By Abbas Nazil
China is increasingly steering its energy investments in Africa toward renewable sources, with solar and wind projects now comprising 59 percent of its energy portfolio on the continent, according to a recent report by UK-based think tank, ODI Global.
This marks a significant shift in China’s overseas energy strategy, aligning with its 2021 pledge to cease funding new coal-fired power plants abroad.
The report reveals that from 2010 to 2024, China invested approximately US\$66 billion in Africa’s energy sector, with one-fifth of that focused on renewable energy development and infrastructure.
Africa has rapidly become a strategic market for Chinese solar and wind technology.
Between 2020 and 2024, Chinese exports of clean energy technology to the continent surged by 153 per cent, driven by Africa’s increasing energy demands and China’s dominance in global solar panel production.
China currently manufactures over 80 percent of the world’s solar panels, positioning it as a key supplier to emerging economies seeking affordable, reliable renewable energy solutions.
The ODI Global report highlights that nearly half of China’s global exports of solar panels and wind turbines in 2024 were directed to developing countries, totaling around US\$13.8 billion.
In comparison, Chinese exports of similar technologies to the United States and the European Union stood at US\$117 million and US\$11 billion respectively.
Specifically, China exported more than US\$1 billion worth of clean-energy products to South Africa, Mozambique, and Kenya in 2024 alone.
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Elena Kiryakova, the lead author of the report and a research fellow at ODI Global, noted that the growing adoption of Chinese solar and wind technologies in Africa is largely due to their global competitiveness and the continent’s urgent energy needs.
Chinese firms, faced with domestic overcapacity and international trade restrictions, are increasingly turning to African markets to sustain production and expand their global footprint.
Lower trade barriers and favourable investment conditions in many African countries have made them more accessible than Western markets.
Chinese financial institutions have played a pivotal role in supporting renewable energy projects across Africa.
Although Chinese energy lending peaked in 2016, the report shows that Africa still receives nearly a third of China’s global energy-related financing, amounting to US\$65 billion from 2010 to 2021.
In countries like Kenya, China’s focus has shifted entirely from fossil fuels to renewable projects such as the Olkaria IV geothermal plant and Garissa Solar Park.
In Mozambique, Chinese investment remains concentrated in liquefied natural gas (LNG) projects, while South Africa has seen Chinese firms dominate the solar energy sector since 2022.
Kiryakova also suggested that if U.S. trade barriers return following their temporary suspension, Chinese clean tech firms may consider relocating production to African nations offering favourable trade and investment incentives.
However, she cautioned that stricter U.S. rules on origin could limit the benefits of such moves.
Nonetheless, the study underscores Africa’s growing significance in China’s global clean energy ambitions, as both sides look to leverage renewable energy for economic development and environmental sustainability.
