German Minister for Economic Affairs and Energy, Brigitte Zypries is visiting South Africa from May 3 - 7, 2017. A high-level business delegation is accompanying her. The visit is centred around the World Economic Forum on Africa. The Forum is expected to attract more than a thousand political and business leaders from Africa and the world.
Also, the Minister will open the Business Forum in Cape Town marking the 65th anniversary of the Southern African German Chamber of Commerce and Industry, hold bilateral meetings with South African politicians, and lend her support to the signing of framework agreements on future cooperation between German industry and African countries. Minister Zypries took the opportunity to present her Pro! Africa concept to African business and government representatives.
Minister Zypries said: “Both politically and economically, Africa is a continent of challenges, but particularly of opportunity. It offers great possibilities for German companies. Our Pro! Africa initiative aims to create an economic partnership of equals between Germany and Africa. We regard Africa as an equal partner. The concept is intended to generate more private-sector investment and jobs in Africa. In particular, we would like to launch a partnership for digitisation and innovation with Africa.
Digitisation, innovation and good training provide a good basis for further economic development on the African continent. We aim to allocate 100 million Euro towards this. And we are focusing our instruments to promote foreign trade and investment more on Africa with a view to supporting investors who wish to invest in a sustainable future for Africa and create jobs and value chains there. The days in which the world was divided into ‘givers’ and ‘receivers’ are over.”
The new digitisation and innovation partnership brings the innovative drive of German and African entrepreneurs together with a continental bridge for start-ups. The spread of modern digital technologies is taking place extremely quickly in many African countries. It is common for entire stages of development to be leapfrogged, e.g. in mobile banking or communications. To this end, a start-up financing fund is to be built up, offering an additional 100 million Euro. Further to this, there is also to be a new German Accelerator in Africa, and the EXIST Start-up Germany programme is to be extended to include Africa.
The targeting of the tried-and-trusted instruments of external economic promotion on Africa will give companies further incentives to invest there. Also, sectoral centres of excellence for tourism, the environment, raw materials and the water industry are to be set up. Vocational training and skills development for managers in Africa are to be strengthened. New energy partnerships will enable the Economic Affairs Ministry to support selected partner countries as they establish a sustainable, secure and low-cost energy supply.
In 2016, average economic growth in Africa stood at approx. 3.7 percent, higher than the global growth rate of 3.1 percent. The International Monetary Fund estimates that around 18 million jobs in Sub-Saharan Africa will need to be created each year up to 2035. Germany’s bilateral trade with Africa stood at approximately 41 billion Euro in 2016, and the stock of German direct investment in Africa amounted to around 9.2 billion Euro.