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

This research paper examines the tension in Germany's trade and investment policy toward Africa, contrasting a history of corporate-led 'geoeconomic' interests with a more recent shift toward a morality-based foreign policy. The author argues that Germany has an opportunity to move away from extractivist models and instead support African economic self-determination through domestic resource mobilisation and regional industrial complementarities.

• Germany's trade and investment policy in Africa is characterized by a persistent tension between the pursuit of corporate profit and a rhetorically moral approach to foreign and development policy.
• Historically, Germany operated as a 'paradigmatic geoeconomic' power where foreign economic policy was often 'anti-moral' and driven by the profit motives of large corporations such as Siemens, Bayer, Volkswagen, and BASF, followed by small and medium-sized enterprises (the Mittelstand).
• A recent shift toward a morality-based approach, led primarily by Foreign Minister Annalena Baerbock, emphasizes human rights and the 'international rules-based order.' This shift is partly driven by the realization that building relationships with all partners is no longer the most profitable strategy due to the 'weaponisation of trade' and risks of asset seizures.
• German Foreign Direct Investment (FDI) in Africa was relatively small at 1.6 billion USD in 2021, though specific companies maintain significant footprints, such as Volkswagen's production sites in South Africa and Ghana.
• Trade between Germany and Africa has traditionally been dominated by German imports of oil and minerals and exports of chemicals and machinery. However, Germany is now seeking diversified gas supplies, with potential LNG trade with Senegal and a proposed gas pipeline from Nigeria via Niger and Algeria.
• The author proposes that Germany should support a Pan-African industrial policy focused on 'domestic-resource mobilisation' and regional complementarities to move beyond post-colonial, extractivist models. This would involve supporting the AfCFTA process to foster regional infrastructure and complex industrial production rather than raw commodity exports.

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} }