Germany pledges to invest 4.4 billion USD in Africa-EU Green Energy Initiative

Germany pledges to invest 4.4 billion USD in Africa-EU Green Energy Initiative

The German government pledged to invest four billion euros in the Africa-EU Green Energy Initiative until 2030, with Chancellor Olaf Scholz saying that African countries should benefit more from their wealth of raw materials.

Scholz discussed the pledge at a news conference on the G20 Compact with Africa summit in Berlin. He did not mention any specific projects but said the materials used in green energy should be processed in the African nations they come from.

“This is about investments that pay off for both sides,” Scholz told delegates. “For example, on the road to climate neutrality in 2045, we in Germany will need large quantities of green hydrogen and will import a large proportion of it from Africa,” he stated.

Compact with Africa is based on an initiative launched by Germany during its chairmanship of the Group of 20 leading rich and developing nations. It aims to enhance economic conditions in participating countries, making them more attractive for foreign private investments. ‘Africa is our partner of choice when it comes to intensifying our economic relations and moving toward a climate-neutral future together,’ he said.

Moussa Faki, the chairperson of the African Union Commission, welcomed the initiative, stating, “The African continent is open to different partnerships,” while emphasizing the shared responsibility of improving governance. He expressed confidence that this vision would attract significant capital investments in the continent, contributing to its economic growth and sustainability.