With 43% of German companies aiming to increase investment in the continent, they want to expand their operations there in the upcoming year, particularly in sectors like green hydrogen and liquefied natural gas.
“The majority of companies want to expand their activities in the coming year,” Association head Christoph Kannegiesser told newsmen. “It makes sense, because the continent is still on a growth trajectory.”
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.
A further 39% of association members polled by the German-African Business Association said they wanted to maintain their level of expenditure in Africa.
“The field of green hydrogen and liquefied gas will give a new impetus in many countries,” he said, highlighting Senegal, Nigeria and Mauritania as countries with investment potential.
According to Kannegiesser, Namibia might also gain significantly from the creation of green hydrogen.
According to the poll, 56% of the companies had a favorable opinion of their business operations in Africa in 2022, and a further 7% gave them a “very good” rating.
Kannegiesser stated that he sees significant prospects in the energy business in Africa as the largest economy in Europe works to lessen its reliance on Russian gas following the invasion of Ukraine.
In order to prevent American and Chinese companies from dominating the African market, the Association, which claims to speak for 85% of German companies operating there, wants the government to provide better terms for export credit insurance and investment guarantees from the German government.
The Association has criticised a rule that will go into effect on January 1 and requires large corporations to take action against human rights and environmental infractions, claiming it is ineffective since it adds another layer of bureaucracy.