German economic policy is in need of a decisive “Africa shift” in light of geopolitical tensions and critical dependencies on raw materials, the Sub-Saharan Africa Initiative of German Business (SAFRI), a paper seen by Reuters on Wednesday showed.
“Africa is not just a market for the future, but a partner for our economic resilience,” said SAFRI chairman Thomas Schaefer.
“If we are serious about diversification, raw material security and new growth areas, we must act now.”
Raw materials such as lithium, copper, and cobalt are indispensable for the transformation of the economy and SAFRI called for legally binding strategic raw-material deals with African partners to reduce dependencies on individual countries.
“Export stoppages from China are already leading to declines in production in Germany today and thus also endangering Europe as an industrial location,” the paper said.
In 2014, Germany imported 18% of its lithium batteries from China. Ten years later that had risen to about 50%.
AFRICA AS A PARTNER RATHER THAN JUST A SUPPLIER
To encourage investment, SAFRI called for a strengthening of the African Continental Free Trade Area (AfCFTA) and the implementation of EU economic partnership agreements.
“We must no longer view Africa solely through the lens of risk and development aid,” said Schaefer. “This is about a partnership-based approach with opportunities for both sides.”
REUTERS
