Economy Minister was in Nairobi, , for the 5th German-African Business Summit on Tuesday, where he called for closer economic cooperation between Germany and Africa.
But , one of the reasons he thinks underpins the fact than only around 1% of German foreign investments go to Africa.
“The constant growth rates in this area should not blind us from the fact that there is still potential for more,” Habeck said.
“German investors need a safe and stable investment environment,” said the economy minister, who is also deputy chancellor in the outgoing government in Berlin.
These conditions were not just a basis for outside investment, but also for improving the lives of the people in Africa, he said.
If a political political system was under pressure, if nobody knows what will happen after the next elections, and whether you could rely on promises from countries, such a situation was “really poison for business,” Habeck said.
Two-yearly summit: 800 participants from 35 countries
The 5th German-African Business Summit is the largest event of its kind organized by Germany once every two years, taking place this year for the second time in Nairobi.
Roughly 800 participants from 35 countries in Africa and from Germany were in attendance.
Kenya’s Mudavadi calls for clear rules, fewer barriers to investment
The head of Kenya’s cabinet Musalia Mudavadi, whose role also incorporates the duties of foreign minister, also told the conference that capital required clear legal rules.
At the same time he criticized bureaucratic hurdles and laws that might put off investors.
“We should not have any legislation that is a hindrance to foreign direct investment in our countries,” he said.
Mudavadi said that Africa possessed “enormous potential,” much of it still untapped, in core sectors like energy, agriculture, infrastructure and industry.
Realizing this would only be possible with strong partnerships, he said.
The Kenyan leader, the head of President William Ruto’s government, praised German engagement in the country to date, saying it had “not only created jobs, but also contributed to scientific and technology transfers that are crucial to Kenya’s long-term economic development.”
Habeck: Skilled labor required, welcome in Germany
Mudavadi referred to Africa’s young and growing population, saying how important it was to create jobs for them.
Habeck, meanwhile, told attendees to perhaps consider job options in Germany, while trying to argue this did not necessarily need to lead to a so-called “brain drain.”
“It has become easier to move to Germany,” Habeck said, .
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“We do not want to take away the talents from economies here,” Habeck argued. Instead, he said, if such people moved to Germany for a few years and were to then return to Kenya bringing new skills with them, this could create a “win-win situation” for both sides.
Increasing German trade with Africa, but still room to grow
German trade volumes with Africa hit a record high of €61.2 billion ($64.5 billion) last year.
Exports were up 8.3%, to €28.7 billion, while imports from Africa fell 4.9% to €32.5 billion.
A major reason for this drop is not reduced levels of trade, but rather reduced prices for some core imports and raw materials.
msh/zc (dpa, epd)
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