Investments

Investments that diversify China could play the leading roles on the continent where it is the main investor in the green energy sector, far ahead of France and Italy. According to the latest report published by the International Energy Agency, Chinese companies are currently building 30% of new electricity capacity in sub-Saharan Africa, or more than two hundred projects between 2010 and 2020.

“We can say that one megawatt in two is Chinese. If we put aside the investments made in South Africa, it is even 46% of new electricity capacities in sub-Saharan Africa that are built by Chinese companies with a large place given to dams.

“Because 60% of the dams built in Africa are Chinese. Of the 94 dams already built in Africa, some are particularly controversial, such as the one at Merowe in Sudan. “For Africa, however, this remains a real opportunity. Almost 635 million Africans do not have access to electricity. With these projects carried out by China, 120 million people will have access to energy. This is obviously positive but far from sufficient. Other actors must be involved to electrify the continent. Why this craze?

“First, China is looking for outlets for its companies and we see that the main contracts are carried out by large state-owned companies like Sinohydro”, Looking at the map of these Chinese investments in the electricity sector, we can see that it matches that of its main partners on the continent: the South and East of Africa represent two thirds of Chinese investments, against 26% for West Africa and only 8% for Central Africa.

The One Belt One Road project also contributes to the African Union (AU) agenda 2063. It offers new funding perspectives for the major integration projects in the making on the continent for six decades. Indeed, China plans to build 30,000 km of new roads in Africa.