Germany's Strategy for Africa

1. Initial Engagement and Institutional Foundations (1990s–early 2010s)

From the post-Cold War period through the 2000s, Germany shifted from its traditional development aid-centered engagement to strengthening economic cooperation and institutional partnerships. Integrated into the EU framework, this was complemented by the strengthening of infrastructure and economic institutions.

To address Africa's diverse needs, the German government has also worked to build a foundation for public-private partnerships at an institutional level.

The initial period of institutional foundation building was an era of creating an environment for German companies to enter the market. As regulatory and institutional reliability improved, the foundation for subsequent economic cooperation was formed.

2. Marshall Plan with Africa and Compact with Africa (2017–2020s)

Germany launched the "Compact with Africa" initiative during its G20 presidency (2017), focusing on improving the investment climate and job creation in African countries.

This is a policy package in which the German government and international financial institutions (such as the African Development Bank) collaborate to create a framework for regulatory reform and the expansion of private investment.

The Marshall Plan with Africa, discussed during the same period, drew attention as a strategy that integrated German development aid with trade and investment promotion.

A framework aimed at improving the investment climate has been established, and support for German companies entering the African market and risk reduction are underway.

3. Renewal of Policy Guidelines (2019–2025)

In 2019, the German Federal Government formulated the Africa Policy Guidelines, and based on them, deployed a policy system that integrated diplomacy, economy, and development.

The main priority areas are peace and stability, sustainable economic development, trade and investment expansion, strengthening democratic institutions, and migration and refugee management.

Subsequently, in January 2025, new government Africa policy guidelines were approved by the cabinet, and the strengthening of cooperation with the EU and the African Union was also clearly stated. This includes 21st-century cooperation areas such as digital transformation, AI and advanced technology cooperation, and climate change response.

The scope of cooperation has expanded from traditional infrastructure and development support, and market opportunities in digitalization, technical cooperation, and environmental fields are being created.

4. BMZ (Federal Ministry for Economic Cooperation and Development) Africa Strategy (2023–)

In 2023, Germany's Federal Ministry for Economic Cooperation and Development (BMZ) announced a new Africa Strategy, positioning support for Africa as a two-way strategic partnership. The policy sets out the following three major goals:

• Structural support linked to the African Union's (AU) Agenda 2063

• Jointly addressing global challenges (climate, environment, health)

• Strengthening collaborative crisis response and security support

This strategy emphasizes human-centered development, such as sustainable job creation and economic development, strengthening social protection, and building health systems.

Economic cooperation is shifting toward a focus on social and environmental sustainability, and the ESG (Environmental, Social, and Governance) perspective is becoming important in investment strategies.

5. Public-Private Partnership and Investment Promotion (Mid-2020s)

The German government is deploying investment guarantee schemes and public-private partnership frameworks as measures to promote investment in Africa. The investment guarantee scheme for countries participating in the Compact with Africa functions as an institutional mechanism to reduce the risks for German companies entering Africa.

In addition, industry associations such as the Afrika-Verein der deutschen Wirtschaft (German-African Business Association) are collaborating with the government to deepen economic relations through events, conferences, and corporate networks.

Strengthening public-private partnerships promotes an increase in practical market entry opportunities, including for small and medium-sized enterprises (Mittelstand), and facilitates network building.

Outlook for 2026 (Germany's Strategy for Africa)

① Deepening Strategic Partnerships
Germany is strengthening its policy framework to position Africa not merely as a recipient of aid, but as a common strategic partner. In particular, through alignment with the AU Agenda 2063 and participation in the EU's Global Gateway strategy, cooperation in infrastructure, digital connectivity, and climate response is likely to expand.

② Qualitative Shift in Economic Cooperation
Trade and investment cooperation is expected to move from a focus on infrastructure and development support to localization of value chains, technology transfer, and investment in digital and green sectors. This represents high-value-added market opportunities in Africa for German companies.

③ Resource Security and Supply Chain Diversification
Recommendations have emerged from Western companies and the business community to diversify sources of raw materials and resources and to strengthen strategic cooperation with Africa. This relates to securing a stable supply of raw materials necessary for the green transition, such as lithium, copper, and cobalt.

④ Integration of Security and Development
The German government continues its approach of integrating peace and security support with development cooperation, and it is expected that business risk assessment will become important in unstable regions such as the Sahel.

Key Points from a Business Perspective

The direction of Germany's Africa strategy is a comprehensive partnership that integrates diplomacy, development, and the economy. There is a growing stance of not just providing aid, but building private investment and fair trade relations while solving common economic and social challenges.

As for policy risks, revisions to development budgets or a shift toward prioritizing security could impact the business environment in the short term.

German companies are required to map out entry strategies for medium- to long-term growth sectors such as raw material supply, renewable energy, and digital solutions while assessing alignment with public-private partnership frameworks (investment guarantees, Compact with Africa) and EU strategies (Global Gateway).

Good luck!!