Germany is set to increase its state guarantees for business investments in African countries. This move is aimed at diversifying trade relations and making Germany more independent from China. The increased state guarantees will make it easier for German businesses to invest in African countries, and may lead to more trade and investment between Germany and Africa. This could benefit both Africa and Germany, as Africa would gain access to more investment and German businesses would gain access to new markets.
Economy Minister Robert Habeck said Wednesday that Germany will provide additional incentives to companies that invest in regions like sub-Saharan Africa, where the government wants to increase German investment and trade.
Speaking at a German-African business conference in Johannesburg, Habeck said the additional incentives would help to achieve the government’s goals of promoting economic development in Africa and reducing poverty and inequality on the continent.
Habeck said that Germany is already Africa’s largest trading partner and that the government is committed to further increasing trade and investment in the region. He added that the German government is also working to provide more financing for African businesses through development banks and other institutions.
The announcement reflects Germany’s strategy to diversify its global trade relations following Russia’s invasion of Ukraine. In an effort to lessen its dependence on China, German Environment Minister Svenja Habeck recently tweaked the country’s foreign risk insurance to reduce the country’s focus on China.
The move is part of a greater effort by the German government to shift its trading partners and protect its interests in the face of an increasingly aggressive Russia.
Habeck views the African continent as an ideal place to boost the production of renewable energies as an alternative to Russian gas. The Vice Chancellor believes that Africa has the potential to become a world leader in renewable energy, and that this would help to reduce dependence on Russian gas. This would be beneficial for both the African continent and the world as a whole.
The announcement by German Minister for Economic Affairs and Energy Peter Altmaier to increase his country’s imports of liquefied natural gas (LNG) from the United States reflects Germany’s strategy to diversify its global trade relations, reduce its dependence on Russia, and insure against potential supply disruptions.
Import dependence on Russia following that country’s invasion of Ukraine. Minister for Agriculture and Rural Affairs Julia Klöckner said the move would help reduce Germany’s dependence on a single supplier, according to a report in Deutsche Welle.
Habeck recently tweaked the country’s foreign risk insurance to reduce the country’s focus on China. The new policy will expand the number of countries covered and reduce the maximum payout.
On average, South Africa experiences around 85% of its electricity being sourced from coal-fired power plants. This high dependence on coal has resulted in the country frequently experiencing power outages, which has in turn caused negative economic consequences such as decreased industrial production.
These blackouts have been costly for businesses, with one estimate putting the direct financial loss at around R338 million per day. In order to lessen the frequency and impact of power outages, it is critical for South Africa to develop a more diversified and reliable energy mix.
The conference was overshadowed by the absence of South African President Cyril Ramaphosa, who did not attend following allegations he may not have followed correct procedures in reporting a theft. This had led many to believe that Ramaphosa was not taking the conference seriously, and that he may have something to hide. This created a tense atmosphere throughout the conference, with many delegates wondering what Ramaphosa’s absence could mean for the future of South Africa.
dpa produced this story. Editing by Ericson Mangoli