In an effort to help Africa benefit more from its wealth of raw materials and support Europe’s largest economy in its own transition to carbon neutrality, the German government on Monday pledged to invest $4.37 billion in African green energy projects until 2030.
Germany will need to import large quantities of green hydrogen going forward if it is to meet its goal of net zero emissions by 2045, Chancellor Olaf Scholz said at a German-African business forum in Berlin. He has made five trips to Africa since taking office in 2021.
A Brief Insight Into “G20 Compact with Africa” Summit
The forum preceded a summit of the “G20 Compact with Africa” that seeks to drum up investment in the world’s poorest but fast-growing continent by coordinating the development agendas of reform-minded countries and identifying business opportunities.
Scholz discussed the pledge concerning African green energy projects at the summit. He did not reveal any specific projects but highlighted the materials should be processed in African countries they come from. “This creates jobs and prosperity.”
As per German news agency dpa, the Compact with Africa countries include Tunisia, Togo, Senegal, Rwanda, Morocco, Guinea, Ghana, Ivory Coast, Burkina Faso, Benin, Ethiopia, Egypt and the Democratic Republic of Congo.
Is West Jostling With China For Geopolitical Influence In Africa?
European interest in the continent is rising, while Chinese lending is in decline. But African countries have long complained that while Europe talks about investment, China actually provides financing without any moral lecturing, according to Reuters.
It appears the West is increasingly jostling with China for geopolitical influence and new economic opportunities in Africa. When asked about Beijing’s strong presence on the continent, several African leaders said the region was open to other partnerships.