"China’s evolving role in Africa’s energy transition Overseas trade and investment in Kenya, Mozambique and South Africa" ODI Global, 7 May 2025

China has emerged as a leading global bilateral creditor and developer of energy infrastructure projects, as well as exporter of clean energy technology.

China dominates supply chains for major clean-energy technologies, exporting $114 billion worth of solar panels, wind turbines, lithium-ion batteries and electric vehicles in 2024.

This surge in outward investment and trade [...] is increasingly directed towards emerging market and developing economies (EMDEs).

However, limited fiscal capacity and high capital costs in many EMDEs obstruct the development of new clean energy projects despite interest from Chinese and other foreign investors. This challenge is especially acute in Africa [...].

[...] the report explores if, and how, Chinese stakeholders are contributing to energy transitions in three African countries – Kenya, Mozambique and South Africa.

China’s official annual overseas energy sector lending peaked in 2016 and has steadily decreased since then. [...] However, a closer look [...] shows that China’s energy financing on the continent remains predominantly directed to government agencies or state-owned enterprises.

Globally, Chinese SOEs and private enterprises prefer to bid for construction and equipment installation contracts [...].

A growing share of this overseas engagement is concentrated in the renewable energy sector, particularly solar power.

Chinese clean energy technology manufacturers are also actively expanding into EMDE markets [...].

Given high debt burdens, these economies are shifting from borrowing to PPPs to finance energy projects – a model with which China has had limited experience in these contexts.

China’s evolving offer to African economies will be important to watch [...].