Already 21 percent of German companies do business with African customers. Within five years, the export volume has doubled from Germany to the African continent. The German Industry and Commerce Chamber expects in the next ten years further increases up to 15% per year. A consumer market of over one billion people in over 50 different countries is ready to develop.
African countries on the other side are currently investing huge amounts of money in infrastructure projects, ports, railway lines and power plants. The revenues from commodity sales and the rise in world commodity market prices have filled the pockets of several African countries. Africa has become self-confident, Africa is the continent of opportunities.
"In Africa today, we recognise that trade and investment,
and not aid, are the pillars of development."
Paul Kagame, President of Rwanda.
The associated economic upturn by six percent and more in some countries already boosts the local purchasing power massively. This year, the economic performance of Africa will grow by 4.8 percent and in 2014 by a further 5.3 percent, according to a joint report by the Organisation for Economic Cooperation and Development (OECD), the African Development Bank (AfDB), the African Economic Commission (ECA ) and the UN Development Programme (UNDP). Numbers of that the weaking European economy currently can only dream of. Between 2003 and 2012 non-African investors have also increased the overall value of their investments in Africa by 214% to 182 billion U.S. dollars. Large shopping center on the western model, banks, office buildings as well as new road projects are on the raise. Engines of growth in southern Africa are particularly Kenya, Nigeria, Ghana, Namibia, Botswana and South Africa, but also Uganda, Tanzania and of course the North African region. The need for high-quality German goods , trucks, food and other assets is growing. A in average younger population than in western countries, an increasing life expectancy and declining death rates quicken the rise to a potent labor and consumer market. Who does not put a foot in the emerging markets, especially the emerging markets in Africa today, will tomorrow perhaps be among the losers of globalization. Without expert advice a rash market entry often becomes a financial fiasco.
The liberalization of African markets, the reduction of trade barriers and the expansion of independent courts noticeably improved the investment climate in some African countries. The African stock markets pick up speed. The German-African Network of legal advicers want to help the German industry to reduce their backlog to foreign competitors on the continent of opportunity, provide legal advice on investment decisions in the African markets and prove and push through remedies, if difficulties arise among import and export transactions, in land transactions or other trading activities.
The German economy is not a risk taker for lucrative business in the emerging markets, because of a lack of knowledge about the progress of infrastructure, the fighting against corruption and the improving legal certainty. A tendencial negative reporting in the German media feeds this distorted image. Notice: Problems are always capped opportunities. This has the great investment expert Mark Mobius said in his book about the 'emerging markets'. And also: "The world belongs to the optimists. The pessimists are condemned to sit on the bench for the audience." One who has patience, can receive high returns. So far, only two percent of Germany´s exported goods, go to Africa (value 2013: EUR 21 billion, therof 40 per cent go to South Africa). So there is still plenty of room for improvement.
Expert for European law (univ.)