Chinese lending to African governments has fallen sharply from a 2016 peak of around $28 billion a year, as Beijing grows more cautious about debt risks, but state-backed firms such as PowerChina continue to pursue new projects, increasingly in renewable energy rather than coal.
Africa is considered PowerChina’s second home, company executive Chen Guanfu told a Bloomberg event on Tuesday, adding that the company aims to establish operations in nearly every African market within five years.
Chen said Africa currently generates about 30% of PowerChina’s overseas revenue, with that figure expected to rise to 40–45% by 2030. Growth is expected to be driven by the development of clean-energy plants, hydropower dams and gas-fired power stations.
In South Africa, PowerChina has renewable energy projects worth around $3.5 billion, including solar photovoltaic installations and the Redstone concentrated solar power project. The company has previously completed projects such as Ethiopia’s Adama wind farm.
Chen highlighted the Oya hybrid renewable energy project in South Africa as a pioneering initiative to stabilise power from intermittent green sources. The project is being developed with partners including South Africa’s Eskom.
He said the project is a pilot model, serving not only Africa but also PowerChina’s more than 100 overseas markets.