of the biggest completed projects include the Olkaria IV geothermal power plant and the 50-megawatt Garissa solar park. Between 2010 and 2024, a total of 44 Chinese projects were implemented in Kenya, primarily in the construction of transmission lines and generating capacities. China also remains a leading supplier of clean technologies: in 2024, it accounted for 96% of solar panels, 81% of lithium-ion batteries and 21% of electric vehicles imported to Kenya.
In Mozambique, Chinese investment in renewables is still limited despite showing increased interest towards the sector. Recently, Tsingshan signed an agreement to build a $40-billion industrial park focused on solar and wind power, as well as battery and solar panel manufacturing. However, Chinese businesses are mostly focused on LNG projects, including Coral Sul FLNG and Rovuma LNG, as well as grid infrastructure and facilities for extracting and exporting feedstock.
In South Africa, Chinese companies are active in the solar power sector: of the 13 projects completed between 2010 and 2024, as many as 11 were launched after 2022. Among them is the largest solar power plant in the country, De Aar, along with the Redstone and Mooi Plaats projects. Chinese manufacturers, including Trina Solar, BYD and JA Solar, are supplying much of the equipment required to build these projects, namely, photovoltaic panels, inverters and battery systems.
