Beijing role in Africa's green shift draws praise

China has been a key driver of Africa's green transition, according to two new reports released by the Africa-China Centre for Policy and Advisory, in Ghana, in partnership with the African Climate Foundation.

The report notes that through the Forum on China-Africa Cooperation, China has introduced affordable and flexible financing models tailored to African countries, many of which view Western options as more stringent. These arrangements, including concessional loans, grants, and technical assistance, have made green financing more accessible and attractive.

The reports, focused on Ghana and Ethiopia, show that over the past two decades, the Forum on China-Africa Cooperation has evolved from supporting hard infrastructure to advancing sustainable development and green growth.

Developed under the Sino-Africa Green Finance Alliance, the country reports offer fresh evidence and strategic guidance to help African countries tap into China's rapidly evolving green finance ecosystem in support of their national climate ambitions.

In Ghana, China's recent contributions through FOCAC stand out for providing funding and technical support for green industrialization. Part of China's pledged $60 billion investment in Africa has supported projects such as the Bui Power Authority's Hydro-Solar Hybrid plant in Ghana and upgrades to industrial zones to boost eco-friendly manufacturing.

However, the report notes that only a small share of green finance currently targets Ghana's manufacturing sector, and that domestic banks are still slow to adopt climate-aligned lending.

Ghana estimates that shifting to a green industrial economy could create 1.2 million new jobs by 2030 and cut industrial emissions by 35 percent.

Achieving this will require mobilizing about $2.3 billion in green finance annually — a difficult target amid limited private-sector engagement and fragmented international support. China has helped bridge this gap by offering affordable, flexible financing models through FOCAC.

Industrial priorities

Ethiopia's report found that while FOCAC has supported infrastructure, renewable energy, and industrial parks, more alignment is needed with Ethiopia's green industrial priorities.

According to the report, China remains a major contributor: between 2011 and 2024, China invested $850 million in Ethiopia's green energy sector, the second-largest after the World Bank Group, which contributed $2.1 billion.

Chinese companies and banks have played a central role in building Ethiopia's modern infrastructure, including the 752-kilometer Addis Ababa-Djibouti Railway, major highways, telecom networks, and power projects.

As of late this year, Chinese enterprises had invested in more than 2,000 Ethiopian projects worth about $5 billion, creating nearly 600,000 jobs.

Chinese companies are further supporting Ethiopia's development of energy-intensive sectors such as textiles, leather, cement and metals, helping to integrate cleaner technologies. China announced at FOCAC's Beijing summit last year that it would implement 30 clean energy projects across Africa — initiatives from which Ethiopia, with its abundant renewable resources, stands to benefit.

Paul Frimpong, executive director of the Africa-China Centre for Policy and Advisory, said the assessment reflects the growing urgency of African countries in shaping their climate and development agendas, and underscores the importance of China-Africa cooperation in green growth and transition.

Sahele T. Fekede, energy access and transitions program manager at the African Climate Foundation, added that the findings highlight opportunities for African institutions to strengthen regulation, build capacity, and engage more effectively with Chinese partners on green finance.