According to the economy ministry, German companies will invest around €1.6 billion in Africa in 2021, of which about €1.1 billion in sub-Saharan Africa.
A survey of members of the German-African Trade Association revealed that 39% of association members intend to keep spending in Africa at the same level.
“Most companies want to expand their operations within the next year,” Christoph Kannegiesser, director of the association, told Reuters. “The continent is still on a growth trajectory, so it makes sense.”
Kannegieser sees huge opportunities in Africa’s energy sector, as Europe’s largest economy seeks to reduce its dependence on gas from Russia since its invasion of Ukraine.“The green hydrogen and liquefied gas sector will give new impetus to many countries,” he said, highlighting Senegal, Nigeria and Mauritania as potential investment countries.
Namibia could also benefit greatly from green hydrogen production, Kannegieser said.
The survey found that 56% of businesses rated business in Africa positive in 2022, and another 7% of them rated it as ‘very good’.
According to independent sources, the association, which represents about 85% of German companies operating in Africa, has urged the federal government to ensure that African companies are not left behind through improved export credit insurance terms and investment guarantees from the federal government.
The association criticizes the law, which came into force on January 1 that requires large corporations to act on human rights and climate change, and believes it is counterproductive because it creates a new bureaucracy.