The survey of members of the German-African Business Association shows that another 39% want to keep spending stable on the continent. “Most companies want to expand their businesses next year,” said President Christoph Kannegiesser. “And that makes sense, because the continent is still growing.”
In 2021, German companies invested around 1.6 billion euros in the continent, of which around 1.1 billion went to the sub-Saharan region, according to data from the German Ministry of Economy.
Russian gas
Germany, which is Europe’s largest economy, has long been trying to reduce its dependence on Russian gas and sees big opportunities in Africa’s energy sector, according to Kannegiesser. “Investments in African green hydrogen and LNG are giving a boost to many countries,” he says, looking particularly at countries like Senegal, Nigeria and Mauritania for investment potential. Namibia could also benefit from the production of green hydrogen.
In the Reuters survey, 56% of companies said they were positive about their business operations in Africa, with 7% even being very satisfied. The German-African Alliance, which says it represents about 85% of German companies in Africa, wants the German government to provide more support through better conditions for export credits, insurance and investment guarantees from the of the same government, in order to promote African entrepreneurial life.