Merkel pledges new investment fund to develop new markets in Africa

The German Chancellor Angela Merkel has called for more private investment in Africa as she hosted African leaders as part of a concerted effort to combat underdevelopment on the continent.

Merkel said Tuesday her government will establish an investment fund to help develop new markets.

“We, the German government, have met and reflected on how to take further action. We will create an investment fund for the development of small and medium-sized enterprises, both European and African. With this fund, participation and loans will be financed in order to enable, for example, the launch of new markets”, Merkel said.

The Berlin Summit, is being attended by 12 leaders, including South African President Cyril Ramaphosa and Rwanda’s Paul Kagame. Both leaders presented the continent as a stable investment destination.

“And we can say unequivocally that Africa is indeed open for business. And we are delighted to have this opportunity for African countries to present viable, bankable and investable projects. We invite you to take a greater interest in our continent. Thank you very much”, Ramaphosa said.

Kagame said ‘‘as a result of the financial and institutional reform, the African Union has achieved savings of 12 per cent in its next budget and Member States are paying a larger share of the bill. We have also signed agreements on the free movement of people and a continental free trade area, the FTA, making Africa a single trading bloc’‘.

The G20 Pact with Africa was initiated under the German G20 presidency, and aims to promote private investment on the continent.

Reuters