The involvement of German businesses in Africa has so far been restrained. Around 800 companies with German capital are located in Africa. The Deutsche Bundesbank’s April 2019 report on the stock survey of direct investment in Africa shows that around 9 billion euros of direct investment flows from Germany to Africa. This represents about one percent of all German direct investment abroad and is a fraction of the investment volume of Chinese companies. Between China and Africa, the trade volume in 2017 amounted to 170 billion U.S. dollars[1].
Trade with the African continent is growing. In 2019, German goods worth 23.7 billion euros were exported to Africa. This corresponds to an increase of 5.3 percent. Imports from African countries even increased by 8.3 percent. They are worth 24.4 billion euros. German trade with Africa had still disappointed in 2018 with export declines of more than 10 percent. As a destination region for German exports, North Africa is now regaining importance after significant losses. Egypt, Morocco and Libya are among the countries with the highest growth rates. Trade with sub-Saharan Africa is also flourishing. South Africa, Nigeria, Ethiopia, Guinea and Tanzania show the largest increases.
Overall, German foreign trade increased worldwide in 2019, reaching record levels. However, growth has slowed slightly compared with previous years. Preliminary figures from the Federal Statistical Office speak of a 0.8 percent increase in exports and 1.4 percent in imports.
Despite the current increases, Africa still plays a small role in German foreign trade. Only 1.8 percent of total exports are destined for the continent. This is roughly equivalent to the value of goods going to Turkey or Japan. In fact, it is well worth taking a look at the African market. The most important players there, but also trade with smaller states, offer opportunities.
[1] https://globalperspectives.org/en/publications/gpi-study-2019/