China’s ‘clean pivot’ sparks new era in African energy investment

Africa’s energy investment landscape is undergoing a dramatic shift as China’s once-dominant role in fossil fuel infrastructure gives way to diversified,cleaner,and more commercially driven models.

According to the International Energy Agency (IEA),Chinese development finance for African energy projects has plummeted by over 85% since 2015,contributing to an overall drop in public energy financing from $28 billion in 2015 to $20 billion in 2024. In response,private capital has surged,with clean energy investments doubling to $40 billion in the same period,led by solar power and off-grid solutions. China’s retreat from coal and large hydropower coincides with a strategic pivot. Now,ODI Global,a UK-based think tank,finds that China’s clean energy investing is on the rise in Africa,with “solar and wind power now accounting for 59% of its energy projects on the continent.” This aligns both with global climate goals and China’s domestic push to offload clean energy capacity in emerging markets.

Commercial Chinese banks and state-owned enterprises are replacing policy banks as the primary financiers. Countries with stronger fiscal positions,like Zambia,are attracting these players through bankable projects,while concessional loans from Exim Bank still support less commercially viable,community-focused initiatives. Meanwhile,African startups focused on energy access and electric mobility are attracting record venture capital,with EV investments jumping eightfold since 2021. Still,the gap left by dwindling public finance is stark. With nearly 600 million Africans lacking electricity and demand expected to triple by 2035,Africa’s clean energy future depends on scaling private capital — and making sure no market is left behind.