Powering Africa: Chinese Company Seeks Greater Market Share

Dongfang Electric is one of the world’s largest manufacturers of electrical equipment.

China’s State-owned enterprises are run as purely commercial ventures with the top management expected to delivers results or be fired. It is therefore no surprise that many of them have over the years become international players in their domains, giving private businesses a run for their money. One of such State-owned enterprises is Dongfang Electric Corporation, DEC, also referred to as Dongfang Electric. Founded in 1958 in Chengdu, capital of Sichuan Province, DEC also runs a research institute. 

Briefing 26 African journalists on May 23, 2017, Dongfang Electric’s Vice President, Hu Weidong, emphasised the need for efficient power and transport systems for the growth of any economy. He expressed his company’s readiness to undertake projects in Africa on Build, Operate and Transfer, BOT and Build, Operate and Own, BOO financing models. “We also help to secure soft and commercial bank-rate loans for our clients given the goodwill we enjoy from Chinese banks,” Weidong disclosed.

Yan Haiying, Deputy Director of Publicity, listed some of the projects undertaken in Africa. These include the 1,870-megawatt Gibe III Hydro Power Plant and the 120-megawatt Aysha II Wind Power Project in Ethiopia. Commissioned in December 2016, the Gibe III Dam, the third on River Oromo, is 243 metres high. It is the third-largest dam in Africa. Its completion has doubled Ethiopia’s energy supply, enough to sell to neighbouring countries. Other DEC projects are the 300-megawatt Zambia MCL Thermal Power P...