16.10.25 - The Sub-Saharan Africa Initiative of German Business (SAFRI) calls for a bold "Africa turnaround". In light of growing geopolitical tensions, critical dependency on raw materials, and a youthful, dynamic population in Africa, Germany must realign its Africa policy—with clear priorities and measurable steps. Currently, only about one percent of German direct investments go to Africa, and less than two percent of exports are directed to the region. "Africa is not only a market for the future but also a partner for our economic resilience. If we are serious about diversification, resource security, and new areas for growth, we need to act now," emphasises Thomas Schäfer, Chairman of SAFRI.

Africa as a Resource Partner: From Dependency to Partnership 

Resources like lithium, copper, or cobalt are indispensable for European economic transformation. SAFRI therefore calls for legally binding strategic resource agreements with African partners to provide companies with more planning security. The goal is targeted diversification of supply chains to reduce dependence on individual countries—particularly China.

At the same time, the resource and circular strategy must be more closely integrated. Bureaucratic hurdles in recycling should be dismantled and research in circular economy strengthened. Schäfer underscores: "Africa has significant reserves. We should be partners in local processing – not merely buyers of raw materials."

Facilitating Investments: Less Risk, More Opportunities 

A major obstacle for German companies in Africa remains financing. SAFRI therefore advocates better alignment of government guarantees and credit coverages to the realities of African markets and lowering deductibles for Hermes coverages.

Flexible financial instruments like ImpactConnect for smaller investments and TradeConnect for trade financing are urgently needed. Additionally, expanding double taxation agreements with African countries is critical to facilitate planning security. Schäfer adds: "If we are to make German businesses competitive in Africa, we shouldn't burden them with unnecessary risks and bureaucracy."

Free Trade as a Key to Growth 

Clear rules are needed for bold investments. SAFRI calls for strengthening the African Continental Free Trade Area (AfCFTA) and implementing the EU Economic Partnership Agreements with Africa (EPAs).

Furthermore, government risk coverage for companies must be improved—such as through more competitive export credit and investment guarantees. Development cooperation should be better intertwined with foreign trade promotion. Schäfer emphasises: "We must stop viewing Africa purely through the lens of risk and development aid. It is about a partnership approach—with opportunities for both sides."

Producing Instead of Just Importing: Strengthening Local Value Creation 

Africa should not only be a supplier but also a partner in industrial development. SAFRI focuses on building regional industrial hubs and targeted technology transfers. Know-how partnerships, hands-on training, and shared production networks are key to creating local value and integrating German companies into regional supply chains. Schäfer explains: "Local processing and training are not development aid, but investments in future markets—with clear advantages for both sides."

Digitisation as a Growth Driver for Both Sides 

Africa's future also hinges on digital. SAFRI calls for a clear focus by the federal government on expanding digital infrastructure to lay the foundation for technologies like artificial intelligence or smart farming locally.

Additionally, the EU's Global Gateway initiative should be simplified to ensure funding reaches projects effectively, alongside targeted investments in energy and internet infrastructure. The planned EU satellite constellation must also cover African countries. Schäfer states: "Be it raw materials, local value creation, or the digital economy: those who invest in Africa today secure not only new markets but also the future of our industry."

Background 

SAFRI is supported by the German Business Association for Africa (AV), Federation of German Industries (BDI), Federation of Wholesale, Foreign Trade, Services (BGA), and the German Chamber of Commerce and Industry (DIHK). The initiative aims to intensify economic relations between Germany and Sub-Saharan Africa and assist companies in market entry.

Further information can be found at Shaping Africa's Future as well as at www.safri.de.