China funds Africa’s green energy but raises debt concernsCEFR A2
3 Nov 2025
Adapted from Vivian Wu, Global Voices • CC BY 3.0
Photo by Miu Chi Gigi, Unsplash
China has financed hydropower, transmission lines and solar projects across Africa. These projects brought electricity to many places and a Boston University study using 2012–2020 data in more than 850 regions found China-funded power helped reduce energy poverty.
Chinese lenders made up roughly 12 percent of Africa’s external debt in 2020. In 2024 President Xi announced more investment and a Special Fund for the China–Africa Green Industrial Chain with RMB 5 billion (about USD 700 million). However, economists and groups warn that resource-backed and opaque loans create problems and call for debt transparency and better debt management.
Difficult words
- loan — Money given to someone to be paid back.loans
- energy — Power needed to do things like light or heat.energy projects, energy goals
- build — To make something by putting parts together.
- improve — To make something better than it was.
- develop — To grow or build something over time.development
- resource — Materials or assets used to provide help.resources
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- Do you think foreign loans are good or bad for developing countries? Why?
- How do you feel about China's role in Africa's energy projects?
- What are other ways countries can help each other with energy needs?
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