China funds Africa’s green energy but raises debt concernsCEFR B1
3 Nov 2025
Adapted from Vivian Wu, Global Voices • CC BY 3.0
Photo by Miu Chi Gigi, Unsplash
In recent years Beijing financed a range of energy projects in Africa, from hydropower and transmission lines to solar installations. A Boston University working paper using 2012–2020 data across more than 850 subnational regions found that China-financed power generation capacity was effective in combating energy poverty at the subnational level.
Chinese lenders accounted for approximately 12 percent of Africa’s external debt as of 2020. In 2024 President Xi Jinping pledged greater investment and China launched a Special Fund for the China–Africa Green Industrial Chain with RMB 5 billion (about USD 700 million). The fund focuses on clean energy, green transport, critical minerals and upgrading traditional industries.
At the same time, analysts note risks from resource-backed and opaque loans. African Development Bank President Akinwumi Adesina and other bodies call for debt transparency and stronger debt-management capacity to avoid governance problems and higher risk.
Difficult words
- loan — Money borrowed that must be paid back.loans
- energy — Power used for heat, light, or electricity.
- electricity — A form of power used to operate machines.
- project — A planned activity or task.projects
- dependency — Relying on something or someone.
- finance — To provide money for a project.financing
- resource — Materials or supplies required for something.resources
Tip: hover, focus or tap highlighted words in the article to see quick definitions while you read or listen.
Discussion questions
- What are the potential benefits and drawbacks of China's investments in Africa?
- How can transparency in loans help African countries?
- What might be some long-term effects of relying on loans for development?
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