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German Industry Calls for Policy Shift on Africa

The Sub-Saharan Africa Initiative of German Business (SAFRI) published a report on Oct. 16, calling for a shift in the German government’s Africa policy. The report calls, among other things, to shift from a pure raw-material source to a strategy of providing German technology and know-how to create local manufacturing, thus building markets for German products. This intersects the wider approach suggested by the Schiller Institute, in particular in its Jan. 26 report on perspectives for EU-China cooperation in Africa. Unfortunately, the report stops short of calling for such a cooperation and instead pays tribute to EU anti-China geopolitics.

In his introduction to the report, SAPRI chairman Thomas Schaefer wrote:

“Today, Africa is demonstrating a strength in many places that once distinguished Germany: an unshakeable belief in progress, in growth through ideas, and in the courage to embrace change.

“While discussions about Africa in Germany often emphasize the risks, emerging markets are springing up on the African continent, new technologies are being applied, and a generation of young entrepreneurs is actively driving change.

“Our demand as the Sub-Saharan Africa Initiative of German Business (SAFRI) is therefore clear: Germany needs an Africa turnaround, and it needs it now.

“Politicians and business leaders should no longer view Africa primarily through the lens of migration, climate change, and the fight against poverty. Our demand as the Sub-Saharan Africa Initiative of German Business (SAFRI) is therefore clear: Germany needs an Africa turnaround, and it needs it now. Politics and business should no longer view Africa primarily through the lens of risk and development aid, but above all as a strategic market of the future.

“This shift towards Africa is not only an economic necessity—it is also a geopolitical one. In view of increasing divergences with the U.S. and China, Germany can no longer afford unilateral dependencies. Those who focus on Africa today are focusing on diversification and resilience. While this cannot replace existing partnerships, it is a strategic addition: After Asia, the continent is currently the most dynamic growth region—where we can broaden our supply chains, secure our supply of raw materials and tap into the markets of the future. This approach should be supplemented by development cooperation.”

Under the chapter “Implementing Technology Transfer and Know-How Partnerships,” the report says: “Building local value creation only works if knowledge, skills, and technologies are also available. However, many regions lack practical training, entrepreneurial know-how, and access to production-related technologies. A modern partnership must therefore go beyond traditional investment promotion and focus on genuine skills development and technology transfer.”

Notably, in the chapter “Simplify Energy Investments,” the report calls for building gas-powered plants and exercises a veiled critique to the government ban on such technologies: “If renewable energies are not yet available in sufficient quantities, the remaining demand can be covered by gas-fired power plants. By excluding this type of basic infrastructure from German guarantee instruments, African countries are denied the opportunity to obtain innovative and comparatively efficient technologies from Germany at attractive financing conditions.”