African green projects set to grow

Countries in Africa have shown significant demand for building infrastructure over the past few years, and their demand for financing will increasingly tilt toward green and low-carbon projects for sustainable development, providing opportunities for builders and investors, industry organizations said.

Since 2020, some African countries have successively introduced a series of measures to develop their infrastructure, according to the China International Contractors Association.

"These countries have launched a group of transportation and housing construction projects, while they have been facing a large funding gap," Fang Qiuchen, chairman of the association, said during a conference in Beijing on Monday.

Africa is facing a significant funding deficit for infrastructure development.

By 2025, the annual investment demand for infrastructure construction in Africa is expected to reach $170 billion, with an investment gap ranging from $68 billion to $108 billion, according to an estimate by the African Development Bank Group.

Africa is the second-largest overseas contract engineering market for China, and cooperation between China and Africa in infrastructure construction has made significant strides, according to the Ministry of Commerce.

Over the past decade, Chinese companies have signed contracts worth more than $700 billion in Africa and achieved sales revenue of over $400 billion. Chinese enterprises have completed a number of landmark and small projects in sectors such as transportation, energy, electricity, housing and people's livelihoods, data from China's Commerce Ministry showed.

Rahamtalla M. Osman Elnor, permanent representative of the African Union to China, said Africa's infrastructure needs are significant, and projects undertaken by China have helped to drive social, economic and sustainable development on the continent.

Meanwhile, the World Wide Fund for Nature China said the financing environment in Africa has not been optimistic due to the impact of the COVID-19 pandemic and global uncertainties including the Russia-Ukraine conflict as well as climate change.

"Africa has a rich, but fragile biodiversity, and the continent is deeply affected by climate change. Green financing should become a major trend in Africa, including construction projects related to clean energy, electric transportation and renewable energy management," said Zhou Fei, chief program officer of WWF China.

PowerChina International Group Ltd, an arm of PowerChina, said Chinese companies should elevate overseas green investment and financing to a strategic level, and develop green investment and financing strategies tailored to local conditions.

With the global economy facing downward pressure and problems such as inflation and debt overload, building infrastructure on the continent is key to a rising Africa and its modernization, according to the Export-Import Bank of China, a policy bank.

"We are full of confidence in the development of Africa. Our key focus includes supporting the building of sustainable projects in Africa to promote the growth of a sustainable economy," said Gao Ning, deputy manager of the corporate banking department at the Export-Import Bank of China.