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German Businesses Target More Investment In Africa In 2023

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German corporations intend to enhance their activities in Africa next year, particularly in areas such as green hydrogen and liquefied natural gas, with 43% deliberating on increasing investment in the continent, a recent survey showed.

The survey of members of the German-African Business Association also reflected 39% more of the Association’s members intend to maintain their expenditure levels in Africa stable.

“The majority of companies want to expand their activities in the coming year. It makes sense, because the continent is still on a growth trajectory,” British news agency Reuters quoted Christoph Kannegiesser, Association head, as saying. 

According to data from the economy ministry, German companies invested around 1.6 billion euros in Africa in 2021, of which about 1.1 billion euros went to the sub-Saharan region.

Europe’s strongest economy has been seeing an alternative for its gas importer in the African continent which, according to Kannegiesser, has a huge potential in the energy sector. Germany is also trying to lessen its dependency on Russia ever since the largest country invaded Ukraine.

“The field of green hydrogen and liquefied gas will give a new impetus in many countries,” he said, putting emphasis on Senegal, Nigeria, and Mauritania as countries with investment potential.

Kannegiesser mentioned that Namibia could also benefit hugely from green hydrogen production.

The survey reflects that 56% of the corporations see their business occupations in Africa in 2022 certainly and a further 7% rated them “very good”.

The Association, which claims to represent almost 85% of German firms working in Africa, wants the government to provide greater support through better conditions for export credit insurance and investment guarantees to ensure African business does not go into the hands of the United States and China.

The Association has condemned a law to be implemented from January 1 which requires big companies to work against human rights and climate violations, calling it counter-productive because it acts as another form of bureaucracy.

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