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Time to align: How Europe can compete with China on clean tech in Africa
['Rhea Ravindra', 'Byford Tsang', 'Andrew Small', 'Janka Oertel']
European Council on Foreign Relations
Beijing now presents itself not only as a developer of renewable energy projects or supplier of clean technology, but as a partner in supporting “Made in Africa” industrial value addition.
To support this, China created a Special Fund for the China-Africa Green Industrial Chain.
Since 2022, Chinese foreign direct investment in clean tech manufacturing has accelerated sharply, accounting for around 80% of China’s cumulative investment since 2013.
Three limits to China’s modelYet there are limits to China’s model in generating industrial value locally.
This is where Europe can still play a meaningful role, working with partners like Japan and South Korea, which are increasingly orientating their engagement towards local value creation.