By: China daily

China is emerging as a pivotal partner in advancing Africa’s green transition, according to two new policy reports released by the Africa-China Centre for Policy and Advisory in partnership with the African Climate Foundation. The research, focusing on Ghana and Ethiopia, details how China’s financing models—delivered through the Forum on China-Africa Cooperation (FOCAC)—have provided accessible and flexible support for sustainable development across the continent.

The reports note that FOCAC has evolved from backing traditional infrastructure to actively promoting green growth. Through concessional loans, grants, and technical assistance, China has offered financing options that many African governments view as more adaptable than those available from Western institutions.

In Ghana, Chinese funding has supported projects such as the Bui Power Authority’s Hydro-Solar Hybrid plant and the greening of industrial zones. However, the report points out that green finance for Ghana’s manufacturing sector remains limited, and domestic banks have been slow to integrate climate considerations into lending. Achieving Ghana’s goal of creating 1.2 million green jobs by 2030 will require an estimated $2.3 billion in annual green finance—a target for which Chinese financing can help bridge the gap.

Ethiopia’s assessment highlights that China has been the second-largest investor in the country’s green energy sector since 2011, committing $850 million. Chinese enterprises have invested in over 2,000 Ethiopian projects, valued at roughly $5 billion, and created nearly 600,000 jobs. These span infrastructure—such as the Addis Ababa–Djibouti Railway—as well as energy-intensive industries like textiles and cement, where cleaner technologies are being introduced.

Paul Frimpong, Executive Director of the Africa-China Centre, stated that the findings reflect Africa’s urgency in shaping its climate and development agendas, emphasizing the importance of Sino-African cooperation. Sahele T. Fekede of the African Climate Foundation added that the reports underscore opportunities for African institutions to strengthen regulation, build capacity, and engage more strategically with Chinese partners to unlock green finance and advance a just transition.