The German government announced that it will invest 4 billion euros ($4.37 billion) in African green energy projects until 2030, stressing that African countries should benefit more from their riches of raw materials.
Chancellor Olaf Scholz discussed the pledge at a press conference during the G20 Compact with Africa event in Berlin.
Increase the Role of African States in Technologies
The summit, which was organized by the G20 group of prominent countries, brought together the leaders of various African and European countries, with clean energy and the role it can play in developing African economies and benefiting global decarbonization being a key theme.
Several African and European leaders traveled to Berlin on the invitation of German Chancellor Angela Merkel to attend the Compact with Africa (CwA) summit.
The idea, which arose from Germany's 2017 G20 presidency, brought together leaders from the host country, Nigeria, France, Kenya, Ghana, and the Netherlands, among others, and was also attended by high-ranking delegates from the African Union (AU) and the European Union (EU).
Ahead of the summit, the German government stated that one of the main goals of the compact would be to increase the role of African states in not only providing resources for sustainable technologies but also in processing them on-site, in contrast to China's approach in Africa in recent years.
This is not about development aid according to the outdated patterns of donors and recipients," said Scholz at a speech in Berlin. "This is about investments that pay off for both sides."
China's Presence In Africa
When asked about China's substantial presence in Africa, some African leaders stated that the continent was open to different forms of cooperation.
"Our wish is for you to place your trust in us, to impose less conditions and to create the conditions together. ...Improving governance, that's our responsibility, and therefore this shared vision could allow, I'm certain of it, for a large capital that could be invested in the continent," said Moussa Faki, the chairperson of the African Union Commission.
African countries have long grumbled that while Europe talks about investment, China actually gives funding without moral equivalence. Nonetheless, Chinese lending to Africa is declining, while European interest is increasing.
The West is increasingly competing with China and Russia across the continent for geopolitical influence, crucial minerals, and new economic prospects.
"The global order is shifting and Europe and Germany can not just sit on the sidelines," Finance Minister Christian Lindner said after meeting with his counterparts from several African countries at the conference.
The G20 Compact with Africa summit was the sixth since its inception in 2017 under the German G20 chair, and it brought together the leaders of more than a dozen African countries.
Last year, Germany's commerce with Africa was 60 billion euros ($65.4 billion), a fraction of its trade with Asia but growing 21.7% from 2021.
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