Will China invest $50.7b in Africa by 2025?

China’s $50.7B investment in Africa by 2025 will drive green energy, digital trade, and infrastructure. Jana De Kluiver of Africa International Advisors explores key trends for Africa’s competitivenes

How important is China in financing energy infrastructure in Africa?

For over two decades, Chinese development finance institutions and commercial lenders have been important in financing energy infrastructure across the continent. According to analysis based on the Chinese Loans to Africa Database, China has provided about $43 billion in loans to support electricity access expansion from 2000 to 2023.

How can Chinese green energy firms contribute to Africa?

With extensive experience in renewable deployment and energy storage technologies, Chinese green energy firms can contribute by expanding their operations in Africa, offering technical expertise, and providing scalable solutions for mini-grid sustainability.

How can China improve Africa's development collaboration in 2025?

As 2025 begins, Africa and its partners face a critical juncture to redefine development collaboration. By prioritizing transparency, equity, and localized strategies, foreign investments can become catalysts for increased competitiveness. For China, this entails increasing its alignment with African development priorities.

What should African businesses focus on in 2025?

Against this backdrop, African businesses should focus on three key investment trends in 2025: renewable energy and green infrastructure, digital economy advancements, and industrialization and infrastructure development. Achieving a sustainable energy future in Africa presents a formidable challenge.

Why did China stop funding coal-fired power plants in Africa?

Recognizing the need for a more climate-friendly energy mix, China has ceased to provide funding for fossil fuel projects in Africa since 2020. Then, in 2021, Chinese leader Xi Jinping pledged to stop funding new coal-fired power plants overseas.