Germany Trails in Africa: A Strategic Wake-Up Call

Nations like China, India, and Gulf States actively engage, while Germany watches

Germany faces growing pressure to redefine its approach to Africa amid escalating global competition for markets and resources. With significant economic opportunities and geopolitical influence at stake, a lack of strategic clarity is hindering German engagement on the continent.

Calls for an “Africa Turnaround”

German Vice Chancellor Lars Klingbeil has stressed the urgent need for stronger ties with Africa, advocating for stable trade relations and mutual respect for human rights. Speaking at a G20 finance ministers’ meeting in Durban, South Africa, he highlighted shared interests in economic cooperation across the continent.

This sentiment is echoed by the Sub-Saharan Africa Initiative of German Business (SAFRI), which has called for a strategic reorientation. They argue that an “Africa turnaround” is long overdue, questioning the realism of such a renewal and identifying the obstacles.

Stagnant Trade, Missed Opportunities

Trade data reveals a sobering picture: German exports to Africa have remained stagnant for over a decade. In 2014, they were valued at €13.3 billion, rising only marginally to €14.2 billion by 2024. When adjusted for inflation, this represents virtually no growth.

Meanwhile, African economies like Tanzania, Ivory Coast, and Senegal are experiencing robust growth, fueled by rising demand for infrastructure, consumer goods, and energy. This dynamic landscape presents substantial opportunities for German exporters, but the primary beneficiaries are currently other global players.

Countries such as China, India, Turkey, and Gulf states are securing the largest contracts, with China significantly expanding its exports and investments in Africa over the past two decades. Political scientist Kai Koddenbrock from Bard College in Berlin notes, “A new race for Africa is taking place due to the relative decline of the EU and the US.”

The Global Scramble for Africa’s Resources

A key battleground is the competition for critical raw materials essential for green and digital technologies. Africa holds vast reserves of cobalt, bauxite, lithium, and rare earth minerals, vital for batteries, wind turbines, and electric motors.

China is aggressively securing access to these resources, often through long-term infrastructure projects and a clear industrial-political strategy. Even the United States, under President Donald Trump, initiated a diplomatic outreach. Germany, however, appears to be falling behind. Industry leaders are sounding the alarm, pointing to China’s dominant role in rare earth mining and refining, which has exposed Europe’s vulnerability following recent export restrictions from Beijing.

In 2022, China accounted for approximately 60% of global rare earth mining and nearly 90% of their refining capacity, highlighting Europe’s significant dependence on these critical supply chains (Statista, 2024).

Germany’s Untapped Potential

Despite the challenges, Christoph Kannengiesser, CEO of the German-African Business Association, believes Germany still has a strong starting position due to its positive reputation in Africa. He highlights that German companies often focus on greenfield investments, local partnerships, and developing sustainable structures, rather than merely extracting raw materials.

He adds that German companies are known for transferring expertise, and their approach is often perceived as unpretentious. “Especially at a time when African countries are increasingly focused on self-responsibility and industry development, which could be a decisive competitive advantage,” he told DW.

Kannengiesser urges the German government to accelerate its efforts, emphasizing the need for a coherent and ambitious Africa strategy that guides action for years to come. He points out practical hurdles such as financing, visa issues, and the lack of double taxation agreements, noting that Germany’s neighbors often find it easier to navigate these complexities.

Tom Halgasch, founder of Das Labor GmbH, which operates medical laboratories in West Africa, observes that European neighbors like Belgium, the Netherlands, and France often have smoother engagement processes. “They see economic engagement in Africa as part of their foreign policy. If, for example, a permit is not forthcoming, the embassy will take action,” he said.

Overcoming Perceived Risk

A major impediment to greater German entrepreneurial engagement is the perception of Africa as a high-risk continent. This leads to higher interest rates from banks or outright refusals of credit, particularly impacting small and medium-sized enterprises.

Andries Oosthuizen, Minister Plenipotentiary at the South African embassy in Berlin, acknowledges Germany’s strong reputation for technology and training in Africa. However, he stresses the need for investment in infrastructure to provide German companies and investors with the stability and political security they seek.

Towards Genuine Partnership?

Beyond economic engagement, a fundamental question remains: What is Germany’s desired role in Africa? Is it an equal partner, an investor, or a resource supplier?

Kai Koddenbrock expresses skepticism about promises of equal partnership, suggesting that German interests primarily lie in stable supply chains and resource access. “I consider it unrealistic to think Germany is really interested in a strong African continent which can impose higher prices,” he stated.

For investments to be equitable, they must align with the economic and political objectives of African nations, fostering local processing, industrial development, and economic independence. Koddenbrock argues, “If it is really about a partnership of equals, Europe must also be prepared to accept bloc building in the Global South and to pay higher prices for processed or finished products from Africa.” He concludes by posing a critical question: “We must ask ourselves what sort of economy we want, in Germany and also globally.”

Germany stands at a pivotal moment, with the potential to become a trusted partner across economic, political, and technological spheres. Achieving this will require more than just policy announcements; it demands concrete action and a strategic shift in approach.