In a landmark move, Germany has committed to investing €4 billion in Africa’s green energy sector by 2030. This decision, announced by Chancellor Olaf Scholz, reflects Germany’s dedication to fostering sustainable energy in Africa. The funds aim to enhance conditions for private sector investment and infrastructure development, aligning with the G20 Compact with Africa initiative started in 2017. Thirteen African nations are part of this initiative, benefiting from Germany’s leadership in green hydrogen projects.
According to a report by Africa Oil Gas Report, this investment not only promotes renewable energy but also seeks to enable African countries to leverage their natural resources more effectively. Local processing steps are emphasized to boost job creation and prosperity. The African Development Bank’s President, Akinwumi Adesina, highlights the need for bankable projects and strategies aligned with zero-emission goals. These steps are critical for tackling climate change, bridging Africa’s infrastructure gap, and unlocking industrial potential with significant private sector involvement.
The G20 Compact with Africa conference underscored the necessity of multilateral cooperation and a rules-based global economic system. Key discussions included global economic challenges like inflation, geopolitical tensions, and the pressing need to invest in global public goods, such as climate change mitigation, to foster a robust, multipolar trade environment.
