Written By: Faith Jemosop
While the West debates climate goals and carbon taxes, China is doing something different. It’s a building. And in Africa, it’s building green.
According to a May 2024 report by ODI Global, nearly 60% of China’s new energy projects in Africa are now renewable. That’s a remarkable shift for a country long criticized for backing fossil fuel infrastructure across the Global South.
Now, it seems, China has found a new frontier for solar panels, wind turbines and geopolitical influence.
From Coal-Financier to Green Exporter
Let’s not forget: between 2010 and 2021, China pumped $65 billion into African renewable projects. That’s one-third of its global clean energy lending. But 2024 marks a tipping point.
China is not just funding renewable projects anymore, it’s dominating them. Solar and wind tech exports from China to Africa surged by 153% between 2020 and 2024.
Explore the full ODI Global report (ODI, May 2024)
This is more than just a transition. It’s a strategy.
And it’s working.
Why Africa? Why Now?
The African continent is undergoing an electricity boom. With demand skyrocketing and traditional grids under strain, renewables offer the quickest, cheapest fix. And China, armed with surplus green tech and an appetite for infrastructure dominance is filling the vacuum.
In 2024 alone, Chinese companies announced 49 energy projects in Africa, with 59% focused solely on renewables. No coal. No gas. Just wind, solar, and hydro.
Read how China halted overseas coal funding (Reuters, 2021)
That’s not diplomacy, it’s deal-making through development.
The Business Model Behind the Green Push
So how exactly is China doing this?
Unlike the Western model of equity stakes and long-term risk, Chinese companies prefer engineering, procurement, and construction (EPC) contracts. It’s built fast, exits early and it dominates the African market.
In 2024, 85% of Chinese energy engagements in Africa were EPC-based. Only 15% involved direct ownership or equity. That means less liability and more speed.
Also read: Why South Africa Gives Big Power Discounts to Corporates (And What It Means for You)
Even more interesting: Chinese firms avoid independent power producers (IPPs). Why? Because IPPs depend on long-term buyer contracts, which are often unstable in emerging economies. China prefers to build directly for governments or state-backed utilities.
Loans, Leverage, and the Shift to Commercial Banking
Between 2010 and 2021, nearly 92% of Chinese renewable energy loans in Africa went to public agencies or state enterprises. Back then, concessional loans flowed from the Export-Import Bank of China and China Development Bank.
But that’s changing.
Today, we’re seeing more commercial players: the Industrial and Commercial Bank of China, the Bank of China, and joint ventures with African partners. The loans are more commercial. The structure is more complex. But the mission is the same as the energy narrative.
And while most projects are still under $100 million, China has proven it can get a big 15% of funded projects requiring over $500 million.
The Big Picture: Green Energy or Green Hegemony?
China’s renewable energy strategy in Africa isn’t just about climate leadership. It’s about power both literal and political.
Also read: Chinese To Invest $1.7 Billion in Ethiopia Mining ,Energy
By focusing on infrastructure without conditions, China presents itself as an alternative to Western aid dependency. And as it exports solar panels and wind turbines instead of ideology, it builds influence the old-fashioned way: through roads, wires, and grids.
The Verdict: Who Really Leads the Energy Transition?
As the U.S. and EU continue to hold climate summits and issue development papers, China is showing up in construction boots.
Yes, there are risks, debt burdens, limited local ownership, opaque contracts. But in a world scrambling for clean energy, results matter. And in Africa, China is producing results faster than anyone else.
Africa may hold the sun and the wind. But for now, it’s China that’s selling the sails.
