Title: China's Green Finance as an Alternative Development Model: Evidence from some Sub-Saharan Africa
Authors: Truong Hoang Thuy Van
Volume: 10
Issue: 3
Pages: 1-10
Publication Date: 2026/03/28
Abstract:
This paper examines China's green finance model in Sub-Saharan Africa as a potential alternative to Western-led climate finance mechanisms, drawing on qualitative comparative case study analysis of Ghana and Ethiopia. Guided by three research questions concerning structural differences in finance models, developmental outcomes, and strategic motivations, the study employs thematic document analysis of secondary sources, including policy documents, FOCAC communiqués, investment data, and reports from multilateral institutions. The findings indicate that China's green finance occupies a functional niche rather than constituting a wholesale ideational alternative: its competitive advantages - faster disbursement, infrastructure scale, and low political conditionality - complement rather than replace Western-led mechanisms. In Ghana and Ethiopia, Chinese-financed projects have expanded renewable energy capacity, supported industrial upgrading, and contributed to employment creation. However, developmental outcomes remain bounded by financing gaps, debt sustainability risks, and uneven technology transfer provisions. The study further finds that China's green investment is inseparable from strategic objectives including industrial overcapacity export, critical mineral access, and soft power projection through FOCAC. Critically, African states are not passive recipients: where institutional capacity and political will converge, governments have successfully shaped the terms of Chinese engagement. The paper concludes that the developmental value of China's green finance depends above all on African governance quality, strategic clarity, and negotiating capacity.