Coal

Some Chinese insight into its African investment strategy

China’s overseas energy investment – some references
The Limpopo project was signed after the Forum on China Africa Cooperation (FOCAC) in Beijing earlier this month. At this FOCAC, China pledged another $60 billion loans and investments to Africa, a portion of this will go to energy sector. It’s not sure yet how much and where the money will go, but during 2014-2016, majority of the energy investment went to upstream oil and gas (72%), followed by coal projects (13%), large hydro (10%). The newly released China-Africa Cooperation Action Plan (2019-2021) <www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1593683.shtml> mentioned China and Africa will work together to establish a China-Africa Cooperation Center, and China is intend to support more renewables, mainly solar.

China’s finance for coal-fired power abroad is at odds with the direction it is taking domestically and the resultant coal overcapacity issue. Many also see this as China’s effort to secure commodities such as oil and copper in return for infrastructure investment in African nations and boosting its international influence. In multiple occasions Xi addressed that China’s loans and investments do not come with political string attached and China does not interfere in African sovereignty.

Here are some data/analysis references:
– John Hopkins University, China Africa Research Initiative <www.sais-cari.org/>, (w Data of Chinese loans to Africa and Chinese contracts in Africa) – Boston University, China’s Global Energy Finance <www.bu.edu/cgef/#/intro> (Finance details of energy projects from 2000-2017) – IEA, Boosting the Power Sector in Sub-Saharan African, China’s Involvement <www.iea.org/publications/freepublications/publication/Partner_Country_SeriesChinaBoosting_the_Power_Sector_in_SubSaharan_Africa_Chinas_Involvement.pdf> – The China-Africa Cooperation Action Plan (2019-2021) <www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1593683.shtml> – OilChange International, Assessing International Public Finance for Energy in Africa: Where Do Development and Climate Priorities Stand? <priceofoil.org/content/uploads/2018/07/africa_finance_report_final_web.pdf>

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