China earns praise for Africa's green transition

As momentum builds around green finance and climate cooperation between China and Africa, experts are emphasizing the significance of mutual understanding, transparency and community-driven investments in forging a just and sustainable future.

During a recent webinar on Africa-China green finance, hosted by the Africa-China Centre for Policy and Advisory in Ghana, speakers termed China as a pivotal partner in Africa's green energy transition through the Belt and Road Initiative.

Fu Yike, manager of climate program at Development Reimagined, an Africa-led consultancy in Beijing, said that since 2021, China has been involved in 155 climate-related projects in Africa, with 66 percent focused on renewable energy.

"China is currently contributing to more than 40 gigawatts of renewable energy capacity in Africa," Fu said.

If all renewable energy projects announced at last year's Beijing Summit of the Forum on China-Africa Cooperation are fully implemented, they could add more than 720 megawatts of capacity, she said.

Based on 2022 data showing Africa's installed energy capacity at 56 gigawatts, Fu said China's support trajectory could help the continent reach 204 gigawatts by 2030.

Meanwhile, China's green finance, often extended through concessional loans, plays a significant role in supporting large-scale renewable energy and infrastructure projects in Africa, Fu said. However, she stressed on the need to encourage Chinese private sector participation.

"When we hold climate investment dialogues, many Chinese investors express strong interest in Africa, but struggle to access finance. We believe innovative mechanisms like public-private partnerships and blended finance models could address such challenges."

Fu underscored untapped avenues such as green bonds and carbon markets as potential game changers in China-Africa cooperation.

She urged both sides to explore Africa's potential in locally manufacturing green technologies — which are essential to the clean energy value chain.

In addition, she stressed the need to bridge the information divide between Chinese investors and African project developers. She suggested a collective platform that can connect bankable, investment-ready projects with potential investors.

Beth Kimathi, director of credit at microfinance firm Edenbridge Capital in Kenya, echoed Fu's views and called for greater attention to Africa's immense green energy potential.

"Africa holds 60 percent of the world's solar energy potential. Yet we have deployed only 1 percent of global solar photovoltaic capacity," Kimathi said. "More than 70 percent of Africa's population is under the age of 30, representing an untapped workforce, innovation base and consumer market that can drive innovation."

Great potential

She highlighted Africa's 180,000 terawatt-hours of annual offshore wind capacity, 340 gigawatts of hydropower potential, rich geothermal resources in the East African Rift Valley, and more than 50 million metric tons of green hydrogen production projected by 2035.

Kimathi called for China-Africa cooperation to expand beyond traditional infrastructure to include clean energy, green transport, climate-resilient agriculture, sustainable manufacturing, and nature-based solutions.

China's leadership in green technology, financial strength, rapid project delivery and commitment to South-South cooperation make it an ideal partner for Africa's green transition, she said. Opportunities for knowledge exchange, skills transfer, and co-creating a new development model further enhance the partnership's value, she added.

Kimathi urged African governments to adopt people-centered green policies that prioritize energy access, green jobs and local innovation.

She also stressed the need to strengthen governance frameworks including green taxonomies, and to promote regional integration for clean energy trade and manufacturing.