Olaf Scholz, the German Chancellor has pledged $4.4 billion for the Africa-EU Green Energy Initiative. This is according to a November 20 report by Bloomberg. According to the report, Scholz made the pledge at the ongoing G20 Compact with Africa Investment Summit in Berlin, Germany.
According to him, the funding will cover the initiative through 2030.
He stated that Germany will import a significant portion of its green hydrogen from Africa.
He also said that African countries should speed up the implementation processes of the Africa Continental Free Trade Area (AfCFTA), to ease business within the continent.
“This is not about development aid according to the outdated patterns of donors and recipients,” Scholz said Monday in a speech marking the opening of a Group of 20 investment summit in Berlin.
“This is about investments that pay off for both sides. For example, on the road to climate neutrality in 2045, we in Germany will need large quantities of green hydrogen and will import a large proportion of it from Africa.
“We want to continue to closely support this forward-looking project, which is why we are backing the negotiations and implementation of the agreement as the largest donor.”
The Africa-Europe Green Energy Initiative, as outlined by the European Commission, stands as a pivotal strategy designed to facilitate engagement between European and African stakeholders, both from the public and private sectors.
This initiative serves multifaceted objectives, primarily aimed at augmenting electricity generation and enhancing energy accessibility across the African continent.
Among its key goals are fostering advancements in energy efficiency, bolstering support for regulatory reforms conducive to attracting private investments, and cultivating an integrated energy market.
One significant facet of this initiative unfolds within Nigeria, where strategic efforts are underway to propel renewable energy projects through a forthcoming financing agreement.
The anticipated agreement is poised to pave the way for the establishment and advancement of renewable energy ventures within the Nigerian landscape.
Additionally, a key component of this initiative involves the launch of the Youth in Agribusiness programme, signalling a concerted drive toward empowering and involving the youth demographic within the agricultural sector.