Organizers are upbeat that the 13th German-African Energy Forum later this month would set the stage for German and African businesses to expand economic ties, do deals, create jobs, combat energy poverty, and use German know-how to spur growth.
The energy forum, in Hamburg on March 27th-28th, 2019, is organized by the Afrika-Verein der deutschen Wirtschaft.
There are reasons many are optimistic. For a start, Africa’s LNG production is rising and is set to change global energy dynamics.
South Africa is on a path to be an LNG producer, while Congo, Cameroon, Tanzania, Equatorial Guinea, Ghana, Mozambique, Rwanda and Sudan continue to show progress as potential LNG powerhouses.
On the other hand, German companies with the right technology have the immediate benefit of investing and executing contracts in power projects around Africa.
The hope is that African gas producers are going to deliver gas to the German market as there are many African gas discoveries and projects in the pipeline that many believe would reshape the gas market.
The risk for Germany not acting fast will be competition from Asia and other European markets. Africans through initiatives like LNG to Africa are competing for these same resources.
The good news is Energy is still an area where German entrepreneurs can make considerable profits in power and petrochemicals. Many hope that German and African businesses would play an integral part in the African diversification drive as it is profitable for both sides.
The 13th German-African Energy Forum is set to gather a very prestigious list of African participants, including ministers from South Africa, Angola, Morocco, Ghana, Sierra Leone, South Sudan, Nigeria, Equatorial Guinea, The Gambia, Burkina Faso, and Somalia. African governments and companies will have a unique opportunity to network and discuss deals with leading German and European companies and investors such as ABB, Siemens, Allianz, Voith, Lucas Nülle, Inzag, Gauf Engineering, Andritz or Tractebel notably.
While most of the business in the energy sector has been done by a few large German and African companies, most firms that can add value and generate opportunities within the sector are actually small to medium-sized service companies and contractors.
Germany is Europe’s start up country and many believe it is the right time for German startups to provide energy solutions for a growing Africa and while turning generous profits.
Under the theme “Realising & Financing Africa’s Energy Revolution”, the forum will highlight the most promising areas for investment opportunities and energy cooperation between German companies and Africa, including smart energy systems, waste-to-energy, renewable energies, hybrid systems and energy financing.
“African countries must continue creating an enabling environment for German investors. It is critical for entrepreneurs and for job creation. Germany is a key partner for Africa, and German technology and know-how will be key in addressing Africa’s energy challenges,” said NJ Ayuk, Executive Chairman at the African Energy Chamber.
“German companies are global leaders in renewable energy, off-grid solutions, gas-to-power and the development of power infrastructure, especially in the transmission & distribution area. Attracting further German investments into Africa will be very beneficial to meet capital requirements in energy infrastructure and promote technology and skills transfers,” added Ayuk.