Keypoints:
- Ghana shows how to negotiate better
- Half of projects remain unfinished
- Experts call for stronger oversight
GHANA’S experience in managing Chinese-backed energy projects could provide a blueprint for other African countries seeking better value from major infrastructure investments, according to new research from the Energy for Growth Hub, an independent energy policy think tank focused on electricity access, energy investment and power-sector reform in developing economies.
The findings come as African governments face rising electricity demand, mounting debt pressures and increasing reliance on foreign-backed infrastructure financing. Researchers argue that stronger institutions may determine whether future Chinese-supported projects accelerate development or become costly long-term liabilities. The debate is becoming increasingly important as Chinese investments across Africa’s energy sector continue to expand, reinforcing Beijing’s role in the continent’s power development ambitions.
A new policy memo by the Energy for Growth Hub says many African governments enter major power-sector agreements without sufficient technical, financial or legal expertise to negotiate effectively with Chinese lenders and contractors. The report argues that strengthening domestic institutions could significantly improve project outcomes across the continent.
China remains central to Africa’s power ambitions
China has become one of the most influential financiers of Africa’s electricity infrastructure over the past two decades, funding power stations, transmission networks and renewable energy projects across dozens of countries.
According to the Energy for Growth analysis, nearly 280 Chinese loan-financed energy projects were launched across 40 African countries between 2000 and 2021. Around half of those projects, representing approximately $73bn in commitments, remain unfinished.
The figures underscore both the scale of China’s involvement and the challenges many African governments face in converting financing commitments into completed infrastructure.
For many governments struggling with power shortages, Chinese-backed financing remains one of the few available sources of capital capable of supporting large-scale infrastructure development. Yet researchers argue that stronger negotiating capacity is becoming increasingly important as project structures grow more complex and financing conditions evolve.
Procurement weaknesses increase project risks
The report argues that weak procurement systems remain one of the biggest barriers to achieving stronger outcomes from Chinese-supported power projects.
Many projects are negotiated directly between governments and Chinese state-linked firms rather than through competitive international tenders. While such arrangements can accelerate project approvals, researchers warn they may also weaken governments’ ability to benchmark costs and negotiate favourable terms.
The memo identifies four key areas where African governments can improve outcomes: strengthening project preparation, improving procurement processes, building negotiating expertise and enhancing implementation oversight.
According to the report, countries often lack specialised teams capable of evaluating engineering proposals, analysing financing structures and monitoring contractual obligations throughout project lifecycles.
Without those capabilities, governments face greater risks of cost overruns, implementation delays and infrastructure that fails to meet long-term development goals.
The researchers concluded that ‘host-country capability matters’, arguing that stronger institutional capacity often produces better infrastructure outcomes.
Ghana emerges as a leading example
The report highlights Ghana as one of the strongest examples of how governments can secure better outcomes from Chinese-backed projects through improved technical capacity and stronger oversight.
Researchers say Ghana invested in project assessment, contract management and technical review capabilities, allowing officials to scrutinise financing arrangements more effectively and maintain tighter supervision during implementation.
The Ghanaian approach demonstrates that stronger preparation can improve bargaining power even when dealing with major international financiers.
Ghana’s broader energy reforms also provide useful context. Earlier this year, Ghana unveiled West Africa’s first large-scale floating solar power project, reflecting efforts to diversify its energy mix while strengthening long-term energy security.
Analysts say the combination of stronger governance, project oversight and investment diversification may offer valuable lessons for other African countries pursuing ambitious power-sector expansion programmes.
Debt concerns reshape infrastructure financing
The debate over Chinese-backed projects is increasingly linked to concerns about debt sustainability.
Over the past decade, Chinese financing has helped many African countries close critical infrastructure gaps. However, rising repayment obligations have prompted closer examination of project quality and long-term economic returns.
Africa Briefing recently reported that many African countries now repay more to China than they receive in new lending, highlighting the changing financial relationship between Beijing and African borrowers.
The Energy for Growth report argues that stronger procurement and oversight systems can reduce those risks by helping governments negotiate more sustainable financing arrangements before projects begin.
Energy economists have increasingly stressed that the success of infrastructure projects should be measured not only by construction completion but also by their long-term contribution to economic growth, industrialisation and electricity access.
Renewables become the next phase
China’s engagement in Africa’s energy sector is also evolving.
While earlier investment was dominated by fossil fuel and large hydropower projects, Chinese companies are increasingly targeting renewable energy opportunities. This shift reflects both Africa’s growing electricity demand and Beijing’s broader efforts to support greener overseas investments.
The transition could create significant opportunities for African countries seeking to expand energy access while reducing emissions.
As Africa Briefing previously noted in its analysis of regional energy policy, Africa’s energy transition will depend on sustainable financing, stronger regulation and long-term planning rather than investment alone.
Researchers believe Chinese-backed renewable energy projects could play a major role in meeting future electricity demand if governments strengthen domestic institutions capable of managing increasingly complex infrastructure partnerships.
Governance will determine future outcomes
The report concludes that access to financing alone is not enough to guarantee successful power-sector development.
Instead, governance quality, technical expertise and negotiating capacity increasingly determine whether infrastructure projects deliver lasting economic benefits.
That debate is expected to intensify as China expands fresh investment commitments across Africa while governments simultaneously seek stronger safeguards around implementation, debt management and accountability.
With hundreds of millions of Africans still lacking reliable electricity access, policymakers face a growing challenge: attracting investment while ensuring infrastructure agreements generate sustainable long-term value.
