As Africa
continues its strong economic growth, a growing number of German companies are
looking at investing in the continent amid growing international competition
for Africa’s resources and markets.
German
firms are increasingly doing business in Africa. The German-African Business
Association, which promotes trade and investments in Africa, now has nearly 700
members, including global companies such as Siemens and steel giant
ThyssenKrupp.
But it is
medium-sized enterprises, some of whom have been dealing with Africa for
decades, which are responsible for the bulk of German trade with African
countries.
However,
Germany needs to make sure it doesn't get left behind.
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| China has become Africa's biggest trade partner |
Competition
to do business in Africa is stronger today than ever before, the chairman of
the German-African Business Association, Stefan Liebing said in an interview
with DW. He pointed out that public and private companies from China, India and
Brazil are becoming increasingly involved in the continent.
German
companies with no experience of the African continent can dread the risks they
associate with Africa, Liebing noted. In addition, German products can be too
costly for developing countries that often opt for cheaper goods.
"Everywhere
you go in Africa, you hear that German quality and technology is appreciated
but the German products are often more expensive," Liebing said.
Thirst for
know-how
As well as
products that are tailored to the African market, Africans are also interested
in projects that involve knowledge transfer.
Whoever
delivers the technology should also educate and train Africans. An example is
the renewable energy sector, which is going to be vital in building a reliable
future energy supply in Africa according to Nigeria's minister for Science and
Research, Okon Ita Bassey Ewa. During a recent visit to Germany, Bassey Ewa
spoke of his desire to set up partnerships between Nigerian and Germany,
especially between universities.
![]() |
| Demand for energy is drawing many to Africa |
"This
could lead to Nigerians coming to Germany to study how to build solar
cells," the minister said during a recent visit to Germany.
In addition
to renewable energy, several African countries are also looking towards Europe
to provide them with nuclear power know-how.
Even though
nuclear energy has become increasingly unpopular in Germany, Bassey Ewa said
Germany would be a welcome partner in achieving Nigeria's nuclear power
ambitions.
Made in
Africa
Many
African states have been pushing to better utilize their resources by employing
more local staff, producing technical equipment or processing raw materials
locally. This is especially true in the oil and gas sector.
Siemens is
preparing to raise its 'local content' in African countries such as Ghana,
Angola and Nigeria in the coming years to almost 90 percent.
The German
power-plant builders could even imagine Nigeria producing its own turbines at
some point.
"We
are now investing in a workshop to repair turbines; this is a first step toward
production," said Toyin Abegunde, Siemens head of personnel development in
Nigeria. "If we can successfully repair turbines in Nigeria then we could
produce the next few components of the turbines on site."
The next
step perhaps would be the entire production process taking place in Nigeria,
she said.
Home-grown
leaders
Siemens is
also seeking to employ more local people in management positions. Toyin
Abegunde is a good example - a German had previously occupied her post.
![]() |
| More Africans are taking business leadership roles |
To develop
qualified staff, Siemens in Lagos has established a training academy, which
runs a six-month career program for youth.
"Twenty
university graduates are receiving training on energy technology," Abegunde
said. "We are committed to hiring two or three of them, provided they show
excellent performance."
The Siemens
spokesperson believes all sides benefit from highly trained indigenous people,
since expatriates from industrialized countries are often very expensive to
hire. And many foreign companies find it hard to send expatriates to some
African countries due to security reasons.
Author: Thomas Mösch / cm
Editor: Susan Houlton
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