AfDB President Urges Stronger Partnership as Germany Commits 4 Billion Euros to Africa’s Green Energy

German Chancellor Olaf Scholz has pledged a substantial investment of 4 billion euros into Africa’s green energy initiatives by the year 2030. This announcement came following a meeting between Scholz and various African leaders, including the President of the African Development Bank Group, Dr. Akinwumi Adesina, during the G20 Compact with Africa conference in Berlin.

Initiated by Germany in 2017 during its G20 presidency, the Compact with Africa aims to enhance conditions for sustainable private sector investment and infrastructure development across the continent. Presently, 13 African countries are part of this initiative, focusing on fostering economic growth and investment opportunities: Benin, Burkina Faso, Côte d’Ivoire, the Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo, and Tunisia.

Chancellor Scholz emphasized that the conference marked the beginning of a robust partnership between Africa and Europe to establish a climate-friendly energy supply, particularly centered around green hydrogen. He assured African leaders of Germany’s commitment as potential buyers of green hydrogen produced by African countries.

Describing Africa as a key partner, Scholz advocated for local value addition to natural resources, emphasizing the creation of jobs and prosperity through localized processing.

Dr. Adesina, in alignment with the conference’s focus, stressed the significance of private sector development in Africa and commended Chancellor Scholz for convening the Compact with Africa Conference. He emphasized the African Development Bank’s dedication to the initiative, especially in promoting private sector growth across the continent.

Adesina outlined the necessity of attracting substantial private sector financing to address climate change, Africa’s infrastructure deficit, and industrial manufacturing gaps. He highlighted actions required by multilateral institutions to achieve these objectives, including developing viable projects, prioritizing green investments, and optimizing investment strategies through platforms like the Africa Investment Forum.

The G20 Compact with Africa conference extensively discussed various global economic issues, prioritizing multilateral cooperation and a fair international economic and financial system. Chancellor Scholz reiterated Germany’s commitment to enhancing global trade, economic resilience, and reforming the international financial architecture.

Adesina, in a separate session, unveiled plans to establish an executive advisory committee dedicated to supporting young African entrepreneurs and startups, aiming to revamp the financial ecosystem to cater to their needs.

Throughout the conference, Adesina engaged with numerous leaders and stakeholders, including heads of states and key international organizations, discussing strategies to drive economic growth, address challenges, and promote multilateral cooperation on a global scale