China has the potential to lead Africa’s renewable energy revolution, as indicated by a recent report from Boston University.
Despite being the continent’s primary trading partner and funding numerous infrastructure projects, China has historically underinvested in green energy initiatives in Africa.
While President Xi Jinping pledged to support eco-friendly energy initiatives by abstaining from new coal projects overseas, Chinese financial support for renewable energy in Africa has been minimal.
From 2000 to 2022, only 2 percent of energy loans from China’s main development finance institutions went to renewable projects, with over 50 percent allocated to fossil fuels. The report suggests that by increasing investments in green energy, China can aid Africa’s energy transition and accessibility.
Despite China’s focus on commodities and electrification projects, the report highlights the lack of full-scale support for renewable technologies in Africa, where fossil fuels still dominate electricity generation and consumption.
