On October 18, 2021, the chair of the House Ways and Means Committee stated that…
Germany is preparing a new African strategy to rival China.
Germany is ready to compete against China in the search for energy, raw materials, and new markets by developing a new strategy for the African continent.
The capital crisis, the drought, and the constant domestic unrest on the “Dark Continent,” which is known for its poverty, make Africa’s quest for industrialization challenging, but the vast mineral riches and young population continue to draw the attention of the wealthy countries.
The competition between nations also rises as a result of the rising interest in the continent.
It is interesting that recent years have seen a surge in Chinese, Turkish, Italian, and Indian investments in African nations.
On the other hand, other nations, like Germany, are creating fresh plans to expand their influence across the continent.
However, barely 1% of the €163.7 billion (USD173 billion) in international investments made by German businesses last year were on the African continent.
Around 76 percent of the German capital in 2021 went to nations in Europe, with the Americas coming in second with 9 percent and Asia coming in third with 13 percent.
According to Handelsblatt, one of Germany’s most prestigious financial publications, the country plans to replace the “Marshall Plan with Africa” with a new strategy to maintain its competitive position against China in the race for Africa.
According to the financial publication, Svenja Schulze, minister of economic cooperation and development, will introduce the new strategic plan in January.
By enhancing its soft power, Germany hopes to defend itself against international crises.
Germany’s latest draft strategy for the continent names Turkey and Gulf states as “rivals” in addition to China and Russia. China has often used its investment and lending influence in Africa by persuading the region’s nations to vote in its favor at the United Nations.
The draft strategy emphasizes how these nations are putting money into infrastructure, working to gain access to markets and raw supplies, and trying to gain more political sway.
In the meanwhile, Germany’s Economic Cooperation and Development Ministry anticipates that a strong collaboration with Africa would support Germany’s energy transition and need for qualified people.
In order to support its national hydrogen plan, Germany also aims to encourage environmentally friendly hydrogen production in Africa and the growth of regional hydrogen economies.
German businesses lack direct access to vital minerals like cobalt, which is used in electric car batteries, while China has a say in these matters.
Additionally, the nation intends to take advantage of private investment opportunities in Africa, particularly in the energy and infrastructure sectors.
Germany’s position is strengthened and it takes the lead among EU nations who are interested in the continent due to the presence of significant infrastructure and energy firms.
Germany intends to assist African nations financially.
There are worries that the debt burden placed on African nations may impede the critically required investments as many African nations become increasingly reliant on China for loans.
Germany intends to offer budgetary support to African nations to make it simpler for them to pay their obligations.
The nation intends to adjust its approach to immigration in a very obvious way. Future legal immigration alternatives from African nations will be a key component of the new approach.
Germany wants to distinctly shift its approach to immigration. Future legal immigration alternatives from African nations will be a key component of the new approach.
For this reason, “migration and development centers” with an emphasis on “regular worker migration to Germany and Europe” will be established in several African nations.
The advancement of the Skilled Immigration Act’s implementation will also benefit from this.
In terms of surface area, the continent of Africa is three times bigger than Europe and 85 times bigger than Germany. There are 3,000 separate ethnic groups and languages on the 54-nation continent.
Africa boasts the greatest agricultural fields in the world, along with abundant oil and gold reserves, and more than half of its 1.4 billion people are under 30.
By 2050, the population of the continent is projected to quadruple, posing both opportunities and difficulties.
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