By Ken Afor
German Chancellor Olaf Scholz announced, Monday, that by 2030, Germany will be spending €4 billion towards green energy projects in Africa, which can assist Germany in reaching its own goal of achieving carbon neutrality.
At a German-African business forum in Berlin, he held that Germany must import considerable amounts of green hydrogen in the future from Africa in order to accomplish its objective of achieving net zero carbon emissions by 2045.
Prior to the ‘G20 Compact with Africa’ summit, a forum held with the goal of increasing investment in Africa – the world’s poorest yet most rapidly developing continent – by aligning the reform-driven agendas of participating countries and discovering available business opportunities.
“Hydrogen production requires considerable investment at the start, so clear signals for a long-term and durable cooperation are needed,” said Scholz, who has made five trips to Africa since taking office in late 2021 in a bid to increase engagement with the continent.
“The Compact with Africa conference aims to send this signal: You can count on Germany as a partner”.
The European Union announced that they would provide €3.4 billion in grants towards the common EU-Africa Initiative for Green Energy, and an additional €4 billion would be channeled into the initiative.
African nations have for a long time lamented that although the Europeans discuss investing, the Chinese are providing funds without reprimanding them.
Nevertheless, Chinese lending in Africa is on the wane, whereas European involvement is expanding.
The West is competing with China and Russia for power, minerals and financial prospects in Africa so significantly these days.
“The global order is shifting and Europe and Germany can not just sit on the sidelines,” Finance Minister Christian Lindner said after meeting with his counterparts from the invited African countries at the conference.
On Monday, the fifth G20 Compact with Africa Summit since its establishment in 2017 during the German G20 presidency was held, bringing together heads of state from over a dozen African countries.
Germany’s total trade with Africa amounted to 60 billion euros ($65.4 billion) last year, reflecting an increase of 21.7% from the preceding year. This figure, however, remains a fraction of that of its trade with Asia.
President Alassane Ouattara of Ivory Coast stated that the amount of German companies had tripled in a period of five years, while Prime Minister Aziz Akhannouch of Morocco reported that German investments had increased six times since 2015.
The member countries of the G20 Compact are Morocco, Tunisia, Egypt, Senegal, Guinea, Ivory Coast, Ghana, Togo, Benin, Burkina Faso, Rwanda, Democratic Republic of Congo and Ethiopia.
Earlier, Nigeria’s President, Bola Ahmed Tinubu while addressing the audience at the conference made it clear that Africa is ready to join forces with Europe and other parts of the world in order to participate in beneficial business arrangements.
On the notion that Africa is a dumping ground, Tinubu said ‘no’ saying the continent should not be treated as a dumping ground for outdated equipment. What Nigeria and other African countries need are true investments that can aid their growth and success.
TheNewDiplomat reports that President Tinubu who made this known at one of the sessions affirmed that Africa is actively encouraging trade among its nations. “I’d say yes because the promotional efforts of the Chancellor, Olaf Scholz, who visited Africa recently, is equally an indication that Europe is serious about doing business with Africa,” he said.
The president stressed the progress in governance and steadfastness in Nigeria, claiming that the country is continually optimizing its trade climate and legal system to lure serious investors.
In response to worries regarding the introduction of nearly outdated technology to Africa, President Tinubu said, “Yes, on Siemens, I agree that near-obsolete equipment is not the answer to what we need in Africa. The critical part to success is to be able to leapfrog where we are today to the next generation of development, and we are opening the door for all of that.”
Nigeria’s Tinubu underscored the immense benefits that can be realized from Africa’s youthful populace characterized by high energy and a high level of education; thus, the continent should be very attractive to potential investors.
He underscored the necessity of proper management in business organizations, guaranteeing that with such procedures, investors will be able to reap benefits without fear of economic depletion.
“You can invest. If good governance in your corporate body is employed, there’s no way you will lose money,” Tinubu stated.
“The energetic population of youth and the well-educated population that is available are enough to attract (investors).
“We are reforming the rule of law, we are adhering to that and we’ll definitely continue to promote the opportunity given today by you.”
