The German government has committed to investing 4 billion euros in Africa’s green energy initiatives by 2030.
Chancellor Olaf Scholz unveiled this pledge in Berlin following discussions with African leaders, including Akinwumi Adesina, President of the African Development Bank Group, at the G20 Compact with Africa conference.
Initiated by Germany in 2017, the Compact aims to enhance conditions for sustainable private sector investments and infrastructure development in Africa.
As of now, 13 African countries have joined the initiative, signaling a collaborative effort to foster economic growth and address climate challenges.
Chancellor Scholz highlighted the conference’s significance as a catalyst for stronger cooperation between Africa and Europe, particularly in realising a climate-friendly energy supply based on green hydrogen.
The Chancellor assured African leaders that Germany would be a reliable buyer of green hydrogen, promoting local processing of natural resources to create jobs and prosperity in African nations.
Describing Africa as “the partner of our choice,” Scholz underscored the need for fair cooperation to ensure sustainable development.
At the conference, Dr Adesina advocated for stronger partnerships and investments in Africa, stressing the continent’s status as the world’s fastest-growing region.
He praised Chancellor Scholz for convening the Compact with Africa Conference and reaffirmed the African Development Bank’s commitment to promoting private sector development in Africa.
Dr Adesina outlined key actions for multilateral institutions, including developing bankable projects, aligning private sector strategies with net-zero emission goals, and mitigating global risks through initiatives like the Africa Investment Forum.
He expressed eagerness to strengthen the strategic partnership with Germany to foster economic growth and prosperity in Africa.
Beyond financial commitments, discussions at the G20 Compact with Africa conference addressed global economic challenges, climate change, trade resilience, and multilateralism.
Chancellor Scholz emphasised Germany’s commitment to enhancing global trade, improving economic resilience, and reforming the international financial architecture.
On the sidelines of the conference, Dr Adesina announced plans to establish an executive advisory body dedicated to nurturing young African entrepreneurs and startups.
Recognising the importance of revamping the financial ecosystem to cater to their needs, he expressed a commitment to leverage the experiences shared by young entrepreneurs.
In a session titled ‘Shaping the Future with Africa—Young Entrepreneurs as Key to a Just Transition,’ Adesina engaged with 40 young African entrepreneurs and innovation champions.
The G20 Compact with Africa conference brought together prominent leaders, including President Emmanuel Macron of France, President Ursula von der Leyen of the European Commission, and representatives from the World Bank and International Monetary Fund.
The discussions addressed various global issues, reinforcing the importance of multilateral cooperation and a fair, rules-based international economic and financial system.