German companies have honed plans to boost activities in Nigeria and other African countries next year.
According to a Reuters poll, German companies expect to capitalize on opportunities in areas such as green hydrogen and liquefied natural gas, with 43 percent planning to increase investment on the continent.
The German-African Business Association’s member survey also showed that another 39 percent of association members aim to keep their spending levels in Africa stable.
“Most of the companies want to expand their activities next year,” the association’s president, Christoph Kannegiesser, told Reuters. “It makes sense because the continent is still on a growth trajectory.”
German companies invested around 1.6 billion euros in Africa in 2021, of which around 1.1 billion euros went to the sub-Saharan region, according to data from the Ministry of Economy.
As Europe’s largest economy has been trying to reduce its dependence on Russia for gas since the invasion of Ukraine, Kannegiesser said he sees great opportunities in the energy sector 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.
Namibia could also benefit greatly from green hydrogen production, Kannegiesser said.
The survey showed that 56 percent of companies viewed their business activities in Africa in 2022 positively with another seven percent rating them as “very good.”
The association, which says it represents around 85 percent of German companies active in Africa, wants the government to provide more support through better conditions for export credit insurance and investment guarantees from the German government to ensure that African companies are not left in the hands of the United States. and china
The association has criticized a law due to take effect on January 1 that forces big business to act against human rights and climate violations, saying it is counterproductive as it creates a new layer of bureaucracy.