Europe’s largest economy Germany plans to make larger investments in Africa come 2023

Africa’s market potential has not gone unnoticed throughout the year. As a matter of fact, you could say the exact opposite, as foreign investors and businesses have taken note and have become fully aware of the sort of wealth the continent has the potential to generate.

As a result, Europe’s most successful economy, Germany plans to make huge investments on the continent come 2023.

The news agency, Reuters ran a poll on members of the German-African Business Association, and the results showed that 43% of these businesses are planning to increase investment in the continent. The poll also showed that 39% of of the association’s members aim to keep their spending levels in Africa stable.

The survey showed that 56% of the companies viewed their business activities in Africa in 2022 positively and a further 7% rated them “very good”.

“The majority of companies want to expand their activities in the coming year,” Association head Christoph Kannegiesser told Reuters. “It makes sense, because the continent is still on a growth trajectory.”

This decision is heavily influenced by the Russia-Ukraine war, as Germany plans to reduce its reliance on Russia’s liquified natural gas. As a matter of fact, the poll shows that the areas which most of these businesses plan to invest in are areas such as green hydrogen and liquefied natural gas. As a result, countries like Namibia and other gas rich countries would be benefactors.

“The field of green hydrogen and liquefied gas will give a new impetus in many countries,” Christoph Kannegiesser said, highlighting Senegal, Nigeria and Mauritania as countries with massive investment potential.