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- German Companies Invested About €1.6 billion in Africa in 2021
Despite a whopping €1.6 billion ($1.68 billion) investment by German companies in Africa last year, a call for more investment in the region has been made. Germany’s Economy Minister, Robert Habeck, who made the call, Wednesday in Johannesburg, South Africa, said, “That (€1.6 billion) is encouraging, but still far from enough.”
The German minister, spoke at the opening of a German-African business conference, saying that he wants to direct more investment to Africa even as he suggested a revision of Germany’s foreign investment promotion scheme to ensure this through a system which hedges foreign direct investments against potential political risks.
Habeck encouraged additional incentives for investments in countries like South Africa and the wider region.
Also speaking at the fourth German – African Business Summit (GABS) 2022, a three-day conference organised by the Sub-Saharan Africa Initiative of German Business (SAFRI), during Habeck’s state visit to South Africa, South African Trade Minister, Ebrahim Patel, maintained that much more could be done on trade.
Compared to its investment in North America or Asia, for example, Germany has not really invested heavily in Africa.
Habeck said earlier that one-sided dependencies, for example on important raw materials, must be avoided, with supply routes broadened and new markets opened up.
He added that increased investment will also help Germany compete with China, which has many investments in Africa.
The aim, he said, is to deepen cooperation with Africa on renewable energies such as wind and solar energy as he maintained that Africa is an important partner in the fight against climate crisis.
President Cyril Ramaphosa of South Africa did not attend the opening of the conference, which kicked-off on Wednesday, December 7 and runs through Friday, December 9, 2022, as planned.
Sub-Saharan Africa Initiative of German Business (SAFRI)
The Sub-Saharan Africa Initiative of German Business (SAFRI) is the voice of German business to policy-makers in Germany and the Sub-Saharan African region. The objective of SAFRI is to intensify co-operation with the countries of Sub-Saharan Africa and to foster mutual trade and investment.
SAFRI, according to information obtained from its website, is jointly supported by the Association of German Chambers of Commerce and Industry (Deutscher Industrie- und Handelskammertag – DIHK), the Federation of German Industries (Bundesverband der Deutschen Industrie – BDI), the Federation of German Wholesale, the Foreign Trade and Services (Bundesverband Großhandel, Außenhandel, Dienstleistungen – BGA), and the German African Business Association (Afrika-Verein der Deutschen Wirtschaft). Under this regional initiative, the sponsors jointly aim to intensify economic relations between Germany and the countries of Sub-Saharan Africa.
