China has been playing an important role as Africa’s big investor. This can be attributed to the growing cooperation between China and Africa. The Forum on China-Africa Co-operation (FOCAC) was set up to build a solid material and physical foundation for the establishment of a China-African community with a shared future, as well as to strengthen the relationship between China and Africa.
It is a triennial high-level forum that has reaped many benefits and investments, including investments from the China-Africa Development Fund (CADFund) and Shenzhen Energy in Ghana. This year, the forum will be held in November in Dakar, Senegal.
Sunon Asogli Power plant project
CADFund and Shenzhen Energy Group Ltd., jointly invested in the construction of a gas combined cycle power generation project in Ghana in 2008, with a total capacity of 560MW.
The Sunon Asogli Power (GH) Gas Turbine Power Station Project is the first independent power production project in Africa invested by Chinese investors and is also a key project for Ghana’s power development.
The power plant can provide about 10% of the electricity needed by Ghana, greatly liberating Ghana from the burden of power shortage. The company puts efficiency, safety, environmental-friendly and social contributions as the enterprise spirit and is committed to being a model in China’s overseas investment.
Future investment projects in Ghana
Sunon Aogli Power (Ghana) Limited, a subsidiary of Shenzhen Energy Group, is ready to increase its investments in Ghana. It is worth noting that Ghana’s electricity demand is expected to increase from 3,539MW in 2022 to 4460MW in 2026. Shenzhen Energy Group has therefore recognized the need to plan for the future in order to meet the rising demand. It is prepared to invest in a Phase III expansion of its existing Sunon Asogli Power Plant.
Furthermore, it is no secret that the world is shifting toward renewable energy. In line with this, the Government of Ghana has stated in its Renewable Energy Master Plan that it would like to increase the proportion of renewable energy in the national energy generation mix between 2019 and 2030.
Shenzhen Energy Group is one of the leading companies in renewable energy sector. Sunon Asogli Power, a subsidiary of Shenzhen Energy Group, is therefore poised to expand its energy mix to include clean energy. Some clean energy projects the company is exploring are: Wind power project, Solar project, and a waste to Energy plant.
Sunon Asogli Power, through its West African Development Unit, is also exploring numerous projects in a few African countries like Cameroon, Liberia, Sierra Leone, South Africa, Senegal, and Sierra Leone. These investments are key to the economic and infrastructure development of Ghana and Africa as whole. This will also be an avenue for job creation, and the training of Engineer, skilled and semi-skilled local staff.
China-Africa Development Fund’s (CADFund) Investments
The China-Africa Development Fund (CADFund) is one of the Forum on China-Africa Cooperation’s key initiatives. In the 14 years since its inception, the CADFund has been dedicated to serving China-Africa cooperation with a market-oriented approach, fully utilizing its financial advantages and guiding role as a platform.
It has introduced Chinese enterprises, as well as Chinese capital, technologies, production capacity, and management experience, to Africa, and has actively assisted the continent in improving its development capacity, increasing tax revenues, and expanding exports. CADFund aims to promote the economic development and industrialization of Africa, reduce poverty, improve people’s livelihoods, and strengthen Africa’s capacity for sustainable development.