Chinese companies critical role in Africa's development

Chinese companies have been playing a critical role in Africa's accelerating process of energy transition and industrialization, and are expected to further unleash the continent's huge potential of its rich energy resources, said a top executive of the African Energy Chamber as it signed a memorandum of understanding Thursday with a Chinese firm to create a $100-million fund to drive technologies in Africa.

NJ Ayuk, founder and executive chairman of the African Energy Chamber, said during a forum held on Thursday in Shanghai that Chinese and Africans "get along very well like 'peanut butter and jelly'," highlighting Chinese investors' contribution to Africa's energy and social development. He expected further cooperation on both sides in energy sectors including the renewable energy, such as solar, wind and hydrogen powers, as well as fossil fuels like coal, natural gas and oil.

"The energy transition in Africa has to be different, and we cannot pursue it in the same way as China or Western countries have done. We have 600 million people without electricity, 900 million without clean cooking technologies, and most of them are women. Our first job in Africa right now is to provide electricity and energy access for all Africans … You have seen massive opportunities in the African energy sector today and it makes that market exciting for not just China, but for all the investors that are looking at the continent," he told China Daily.

Africa boasts rich oil and gas resources, and is particularly rich in renewable energy resources. The continent holds approximately 60 percent of the world's most optimal solar energy resources and possesses enormous wind, hydro and geothermal potential. However, Ayuk pointed out that the "regulatory environment" and "financing" are the main challenges hindering the sector's growth.