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China seeks sales markets for green technologies at Africa summit

Solar cells on an open area

China wants to market green technologies at the Africa Summit. But the African states are skeptical. Will they accept China’s offer?

This week, China is welcoming representatives from 50 African countries to the ninth Forum for China-Africa Cooperation in Beijing. The People’s Republic wants to increase its sales of its products in Africa, especially green technologies such as electric vehicles and solar systems.

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The background to this is the threat of export restrictions by Western countries in these areas. In return, China is offering further loans and investments. But the African heads of state and government will probably not be easy to convince.

“The prize will go to the countries that have carefully studied the changes in China and align their proposals with China’s new, reduced priorities,” said Eric Olander, co-founder of the China-Global South Project, according to Reuters. This is a major challenge for Africa, which generally has little expertise on China.

African countries want to know how China intends to deliver on its promise from the last summit in 2021 to buy $300 billion worth of goods. They also expect assurances about progress on unfinished Chinese infrastructure projects such as the East African Railway Link.

China’s new priorities in Africa

China’s strategy in Africa has changed. Instead of financing large-scale projects, Beijing wants to increasingly sell advanced and environmentally friendly technologies. China has already begun to adjust its credit conditions for Africa and provide more funds for solar parks, electric vehicles and 5G infrastructure.

Last year, China offered $4.2 billion in loans to eight African countries and two regional banks, including about $500 million for hydropower and solar projects, according to data from Boston University’s Global Development Policy Center.

At the opening of the forum on Thursday, President Xi Jinping will pitch China’s emerging green energy economy to leaders from Gambia, Kenya, Nigeria, South Africa and Zimbabwe.

Geopolitical competition for influence in Africa

China is not the only country seeking influence in Africa. The USA, Great Britain, Italy, Russia and South Korea have also held Africa summits in recent years. They recognize the potential of the continent’s young population and 54 UN votes.

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“There is no other development partner that does so much,” says Hannah Ryder, founder of the consulting firm Development Reimagined, to Reuters“But are African leaders capable of getting China to really engage so that the balance of ‘winning’ is much more in favour of the African side?”

China wants to promote trade and access to minerals such as copper, cobalt and lithium in countries such as Botswana, Namibia and Zimbabwe. However, Beijing may be cautious about new financial commitments after countries such as Chad, Ethiopia, Ghana and Zambia have asked for debt restructuring since the 2021 summit.

“We will likely see continued caution in financing megaprojects,” said Lina Benabdallah of the Center for African Studies at Harvard University, according to a Reuters report. Instead, Beijing will push for technology transfer.

China’s engagement could also be hampered by security concerns, such as a conflict between Niger and Benin that killed six Nigerian soldiers guarding a pipeline backed by PetroChina, or deadly protests against tax hikes in Kenya.

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