ARKANSAS, Nov 21 (Future Headlines)- Germany, under the leadership of Chancellor Olaf Scholz, has announced a substantial investment of 4 billion euros in green energy projects across Africa by 2030. This announcement, made at the German-African business forum in Berlin, signifies a significant step toward fostering collaboration between Germany and African nations to accelerate the transition to carbon neutrality. The investment is expected to contribute not only to Africa’s sustainable development but also to Germany’s own ambitious goal of achieving net-zero emissions by 2045.
Chancellor Scholz highlighted the crucial role of green hydrogen in Germany’s energy transition. Given the significant upfront investment required for hydrogen production, the announcement underscores the importance of establishing long-term and durable cooperation between Germany and African nations. This cooperation is envisioned to facilitate the production and export of green hydrogen from Africa to support Germany’s energy needs.
The 4 billion euros investment will be channeled into the common EU-Africa Initiative for Green Energy. This initiative is a collaborative effort between the European Union and African nations to promote sustainable and renewable energy projects. The EU has already committed 3.4 billion euros in grants to support this initiative, emphasizing the collective commitment to fostering green energy development.
Finance Minister Christian Lindner highlighted the shifting global order and emphasized that Europe, including Germany, cannot afford to sit on the sidelines. The increased interest and engagement with Africa by European nations, including Germany, are seen as responses to the changing geopolitical dynamics and the pursuit of economic opportunities, critical minerals, and influence on the continent.
The announcement took place ahead of the G20 Compact with Africa summit, where leaders from more than a dozen African states convened. The Compact with Africa initiative, launched in 2017 under the German G20 presidency, aims to coordinate development agendas, attract investment, and identify business opportunities in African nations.
Germany’s trade with Africa amounted to 60 billion euros in the previous year, reflecting a notable increase of 21.7% compared to 2021. While this is a fraction of Germany’s trade with Asia, the upward trajectory indicates a growing economic relationship between Germany and African nations.
Ivory Coast President Alassane Ouattara highlighted the tripling of German companies in the country over five years. Similarly, Morocco’s Prime Minister Aziz Akhannouch noted a sixfold increase in German investment since 2015. These indicators suggest a positive trend in economic collaboration and business engagement between Germany and African nations.
Reporting by Kevin Wood; Editing by Sarah White