Africa: German Investment in Africa Stalls Despite Government Push

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German Investment in Continent Stalls Despite Government Push DeutscheWelle: Africa

South Africa's trade minister, Ebrahim Patel, stressed that a nation's development and prosperity increasingly depend on partnerships with other countries. He said he saw an opportunity to increase trade between Germany and Africa but much more needed to be done.

DW correspondent Adrian Kriesch said it was promising to see so many German business leaders present in Johannesburg. Also encouraging was their interest in African nations apart from South Africa, which attracts the lion's share of Germany's direct foreign investment. Chinese investment showed the fastest growth, expanding by a factor of 40."Accordingly, the significance of German enterprises for African economies is shrinking," the analysis found.More than half of Germany's direct investment flows into South Africa, where more than 400 German companies employ some 65,000 people.

KSB's managing director, Peter Weber, said that firms wanting to enter the African market face a"lot of challenges," such as poor infrastructure, which makes it difficult to export products, or complicated bureaucracy, which slows the setting up of companies.

 

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