EU pledges €15.5 billion for clean energy in Africa as China continues to invest

The European Union announced that it is mobilising €15.5 billion under the “Scaling Up Renewables in Africa” campaign to develop clean energy across the African continent. According to the European Commission, €7 billion comes directly from new EU commitments. The funding is intended to support the development of new renewable energy capacity and provide access to electricity for 17.5 million people. The EU is therefore seeking to expand infrastructure investment on the continent alongside China and others. 

Africa is a region with enormous potential, at least in terms of natural resources, according to many politicians. Some analyses suggest that it has around 60% of the world’s best solar locations, particularly in the northern and southeastern parts of the continent.

At the same time, however, it is a continent facing significant energy poverty. More than 600 million people live without access to electricity. This creates a combination of high demand and substantial investment opportunities that major global economies are vying for.

EU member states have also long sought to be among the investors in Africa, although they have been more cautious than, for example, China, which has been investing heavily on the continent for more than a decade.

According to PowerChina, Africa accounts for around 30% of all its overseas revenue, and the company plans to increase this share to 40–45% by 2030.

The Reuters news agency reported on the state-owned company’s plans shortly before EU leaders made their announcement. PowerChina is carrying out major construction and energy projects in Africa, including renewable energy projects worth USD 3.5 billion in South Africa.

The EU’s strategy is somewhat overshadowed by Chinese investment

China is moving quickly in Africa. Its investments often cover design, financing, construction and operation—in other words, the so-called “turnkey” model. This enables rapid implementation and reduces the administrative burden.

The EU, by contrast, focuses on long-term partnerships. Its investments are intended to support not only the construction of energy facilities, but also institutional development, regulatory stability and transparency. This model is slower, but is more focused on ensuring that projects fit into the region’s broader strategic framework. The initiative is also part of the EU’s Global Gateway strategy, which aims to mobilise up to €300 billion worldwide for infrastructure and energy by 2027.

The question, then, is whether the European strategy is arriving too late and entering a landscape already heavily shaped by China’s presence. China dominates the global market in many segments, particularly photovoltaics, battery storage and grid components. In practice, this could mean that some European-funded projects will also be built using Chinese suppliers.

The regional context is also important. Other players are involved in Africa’s energy transition, too. The United Arab Emirates is focusing on large-scale solar projects, while Turkey is investing in hydropower and industrial infrastructure. Competition in the region is therefore growing, with various economies vying to become Africa’s main partner in energy development. The European initiative thus adds to the range of global investment flows.