Berlin – “An action plan does not automatically translate into business orders. What matters is whether political commitments lead to funded projects, investment and jobs,” says Claudia Voß, CEO of the German-African Business Association (Afrika-Verein).

One year ago, Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) unveiled its Action Plan “Strong Partnerships for a Successful Global Economy”. Since then, nine priority countries have been selected, including four African nations, dialogue with the private sector has been intensified, and important steps have been taken. These include the 11-point plan to reform procurement practices, developed jointly with the Federal Ministry for Economic Affairs and Energy (BMWE), as well as new financing instruments such as TradeConnect and SCALED.

The German-African Business Association welcomes this closer alignment of development cooperation and foreign trade promotion. It reflects a growing recognition that private-sector investment is essential to sustainable growth and job creation.

The real test, however, lies in implementation. There is still a lack of concrete evidence of additional investment and business contracts. In Africa in particular, inadequate project preparation, high financing costs and insufficient risk mitigation remain major barriers to investment. Addressing these challenges will require a robust pipeline of bankable projects, financing solutions tailored to the needs of small and medium-sized enterprises, and better coordination between development finance, export credit guarantees and European financing instruments.

“We don’t need more funding schemes. We need bankable projects. And we need to stop viewing Africa primarily through the lens of risk and start unlocking its economic opportunities,” Voß says.

At the same time, German business interests and African development priorities must go hand in hand. Local value creation, technology transfer and quality employment are just as important measures of success as new contracts for German companies.

“The success of the action plan will not be measured by the creation of new structures, but by whether we succeed in building greater economic opportunities and a more prosperous future together with our African partners,” Voß concludes.

Contact person: 
Martin Rambach
rambach@afrikaverein.de
+49 170 3711310