For many years, Africa was little more than a footnote in German politics and the public sphere. The focus was on the upheavals in Eastern Europe, Islamist terrorism and, above all, the rise of China. If anything, Africa played a role in the political discourse as a source of uncontrolled refugee flows.
A revised new Africa strategy is now intended to put relations with Africa and its 1.3 billion people on a new footing. The aim: firstly to draw conclusions from the failure of previous development policy. And second of all: China, which has expanded unprecedentedly in Africa in the last 20 years and has risen to become by far the largest single investor and trading partner, to stand up to it.
The difference in the strategies of the two countries could hardly be greater: while China is driving forward massive infrastructure projects there in return for Africa’s raw materials, but does not interfere in the internal affairs of the countries, the new German Africa strategy seems to have a much stronger focus on human rights and human rights to establish a “partnership among equals”.
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Significantly, the Africa strategy speaks of an in-depth “reflection on the consequences of the colonial era” – a topic that Foreign Minister Annalena Baerbock also emphasized on her current trip to Nigeria.
Protection of corporate risks by the state
This is also related to the new supply chain law, which from the beginning of January will require German companies to strictly comply with German standards in Africa – a Herculean task that in the past not even the German state was able to fulfill in its development aid projects. It is a truism that more and more regulation ultimately only prevents investment, especially when the competition is spared. It is no coincidence that hardly two percent of German foreign investments go to Africa.
It would be more pragmatic to secure at least part of the high corporate risks in Africa with the state. Development funds could also be used for this purpose, but their use for private-sector purposes has so far been considered sacrilegious.
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When looking at Africa, more balance and, above all, pragmatism would be necessary. Especially since Western companies are already often considered exemplary employers there – in contrast to their Chinese competitors, which are known for their rather long working hours and low wages. One indication of this is that the tone in Africa’s political debate on China has recently become noticeably harsher, also because China is skimping on debt relief.
In addition, the new German Africa strategy calls for priority to be given to promoting green energy sources such as hydrogen. Economics Minister Robert Habeck’s recent visit to Namibia was an indication of this. But here, too, one should beware of too much ideology. Such as refusing Africans to finance their own (and much needed) fossil energy projects, as is planned from 2023 onwards.
As attractive as the idea of an Africa policy guided by human rights and green energy may be, the expectations behind it are wrong: Investment decisions are not determined by ambitious government plans, but by other factors: These include an adequate market size, legal certainty, little corruption and, above all, functioning ones Administrations and courts that are the exception in Africa.
Germany’s Africa policy should act much more aggressively, particularly when it comes to establishing the institutions that are so important for a country’s development. Especially since China’s Africa policy has considerable gaps here.
More: How Germany wants to win the race with China in Africa.