China’s state-owned Power Construction Corp (PowerChina) is aiming for significant growth in Africa, focusing on renewable energy projects as part of its overseas expansion strategy, a company executive said.
Chinese lending to African governments has fallen sharply from a 2016 peak of about $28 billion a year as Beijing grows more cautious about debt risk, but state-backed companies such as PowerChina are still pushing ahead with new projects, increasingly in renewable energy rather than coal.
Africa is PowerChina’s second home, company executive Chen Guanfu said at a Bloomberg event on Tuesday, adding that it aims to establish operations in almost every African market within five years.
Chen said that Africa accounts for about 30% of PowerChina’s overseas revenue, with the figure expected to rise to 40–45% by 2030. The company expects the growth to be driven by increased development of clean-energy plants, hydropower dams and gas-fired power stations.
In South Africa, PowerChina has renewable energy projects worth about $3.5 billion, including solar photovoltaic installations and the Redstone concentrated solar power project.
The company has previously delivered projects such as Ethiopia’s Adama wind farm.
