Germany has decided to provide new funds to Africa to promote the energy transition on the continent, in line with the strategy of more coherent engagement adopted by the government of Chancellor Olaf Scholz.
Ahead of COP28, the annual global climate summit to be held in Dubai from November 30, Berlin has stepped up its commitment to the African continent. The coalition government is proposing 4 billion euros of public money to stimulate the ecological transition of African countries.
“We are advancing this fair energy transition with the EU and African partner countries”said Chancellor Olaf Scholz on Monday (November 20) to launch the meeting of the G20 Pact with Africa, which Germany initiated in 2017.
“The Africa-EU Green Energy Initiative is central to this, and I am delighted to announce here today that we will make €4 billion available until 2030”, did he declare. The money should be used to “advice, investments” and to facilitate private investments.
This sum is in addition to the 3.4 billion euros in European subsidies allocated to the initiative at its launch.
The sum announced by Germany represents a completely new fund. “This is not development aid based on the outdated model of donor conferences, but profitable investments for both parties”underlined Mr. Scholz.
The Association of Machinery and Plant Manufacturers (VDMA) for its part declared that it was not necessary “leave Africa to the Chinese”. Given China’s lead in supplying machinery to Africa, Germany must create a more attractive investment environment by offering cheap loans and export guarantees, the association continued.--
The stated goal of the Africa-EU Green Energy Initiative is to support the deployment of 50 GW of renewable energy and provide 100 million people with access to electricity.
The fund also includes an “infrastructure” component. Among the planned projects we find the connection of the networks of Zambia and Tanzania, as well as Angola and Namibia.
For Berlin, providing additional funds is not solely motivated by altruism. Given Africa’s significant potential in renewable energy, Germany is banking on close cooperation between companies from both countries in areas such as hydrogen.
“I am convinced that there are great opportunities to expand cooperation between German and African companies”, underlined Mr. Scholz. In certain African countries, such as Nigeria and Angola, Berlin has already established “hydrogen embassies”.
Since his inauguration, Olaf Scholz has already made three long trips to Africa. And in October, the Chancellor and German President Frank-Walter Steinmeier, as well as Development Minister Svenja Schulze, visited several African countries together.
“I think the German government takes Africa seriously”explained Rainer Thiele, professor of international development in Kiel, tagesschau.