German business is eyeing Africa
2022.12.27 08:38
German business is eyeing Africa
Budrigannews.com – According to a survey obtained by Reuters on Tuesday, 43% of German businesses plan to increase investment in Africa in the coming year, with a focus on green hydrogen and liquefied natural gas.
Another 39% of German-African Business Association members said they want to maintain the same level of spending in Africa, according to the survey.
The head of the Association, Christoph Kannegiesser, stated to Reuters, “The majority of companies want to expand their activities in the coming year.” It makes sense given that the continent is still growing.”
According to data from the economy ministry, German companies invested approximately 1.6 billion euros in Africa in 2021, with approximately 1.1 billion euros going to the sub-Saharan region.
Kannegiesser stated that he sees significant opportunities in the energy sector in Africa given that the largest economy in Europe has been trying to reduce its dependence on Russia for gas ever since the invasion of Ukraine.
“The field of green hydrogen and condensed gas will give another driving force in numerous nations,” he said, featuring Senegal, Nigeria and Mauritania as nations with venture potential.
Kannegiesser asserted that the production of green hydrogen could also yield enormous profits for Namibia.
According to the survey, 56% of businesses thought their business activities in Africa in 2022 were good, and another 7% thought they were “very good.”
The Association, which claims to represent approximately 85% of German businesses operating in Africa, advocates for enhanced support from the German government in the form of improved conditions for export credit insurance and investment guarantees to ensure that African businesses are not left to the United States and China.
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