German companies plan to invest more in Africa in 2023


BERLIN (Reuters) – German companies want to step up their activities in Africa next year, especially in areas such as green hydrogen and liquefied natural gas, with 43% planning to increase investments on the continent, the report said. The investigation was obtained by Reuters on Tuesday. Indicated.

A poll of members of the German-African Business Association showed that a further 39% of the association’s members aim to stabilize spending levels in Africa.

“The vast majority of companies want to expand their activities within the next year,” the association’s president Christoph Kanegieser told Reuters. “The continent is still on a growth trajectory, so it makes sense.”

According to Ministry of Economy data, German companies will invest around €1.6 billion in Africa in 2021, of which around €1.1 billion will be invested in sub-Saharan Africa.

Kannegiesser sees great opportunities in Africa’s energy sector as Europe’s largest economy seeks to reduce its dependence on Russia for gas since Ukraine’s invasion.

“The green hydrogen and liquefied gas sector will provide renewed impetus in many countries,” he said, highlighting Senegal, Nigeria and Mauritania as potential investment countries.

Namibia could also benefit enormously from green hydrogen production, Kannegiesser said.

The survey found that 56% of businesses see their business operations in Africa in 2022 as positive, with a further 7% rating them as ‘very good’.

The association says it represents about 85% of German companies operating in Africa, and has been granted the terms of export credit insurance and investment guarantees from the German government to ensure that African businesses are not left to the United States. I hope the government will provide greater support by improving China.

The association criticized the law, which will take effect on January 1, obliging large companies to act against human rights and climate change, saying it would be counterproductive as it would create a new layer of bureaucracy.

Reported by Rene Wagner Written by Madeline Chambers.Editing by David Evans

Our Standards: Thomson Reuters Trust Principles.



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