Merkel Urges Companies to Switch Focus from Asia to Africa

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 30-Oct-2018

Chancellor Angela Merkel on Tuesday urged companies to take a closer look at Africa’s “huge” economic opportunities, as Germany hopes that development of the continent will help curb illegal migration to Europe.

“For many years we have been very focused on Asia. I think that in future we should turn our sights more on Africa,” Merkel said at an investment forum in Berlin, stressing Africa’s “huge potential for growth”.

The gathering, attended by leaders from around a dozen African countries, is part of Merkel’s so-called “Compact with Africa” initiative launched last year during Germany’s stint as G20 president.

The ambitious scheme aims to help African countries attract private investment along with technical and financial assistance, in return for reforms that improve the business climate, such as fighting corruption or improving rule of law.

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“It is of great interest to Europeans that African states have good economic prospects,” Merkel told the audience, which included Rwandan President Paul Kagame and South Africa’s Cyril Ramaphosa. “That requires public but especially private investments.”

Merkel has placed a strong emphasis on African diplomacy in recent months, backing efforts to boost prosperity on the continent in order to dissuade its people, especially the young, from setting off for Europe.

The veteran chancellor has come under intense pressure at home to stem the flow of migrants after the arrival of more than a million asylum seekers since 2015 deeply polarised Germany.

Most of the migrants came from conflict-torn Syria, Afghanistan and Iraq but many thousands also arrived from impoverished African countries – even though their chances of winning political asylum are slim.

Addressing the conference, Rwandan leader Kagame welcomed investments by the likes of Volkswagen and Siemens in his country, which he said had spurred interest from other foreign companies as well.

Ghana, Tunisia and Ivory Coast have together already received $414m in financial assistance under the “Compact with Africa” initiative, mainly in the form of low-interest loans.

Critics however complain that the project is not aimed at helping Africa’s poorest nations, focusing instead on countries whose living standards are already improving – and are a more interesting destination for export champions like Germany.

Der Spiegel weekly also slammed the conference for putting business above politics by inviting autocratic leaders such as Egyptian President Abdel Fattah al-Sisi “who has thrown thousands of regime critics in jail and suppressed civil society”.

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