German-African industrial relations: insights and next steps
Summary
This research paper analyzes the current state of industrial relations between Germany and African nations, arguing that German perspectives are skewed by a paternalistic approach and a failure to recognize the continent's economic diversity. The authors suggest that Germany should shift from a charity-based development model to one focused on trade, investment, and peer-to-peer partnerships to unlock opportunities in sectors like green hydrogen and manufacturing.
Key insights
- German perceptions of Africa are characterized by a negative bias where potential is underrated and risks are overrated, often reinforced by media focus on "crisis, conflict and corruption."
- German government strategies toward Africa are described as uncoordinated and paternalistic, with some ministries focusing on aid and top-down relations rather than treating African actors as peers in industrial relations.
- The German business community exhibits a lack of entrepreneurial risk-taking in Africa, with only approximately 1,000 out of over 3 million enterprises pursuing interests on the continent.
- Economic data shows significant diversity across African nations; for example, between 2010 and 2022, Ethiopia's real per capita GDP grew by an average of 8.8% and Rwanda's by 6.7%, while South Africa and Algeria did not advance significantly.
- There is a strategic mismatch in German engagement: official development aid (ODA) is concentrated in high-political-risk countries, while German businesses prefer low-risk environments, indicating a lack of a cohesive overall strategy.
- The West African coast and the Sahel are identified as having high potential for producing green hydrogen for both domestic use and export to Germany.
- To attract more German investment, the document suggests that African governments should increase transparency regarding governance and invest in infrastructure, such as harbours, airports, and railway connections, to lower transaction costs.
Cite the original document
- APA
- Freytag, A., & du Plessis, S. (2024). German-African industrial relations: insights and next steps. Africa Policy Research Institute. https://afripoli.org/german-african-industrial-relations-insights-and-next-steps
- Chicago
- Freytag, Andreas, and Stan du Plessis. German-African industrial relations: insights and next steps. Africa Policy Research Institute, 2024. https://afripoli.org/german-african-industrial-relations-insights-and-next-steps.
- Wikipedia
- {{cite report |last1=Freytag |first1=Andreas |last2=du Plessis |first2=Stan |title=German-African industrial relations: insights and next steps |publisher=Africa Policy Research Institute |date=10 September 2024 |url=https://afripoli.org/german-african-industrial-relations-insights-and-next-steps |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{freytag2024germanafrican, author = {Freytag, Andreas and du Plessis, Stan}, title = {{German-African industrial relations: insights and next steps}}, institution = {Africa Policy Research Institute}, year = {2024}, month = sep, url = {https://afripoli.org/german-african-industrial-relations-insights-and-next-steps}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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