Investing in Africa's Bright Future

China is the world's largest investor in renewable energy, and it is now making good on a promise to undertake green technology investment in Africa. With Chinese assistance, Africa's ample sunshine will soon be put to good use for creating solar energy.     

In June, it was announced that China plans to assist Africa to develop solar energy infrastructure with solar power projects that will be implemented across 40 African countries with a total investment of around $100 million. In 2010, China invested around $10 billion in Africa's mineral, oil and construction industries. Yet the prospective investment in solar panels could mark the beginning of a new phase that will cast a whole different perspective on China's engagement in Africa.

The June announcement comes after a ground-breaking proclamation made by Chinese Premier Wen Jiabao at the Forum on China-Africa Cooperation (FOCAC) meeting in Egypt in 2009, where he stated that China would build solar plants, biogas and small hydro plants in Africa. Currently, approximately 100 such projects are in the early stages of development in 40 African countries, with each project worth between $1.5 million and $3 million.

With ample sunshine all year round, South Africa could potentially become a regional market leader for solar panels. Hence Chinese solar projects are also ongoing here. Suntech Power Holdings, the largest solar panel manufacturer in China, signed a memorandum of understanding with a local partner, Umsimbithi Holdings, in August 2010 to develop a $1 billion solar plant with a total capacity of up to 100 megawatts. In November 2010, the Chinese solar developer Yingli Solar, one of China's leading photovoltaic cell manufacturers, agreed with a South African partner, Mulilo Renewable Energy, to develop a small-scale solar-energy project in the town of Copperton in the Northern Cape province, with plans to expand its initial 10 megawatts capacity to 500 megawatts.