Africa is Ripe for Investments

At the 'G20 Compact with Africa' Investment Summit held in Berlin on Tuesday the Rwandan President Paul Kagame made the case for Africa's business environment, saying the continent is ripe for investments from the European Union.

G20 Compact with Africa is an initiative launched in 2017 to promote private investments in Africa and currently, 12 African countries - including Rwanda have joined it.

Kagame commended Germany Chancellor Angela Merkel's leadership in prioritizing investment from the German business community and highlighted an example of Rwanda's partnership with Germany companies like Volkswagen and Siemens, saying that it "demonstrates the competitiveness of our economies and the reforms that have been happening in the ease of doing business."

According to figures from Rwanda Development Board (RDB), German business interests in Rwanda have been expanding over the past few years.

"This really showcases how Africa is ripe for business and investment, and how far we can go," he told participants, where heads of state and business communities had gathered.

Besides Rwanda, other African countries that are part of the partnership are Benin, Burkina Faso, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Senegal, Togo and Tunisia.

Thomas Schaefer, the Chairman and the Managing Director of Volkswagen South Africa told business executives present especially those from Germany that the continent was particularly ready for investments in the automotive industry where his group is already invested.

He pointed out that the continent was faced by challenges of dumping of used cars and extraordinary importation of fuel, saying businesses could tap into that to address challenges.

VW presently assembles cars in Rwanda, which started back in 2016.

"In the next move, we are going into electric mobility because there is no way a country like Rwanda can continue to import fuel. We believe Rwanda can go carbon neutral," he noted.

Last month, VW unveiled an electric mobility project in Rwanda which serves as a pilot for the company's future decisions of electric mobility in the continent.

The company now uses electric-powered versions of its Golf hatchback cars for a ride-sharing service.

While Foreign Direct Investments has decreased globally, Africa continues has seen an increase nearly 11 per cent valued at USD46 billion, according to available statistics of 2018.

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