G20-led summit renews interest in Africa’s growth

African leaders are heading to Germany on Monday, 20 November, for the G20 Compact with Africa conference, that seeks to boost private investment in the world’s fastest-growing continent.

European Commission President Ursula von der Leyen, French President Emmanuel Macron and Dutch Prime Minister Mark Rutte are among the attendees of the summit in Berlin, which is hosted by German Chancellor Olaf Scholz and reflects their growing interest in Africa.

As Europe and the United States jostle with Russia and China for geopolitical influence, critical minerals and new economic opportunities in Africa, which has the second largest population in the world. 

That also includes Africa’s potential for renewable energy production, especially green hydrogen, which could aid its northern neighbor’s shift towards a carbon-neutral economy. Moreover, the continent’s stability and prosperity are crucial to reduce illegal migration. 

The Compact with Africa, set up in 2017 under the German G20 presidency, aims to unite reform-minded African nations, international organizations, and bilateral partners to align development agendas and explore investment opportunities.

Last year, German trade with Africa totaled €60 billion ($65.4 billion), a fraction of its trade with Asia but up 21.7 percent  from 2021.

According to a study conducted by KPMG and the German-African Business Association, nearly two-thirds of German companies seek to expand their operations in Africa.