China Boosts Strategic Investments in Africa’s Oil, Tech, and Renewable Energy

by: Jessica Ferreira

 

China’s interest in supporting strategic investments in multiple countries in Africa, including Angola, continues to grow, according to investment platform Energy Capital and Power.

At a time when Angola is trying to achieve its goal of increasing oil production to 1.18 million barrels per day, the Chinese state company China National Offshore Oil Corporation (CNOOC) sent in May a team of senior executives to Angola to discuss investment opportunities in oil exploration.

Chinese investment has also spread across the continent, as Africa continues to be a continent with vast natural resources and business stability, providing unique access to trade and therefore attracting investment opportunities for Chinese companies, the report added.

China Still the Main Destination for Angolan Oil

According to Energy Capital and Power, between 2022 and 2023, Chinese investment in the continent increased by 114%, covering areas such as oil and gas, mining, infrastructure, renewable energies and information technology.

As part of China’s “Digital Silk Road” initiative, which aims to expand digital technologies in developing countries, Chinese companies have sought to establish a network of digital infrastructure projects in Africa, which has resulted in China building more than 250 technology projects across the continent, including 4G and 5G telecommunications networks and data centers, the platform added.

With regard to renewable energies, since the beginning of the century, China has financed billions of euros in large-scale infrastructure projects in Africa, making Beijing the continent’s largest bilateral trading partner over the last two decades.

Angola’s Expects More Strategic Investments from China With New Protection Arrangements

Regarding mineral extraction, as the global energy transition continues to gain momentum, the acquisition of minerals and materials as essential components for the development of renewable energy solutions has drawn China’s growing attention to Africa’s essential mineral sources, resulting in multi-billion dollar deals with countries such as Guinea and Zimbabwe.

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