At the 8th Meeting of the Africa Partnership Forum the Chancellor called on the international community to deliver on its promises to Africa. "We must demonstrate our reliability and trustworthiness," said Merkel. The problems facing the continent can only be resolved by working together, she pointed out. The consequences of war and epidemics in Africa also affect Europe, she continued. Not least, because of its geographic proximity, Europe bears a major responsibility for the African continent. Sustainable investments benefit both sides.
Germany doubles aid for Africa
Photo: REGIERUNGonline / Steins
Wieczorek-Zeul and Merkel at the ForumThe Chancellor hopes that the Africa Partnership Forum will provide positive impetus for the G8 Summit to be held at the beginning of June in Heiligendamm. The Forum is organised by the Organisation for Economic Co-operation and Development (OECD) and the pro-reform African states, which have together founded the initiative, New Partnership for Africa's Development (NEPAD). The Forum will look at the political, economic and societal aspects of development.The invited guests include the Personal Representatives for the G8 Africa process from the G8 countries, including the Federal Minister for Economic Cooperation and Development, Heidemarie Wieczorek-Zeul, representing Germany. With two weeks to go before the G8 Summit, the Africa Partnership Forum is to give "a clear signal of support for the reform partnership with Africa," according to the Minister. Germany will deliver on its pledge to double the aid it accords Africa by 2010. The G8 states decided on this two years ago.
Good governance attracts investors
The German World Bank Forum is also looking at how German businesses and organisations in Africa can foster sustainable development. "The key to Africa's development is economic growth, which also benefits the poor," declared Federal Minister for Economic Cooperation and Development, Heidemarie Wieczorek-Zeul.
Numerous multipliers from the realms of politics, economics and civil society in Germany are taking part in the World Bank Forum. Foreign guests include the winner of the 2006 Nobel Peace Prize Muhammad Yunus. In 1983 the economist from Bangladesh founded the Grameen Bank, or village bank, which provides micro-loans for poor micro-entrepreneurs who have no collateral to offer, thus encouraging economic development.
Less than 2 percent of global foreign direct investment is attracted to Africa. "That is not enough," declared Wieczorek-Zeul at the World Bank Forum. More and sustainable investment is necessary and possible, she went on. "Germany and the G8 nations are supporting pro-reform African states within the framework of a partnership for development, which is laying the foundations for more and sustainable investment: good governance, adequate infrastructure and anti-corruption drives," continued the Minister.
Signs of growth ahead
Africa offers German businesses in particular a wide range of business opportunities. Many states have chalked up growth rates of between 4 and 6 percent over the last years. And political stability is improving in many places.
Photo: REGIERUNGonline/Steins
Merkel calls for greater involvement in AfricaNevertheless, it is the images of crises and conflict which still shape the popular perception of the African continent. "It is very important to point out that this does not reflect the reality," said the Chancellor. "The reality of Africa is much more differentiated: the number of conflicts in Africa has been declining for some years now. There are more democratic elections, and peaceful hand-overs of power." And it is not only the resource-rich countries that are seeing their economies expand rapidly. It is the declared goal of the G8 Summit under the German Presidency to change the way our neighbouring continent is perceived, and market it as an attractive location for investment.You must sow before you can reap
The ways that German businesses can actually use this improved climate for investment and business is the topic of the Africa Business Day at the World Bank Forum. But the World Bank is not planning a one-way deal: African businesses too are interested in exploring the opportunities offered by the German and European markets.
The Africa Business Day is being organised by the Federation of German Industries (BDI), the Association of the German Chambers of Industry and Commerce (DIHK), the German Africa Association, the Federal Ministry for Economic Cooperation and Development, and the World Bank.
The Chancellor had already called on German industry the previous day. "Africa is a continent with an unbelievable development potential," she declared and called on businesses to step up their engagement on our neighbouring continent. "Entrepreneurs who accept Africa as a good place to invest, will reap the fruits of this engagement tomorrow," Merkel declared confidently in talks with representatives of industry.
And this was confirmed by someone who ought to know. In Africa, there is indeed, "a sound upward trend, with many positive examples," agreed Jürgen Schrempp. The former head of Daimler is today Chairman of the Southern Africa Initiative of German Business (Safri).
