German Capital, Technology to Increase in Africa’s Energy Sector
This week, the Germany-Africa Business Forum (GABF) is organizing an exclusive webinar to encourage new deals between German and African public and private energy stakeholders. This is an extremely timely initiative. Covid-19 has accelerated several major trends and dynamics within Africa’s energy sector which are set to significantly increase the demand for German capital and technology on the continent.
Energy has been identified by most African governments and financial institutions as a key sector able to support Africa’s economic recovery post-Covid-19. In parallel, global trends toward a cleaner energy transition are now accelerating and Africa is no stranger to the game. The reshaping of the continent from 2021 onwards provides a great opportunity for German companies and technology to fight energy poverty in Africa and support the natural gas monetization and valorization drive from Mozambique to Senegal, Nigeria, Equatorial Guinea and Tanzania.
“The African Energy Chamber is calling on Germany to work with African businesses to lower carbon emissions and support Africa’s path to a net zero future. From gas flaring to gas-to-power and cleantech, Germany has the capital and technology Africa needs to build an inclusive and sustainable energy future,” declared Nj Ayuk, Executive Chairman at the African Energy Chamber.
By engaging not only with African governments but with the continent’s entrepreneurs and private companies, German stakeholders can structure the deals who will ensure a successful future for the German-African energy cooperation. German technical know-how and technology is increasingly looked after when it comes to assessing climate change risks and opportunities in business planning, and supporting public policies embracing decarbonization.
Germany’s appetite for Africa has already translated into landmark projects and deals across the continent. In West Africa, Siemens is currently supporting Nigeria in raising its electricity capacity of 25GW under the country’s Presidential Power Initiative. Meanwhile, Voith Hydro and the Commerzbank recently joined Angola’s Caculo-Cabaça Hydropower hydroelectric project to support CGGC in completing the 2172MW power facility by 2024. An increasing number of German SMEs are also involved in landmark gas and power projects, including the Akinokien LNG receiving terminal in Equatorial Guinea.
“We need to foster a candid and constructive dialogue with a broad range of German and African stakeholders on investment, energy poverty, the creation of an enabling environment for private businesses and the implementation of free market policies that benefit the poor and emerging African middle class,” concluded Nj Ayuk.