German Trade and Investment in Africa: Geoeconomics, Regional Complementarities, and Domestic Resource Mobilisation

The author argues that Germany is struggling to balance its 'exportist' economic model and corporate interests with a more recent emphasis on a 'rules-based order' and human rights in its foreign policy. Historically, German engagement in Africa has been characterized by a light footprint and a focus on extracting raw materials, such as oil and minerals. The paper suggests that Germany should move away from this extractivist approach and instead support African-led initiatives for domestic resource mobilisation and regional complementarities, particularly through the AfCFTA, to foster a more just and green transition.

• Germany faces a systemic tension in its Africa policy between the profit motives of large corporations and a 'rhetorically moral approach to foreign and development policy'.
• Historically, German trade with Africa has been dominated by the import of oil and minerals and the export of chemicals and machinery.
• German Foreign Direct Investment (FDI) in Africa was relatively low, totaling 1.6 billion USD in 2021, though some large firms like Volkswagen and BASF maintain significant operations.
• Despite rhetoric regarding a green transition, Germany is exploring fossil fuel dependencies in Africa, including prospective LNG volumes from Senegal and a proposed gas pipeline from Nigeria via Niger and Algeria.
• The author argues that for German trade policy to be just, it must support a Pan-African industrial policy based on 'domestic-resource mobilisation' and 'regional complementarities' rather than relying on foreign corporations.
• The African Continental Free Trade Area (AfCFTA) is identified as a potential mechanism to move away from raw commodity-focused strategies toward complex industrial production and regional infrastructure cooperation.

APA

Koddenbrock, K. (2023). German Trade and Investment in Africa: Geoeconomics, Regional Complementarities, and Domestic Resource Mobilisation. Africa Policy Research Institute. https://afripoli.org/german-trade-and-investment-in-africa-geoeconomics-regional-complementarities-and-domestic-resource-mobilisation

Chicago

Koddenbrock, Kai. German Trade and Investment in Africa: Geoeconomics, Regional Complementarities, and Domestic Resource Mobilisation. Africa Policy Research Institute, 2023. https://afripoli.org/german-trade-and-investment-in-africa-geoeconomics-regional-complementarities-and-domestic-resource-mobilisation.

Wikipedia

{{cite report |last1=Koddenbrock |first1=Kai |title=German Trade and Investment in Africa: Geoeconomics, Regional Complementarities, and Domestic Resource Mobilisation |publisher=Africa Policy Research Institute |date=21 December 2023 |url=https://afripoli.org/german-trade-and-investment-in-africa-geoeconomics-regional-complementarities-and-domestic-resource-mobilisation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{koddenbrock2023german, author = {Koddenbrock, Kai}, title = {{German Trade and Investment in Africa: Geoeconomics, Regional Complementarities, and Domestic Resource Mobilisation}}, institution = {Africa Policy Research Institute}, year = {2023}, month = dec, url = {https://afripoli.org/german-trade-and-investment-in-africa-geoeconomics-regional-complementarities-and-domestic-resource-mobilisation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }