The impact of Chinese investment on access to clean and sustainable energy in Africa

The objective of this study is to examine the relationship between Chinese investment and access to clean and sustainable energy in African countries. We are motivated by the increasing engagement between China and Africa and the priority of sustainable energy for both partners. We employ robust econometric modelling, including fixed effects and the two-step Generalized Method of Moments, on a panel sample of 43 African countries over 19 years. The results show that Chinese energy investment in Africa is significantly associated with increased access to sustainable electricity. This effect is more pronounced in resource-rich countries, suggesting that China is more attracted to these countries due to the opportunities for resource trade in the form of partnerships. The policy implication of this finding is that it highlights the importance of African governments developing favourable strategies and policies to attract more Chinese investments in the energy sector.