Green Energy in Africa: Opportunities for German Companies

There is a consensus among the participants that relations with Africa are becoming increasingly important for Germany in the changing geopolitical environment. But it is also clear that African countries have a choice of who they want to cooperate with. To be a relevant partner, Germany must make convincing political and economic offers.

Energy transition as a challenge and profitable business area

600 million people in Africa still live without electricity. That is more people than the EU countries have inhabitants. The impact of a lack of electricity on economic development is enormous. For German companies too, an inadequate power supply is one of the main obstacles to investing in African markets. Only a reliable and sustainable power supply guarantees unhindered production.

At the same time, the expansion of energy infrastructure, particularly based on renewable energies, offers great opportunities for German companies on the African continent. The energy transition creates great opportunities for German African cooperation. "German companies can provide support as suppliers of innovative and high-quality equipment," says Heike Bergmann, Senior Vice President Sales Africa at Voith Hydro.

Untapped Potential

Currently, three quarters of Africa's total electricity capacity is generated using fossil fuels. Only 18 percent of electricity comes from hydropower, and six percent from wind and solar energy. As Africa is rich in renewable energy sources, there are enormous opportunities in the expansion of renewable energies - also for German companies. This applies to hydropower, wind power, solar energy and green hydrogen. For example, only eleven percent of the potential in the field of hydropower has been exploited. With their technology and expertise, German companies can make an important contribution to meeting the demand for electricity in Africa and driving forward energy diversification in Germany.

It remains important to position Germany as a significant partner in Africa.

Background: "Spring reception in honor of the African Diplomatic Corps"

The BDI, together with the German Chamber of Industry and Commerce (DIHK), the Federation of German Wholesale, Foreign Trade and Services (BGA) and the German Africa Foundation (DAS), hosted the spring reception in honor of the African Diplomatic Corps at the Haus der Deutschen Wirtschaft.

More than 150 participants took the opportunity to meet personally with more than 30 African embassies, discuss concrete business opportunities and make valuable contacts.