SOURCE / ECONOMY
More African countries eye China’s green technology to help accelerate industrial transformation
New horizon for EV cooperation
Published: Sep 06, 2024 10:41 PM
Nigerian drivers try newly delivered Yutong electric buses on May 23, 2023. Photo:VCG

Nigerian drivers try newly delivered Yutong electric buses on May 23, 2023. 


China and Africa have stepped up efforts to work for a green and more sustainable future, as evidenced by the rising import of Chinese electric vehicles (EVs) to Africa, and the expansion of Chinese EV industry footprint in the African continent, as China-Africa ties grow increasingly stronger.

This trend of closer green cooperation was in the spotlight during the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC), where green and sustainable development was a central theme.

Officials and business representatives from China and Africa at the forum emphasized the need for closer partnership focusing on ramping up the green economy. Chinese companies now hold a global competitive edge in delivering green products, while African countries are seeking the green transformation and sustainable economic growth, the officials said.

The Global Times reporters spoke with key Chinese EV industry players and experts on the sideline of the forum, to explore how Chinese businesses are helping African countries to accelerate green transformation. By enhancing cooperation, China could assist Africa to embrace a promising future for "Made in Africa."

Chinese EVs have long been popular in the African market, and this trend has become even more pronounced in recent years due to the strengthening of China-Africa political and economic partnership. 

Closer partnership 

In Kigali, the capital and largest city of Rwanda, the world's largest EV maker BYD has partnered with local companies to open the first BYD EV dealership in East Africa.
Rwanda actively promotes sustainable development and plans to reduce greenhouse gas emissions by 38 percent by 2030 and electrify 20 percent of all city buses, while BYD's new energy vehicles products are the key to help achieve the goal, the Chinese company said in a statement sent to the Global Times on Wednesday.

BYD has expanded rapidly in the African market in recent years. 

As of July 2024, BYD-produced EVs have covered nine African countries and regions including South Africa, Morocco and Tunisia, and it has set up more than 17 stores there, the company said.

In Nigeria, electric buses made by Yutong Bus Co, introduced to the country for the first time last year, have been in operation for 15 months, covering 80,000 kilometers and receiving high acclaim from local customers.

Yutong said in a statement to the Global Times on Tuesday that increasing investment in new-energy products is a crucial path to achieving sustainable development in the passenger transport sector, where demand is strong in Africa. 

"The company will actively seek development and cooperation opportunities in the new-energy sector between China and Africa," Yutong said in a statement.

In June, the first store of China's Hozon Auto in Africa was opened in Kenya, where the company's NETA V was launched. In the future, models such as the NETA X and NETA AYA will also be introduced to the vast African market. 

Over the next three years, 100 Hozon stores are planned to be established across the continent, with annual sales expected to exceed 20,000 vehicles, a manager with the Shanghai-based carmaker Hozon Auto told the Global Times.

Currently, many African countries are adopting favorable policies to support the green transition including developing infrastructure such as charging stations and working out friendly trade policies such as tariff reduction, creating favorable conditions for the adoption of EVs. For instance, the Egyptian government has implemented "zero tariffs" on EVs to boost their sales, according to media reports.

Africa's rich natural resources, favorable policy environment, and the active participation of China's leading EV companies, with their technological advantages and cost-effectiveness, make Africa poised to become a significant growth area in the global NEV market landscape, a Hozon Auto manager said.

EVs developed and produced by Chinese businesses are increasingly favored in the African market. 

Data shows that in 2023, exports of Chinese NEVs to Africa grew by 291 percent compared to the previous year, according to media reports.

The shift to green transformation is crucial for Africa. By leveraging the achievements of the Fourth Industrial Revolution, where green development plays a key role, the continent can embark on a path of sustainable development, Song Wei, a professor at the School of International Relations and Diplomacy at Beijing Foreign Studies University, told the Global Times.

China's EVs are well-suited for the African market due to their cost-effectiveness and tech competitiveness, Song noted.

'Made in Africa'

Chinese carmakers not only export their products to African countries but also work closely with the continent to establish local production lines as part of their efforts to promote "Made in Africa" for local communities.

In March this year, dozens of electric minibuses arrived in Ethiopia from China. These electric minibuses were exported in fully disassembled form by Xiamen Golden Dragon Bus Co, with local engineering companies responsible for assembly and market introduction.

In recent years, a number of Chinese power battery manufacturers, including Gotion High-tech, have announced investments in battery manufacturing facilities in Morocco, north Africa. 

It is of great significance for Chinese companies to invest in Africa to build battery and EV factories there. On one hand, it brings technology to Africa, and on the other hand, it creates jobs for local residents, Song said. "This is highly beneficial for Africa's green transition, industrial upgrading, and integration into the global value chain," the Chinese expert said.

The new approach, Song said, will help Africa avoid the old path of "pollute first, clean up later" and achieve leapfrog development for African countries.