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China-Africa relations
ChinaDiplomacy

Global green transition is re-energising China’s investments in Africa after pandemic slowdown

  • African belt and road countries saw a 47% increase in Chinese construction contracts and 114% rise in investments last year
  • Driving the increase is the need for minerals used in the electric vehicle, battery and renewable energy industries

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Last year saw an increase in Chinese construction contracts and investments in Africa, signalling a recovery from the pandemic-led slowdown. Photo: AFP
Jevans Nyabiage
China’s increased appetite for metals and minerals to power its industries is fuelling a boom in Chinese investments and construction deals in Africa, after years of slowdown partly caused by the coronavirus pandemic.
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African countries that have a Belt and Road Initiative cooperation agreement with China saw a 47 per cent jump in Chinese construction contracts and a 114 per cent increase in investments last year compared with 2022, according to the China Belt and Road Initiative Investment report for 2023 by the Griffith Asia Institute at Griffith University in Brisbane, Australia.

The increase in 2023 saw Africa become the largest recipient of Chinese engagement, worth US$21.7 billion, overtaking Middle Eastern countries which saw US$15.8 billion in engagement.

Meanwhile, East Asian belt and road countries expanded their intake of Chinese investments by 94 per cent to US$6.8 billion in 2023, according to the report, which was produced in collaboration with the Green Finance & Development Centre of the Fanhai International School of Finance at Fudan University, Shanghai.

Observers expect the upward trend for Chinese investments in Africa to continue, though they say they will not reach the same levels that were seen a decade ago.

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Powering the recovery is the race for raw minerals that are vital in the global transition to green energy.
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