Under the leadership of Matthias Wachter, BDI Head of Department and Managing Director of the BDI NewSpace Initiative, BDI is intensifying its commitment to Africa and NewSpace. The "14th NewSpace Breakfast" in Berlin took place under the motto "NewSpace goes Africa". Matthias Wachter summarizes his impressions.

"The German economy is facing major challenges today," says Heinz-Walter Große, chairman of the Sub-Saharan Africa Initiative of German Business (SAFRI), at the spring reception in honor of the African Diplomatic Corps in Berlin. Große emphasizes the need to develop alternative sources of raw materials and energy as well as new sales markets.

The view that Africa needs our support is deeply rooted. "But Germany needs Africa more than the other way around," says Wolfgang Niedermark, member of the BDI Executive Board at the G20 Investment Summit 2023 in Berlin. There is great potential for more German-African cooperation in the areas of hydrogen, future technologies and raw materials.

Africa is a “must” for German companies in terms of greater diversification and reduction of dependencies - especially on China. We therefore need a new start in German-African relations. Innovative approaches and greater use of new technologies are necessary.

Germany's strong presence on international markets is an important success factor for German industry. At the same time, the BDI is warning against German companies becoming too dependent on developments on the Asian markets. To diversify supply chains and investments, it is worth looking to Africa.

For Africa's successful economic recovery, more investment and trade between Africa and Europe is needed. "Focusing on private sector involvement is the right approach. More private investment is the key to sustainable economic development on the African continent," says Wolfgang Niedermark, member of the BDI Executive Board at the G20 Investment Summit. The Pan-African Free Trade Area is crucial here.

The Corona pandemic poses major challenges for German and African women entrepreneurs in equal measure. Many companies are experiencing financial difficulties and even have to close down. But can the crisis also give the starting signal for a positive development? Many companies are currently taking important steps toward digital transformation.

Africa has been on the rise for two decades - the pandemic abruptly interrupted this. "Digitalization can make an important contribution to mitigating the consequences of the Corona crisis," emphasizes Matthias Wachter, BDI Head of Department for International Cooperation, Security, Raw Materials and Space Travel.

Prior to the outbreak of the corona pandemic, Africa was considered as a place with a promising future - with a growing middle class, booming trade and, in some countries, disproportionately high growth rates. But will the corona virus change Africa's potential for prosperity?

"Europe has to adopt a completely new attitude towards Africa," emphasizes the former German President Horst Köhler at the joint event by the Federation of German Industries (BDI) and the German Africa Foundation (DAS). Africa is a continent with its own visions and responsibility. But will it be possible to break out of old patterns?

Africa is booming. After Asia, the continent is the fastest growing region in the world. Many African economies are currently recording growth rates far above those of developed industrialized nations. To tap the potential, stable companies and decisive action by African governments are needed to create better framework conditions. 

Women entrepreneurs can make an important contribution to economic development in Africa. In Ghana, for example, 46.4 percent of companies are in the hands of women. However, most of these companies are small one-woman companies, while only nine percent of all African start-ups are run by women. What can be done to better support women? We spoke with 27-year-old Oleado Osoka, CEO Ghana of the German/African energy supplier Daystar Power.

In 2018, the German Chancellor Angela Merkel promised one billion Euros for companies investing in Africa. A lot has happened since then: The Development Investment Fund provides 800 million euros for German and African companies. The Ministry of Economic Affairs is expanding foreign trade promotion for companies doing business in Africa. But there is still room for improvement.

The Economic Partnership Agreements (EPAs) are crucial for promoting trade between Africa and the European Union. Recently, implementation came to a hold. One key argument has been that the EPAs are redundant due to the African Continental Free Trade Area. But it is very doubtful that a free trade agreement with the African Continental Free Trade Area could be successful within the foreseeable future.

Investments worth over 225 billion shilling (two billion euros) in over 200 companies in Kenya benefit nearly four million people. Most of them are women and young people who currently derive their livelihoods directly or indirectly from enterprises exporting to the EU in floriculture, horticulture, agro-processing, and fisheries. This is only one reason for Vimal Shah, CEO of Bidco Africa, calling for the implementation of the Economic Partnership Agreement (EPA) between the EU and East Africa.

“Africa rising” instead of “hopeless continent” – Africa is changing! It is time to start viewing the continent as a promising economic partner and future market rather than merely the recipient of development aid. This is what motivated the BDI to formulate its first wide-ranging strategy for Africa: “Strategy Sub-Saharan Africa: Africa – Continent of opportunities”.