Africa offers solutions for current crises

Düsseldorf, 06/12/2022: The newspaper Handelsblatt has published a guest article by Stefan Liebing on Africa’s ability to cope with crises in Germany and Europe.

The continent has raw materials, space and sun for renewables, as well as a good infrastructure in the north. Policymakers should facilitate investments there, demands Stefan Liebing.

He sees good opportunities in the delivery of wind and solar power in the form of green hydrogen from Africa to Europe.
But the greatest potential, in his opinion, lies in the development of alternative value chains, which could achieve the industrial diversification that has become so important for German companies after Corona.
Raw materials from West and Central Africa, green hydrogen from wind- and sun-rich countries in southern Africa and production facilities in North Africa.
Northern Africa already has a well-developed infrastructure that companies can use to deliver goods to Europe at cheaper logistics costs. Labour costs are also low and some medium-sized companies are already looking to move their production from China to Morocco.

Although political risks are easily insurable and the economic framework conditions are often better than expected even after the Corona crisis, the biggest problem still lies in financing. German SMEs can contribute significantly to the development of the African continent by investing and creating jobs. However, risk capital, security and guarantees are necessary for this.
Therefore, Liebing calls for a new approach in foreign trade and development policy.