Belt and Road: USD 20 billion for green energy in six months, Africa leads investment
China committed more than USD 20 billion to green energy projects under the Belt and Road Initiative (BRI) during the first six months of 2026. Africa emerged as the primary destination for this wave of investment.
Launched shortly after President Xi Jinping came to power in 2012, the Belt and Road Initiative aims to strengthen Beijing’s economic influence and deepen trade ties with developing economies. Investment through the BRI has accelerated in recent months, driven largely by the global energy crisis. US and Israeli strikes on Iran pushed oil and gas prices higher, while growing demand for artificial intelligence increased the need for electricity infrastructure and data centres. At the same time, official Chinese customs data show a sharp rise in exports of clean energy technologies.
The BRI has long faced criticism for creating unsustainable debt burdens, particularly in some African countries, for the limited transparency of its lending practices, and for restricted market access for foreign partners in China. Despite these concerns, first-half 2026 data indicate that African countries continue to show strong interest in participating in the initiative.
Africa becomes the top destination for Belt and Road investment
Research by the University of Queensland and Shanghai’s Green Finance & Development Center confirms Africa’s leading position in Belt and Road investment. The continent ranked first among China’s regional investment destinations, with total Chinese investment nearly tripling compared with the first half of 2025 to reach a record USD 33.5 billion, the highest level ever recorded.
Within the broader Belt and Road programme, green energy has become a strategic priority. Globally, 56% of China’s energy-related engagement under the BRI focused on clean energy, setting a new record both in absolute value and as a share of total energy investment.
In the first six months of 2026 alone, financing reached USD 20 billion, matching the total committed during all of 2025. The figure includes USD 11.8 billion in construction projects and USD 8.3 billion in direct investments. Projects representing more than 20 GW of capacity have already been confirmed.
Private companies now appear to be driving Belt and Road investment more than Chinese state-owned enterprises, reversing the pattern seen in previous years. According to the University of Queensland, private sector participation rose to 48% in the first half of 2026, up from just 13% in 2022.
China’s geo-economic shift toward North Africa
The crisis around the Strait of Hormuz appears to have accelerated China’s interest in green hydrogen, long-duration energy storage and smart grid projects.
According to an analysis by the US-based Stimson Center, the conflict involving Iran has triggered a quiet but significant geo-economic shift in China’s relationship with North Africa. Given Beijing’s dependence on energy supplies from the Gulf, the conflict has encouraged China to strengthen economic ties with North African countries as part of a broader strategy to diversify supply chains and improve long-term energy security.
Beyond Algeria, which offers potential short-term hydrocarbon supply security, China is increasingly focusing on Egypt and Morocco for clean energy partnerships. Together, these relationships are helping position North Africa as an increasingly important region in China’s energy security strategy. The approach combines traditional energy diplomacy with long-term collaboration on clean energy technologies.
Morocco’s abundant solar resources, ambitious renewable energy targets and supportive policy framework make it an attractive partner for Beijing. The first multi-billion-dollar agreements covering green aluminium, green hydrogen, solar and wind energy were signed in 2025. Chinese companies including State Grid, SPIC and Shanghai Electric are active in the country. Investments in green hydrogen and electric vehicle battery manufacturing have attracted substantial Chinese financing and technical support, moving beyond equipment exports toward the development of integrated industrial value chains.
Egypt and Ethiopia attract major green energy commitments
China’s engagement in Egypt has expanded through pilot green hydrogen projects and is evolving from equipment exports toward broader industrial development. A landmark USD 18 billion agreement signed in early 2026 involves Norwegian partners alongside Chinese companies. The deal includes plans to expand solar power through Sungrow, develop multiple wind farms and strengthen Egypt’s domestic manufacturing base. Chinese firms are also modernising the Benban Solar Park while advancing several wind energy projects.
Among the new Belt and Road investment announcements in the first half of 2026, Ethiopia secured USD 14.8 billion in commitments related to green energy generation and manufacturing. Egypt also announced new investments worth USD 12.2 billion during the same period, reinforcing North Africa’s growing role in China’s clean energy strategy.