Germany Aims for Economic Turnaround in Africa as Trade Grows

Germany is increasing its focus on economic relations with Africa, which is seen as a growing market with rising purchasing power. The German-African goods trade was valued at 58.4 billion euros in 2024, accounting for only 2% of Germany's total global trade. Notably, exports to Africa saw a 7% increase from January to July 2025, suggesting a positive trend amid slower global trade growth, according to a report from the German Chambers of Commerce. However, political uncertainties and infrastructure deficits pose significant challenges for German businesses operating on the continent.

To address these challenges and capitalize on Africa's potential, the Subsahara Africa Initiative of the German Economy (SAFRI) is calling for a shift termed an "Afrikawende" or "Africa turnaround," urging a reevaluation of both political and business strategies to improve engagement in Africa. The initiative has pinpointed five key action areas for this shift: strengthening local value creation, establishing reliable business frameworks, enhancing raw material partnerships, promoting innovation and digitization, and facilitating financing.

The increasing competition from countries like China, India, and Turkey underscores the urgency for German companies to rethink their strategies. A forthcoming position paper titled 'Afrikawende Jetzt' is expected to provide detailed strategies to ensure that German businesses can leverage opportunities in one of the world's fastest-growing economic regions. As highlighted by the reports, now is a critical time for German engagement in Africa to foster sustainable business relationships and growth.