Germany commits to investing 4 billion euros in green energy initiatives across Africa

21 Nov, 2023

Germany commits to investing 4 billion euros in green energy initiatives across Africa

On Monday, the German government declared a substantial commitment of 4 billion euros ($4.37 billion) towards African green energy projects until 2030. Chancellor Olaf Scholz, addressing the G20 Compact with Africa summit in Berlin, stressed the importance of African countries benefiting more from their abundant raw materials.

During a news conference, Scholz, while not specifying particular projects, advocated for the processing of materials used in green energy within the African nations they originate from. This, he emphasized, would lead to job creation and economic prosperity in these countries, while also ensuring reliable suppliers for the German industry.

The Compact with Africa initiative, launched by Germany during its G20 chairmanship, is designed to enhance economic conditions in participating countries, making them more appealing for foreign private investment. Scholz expressed Germany's commitment to becoming a long-term and reliable partner for African nations, particularly in intensifying economic relations and jointly working towards a climate-neutral future.

The countries participating in Compact with Africa include Egypt, Ethiopia, Benin, Burkina Faso, Ivory Coast, Ghana, Guinea, the Democratic Republic of Congo, Morocco, Rwanda, Senegal, Togo, and Tunisia, according to the German news agency dpa.

Responding to inquiries about China's substantial presence in Africa, several African leaders expressed openness to diverse partnerships. Moussa Faki, the chairperson of the African Union Commission, acknowledged China's audacity and vision but emphasized Africa's receptiveness to different collaborations. Faki urged partners to trust in Africa, minimize conditions, and collaborate on creating favorable conditions. He highlighted the shared vision as a means to attract significant investment to the continent, emphasizing the responsibility of improving governance as a crucial aspect.