The German government, led by Chancellor Olaf Scholz, pledged €4 billion ($4.37 billion) for African green energy initiatives until 2030. This announcement was made during a news conference at the G20 Compact with Africa summit in Berlin.

Chancellor Scholz emphasized the need for African nations to benefit more from their rich raw materials. Although specific projects were not mentioned, Scholz highlighted the importance of processing materials for green energy within the African countries of origin, promoting job creation and prosperity.

During a joint press conference with Azali Assoumani, the head of the African Union, and Moussa Faki, the head of the AU Commission, Scholz underlined the inseparable connection between Europe's future and that of its neighboring continent. The four-billion-euro investment aligns with the goals outlined in the Africa-Europe Green Energy Initiative.

Scholz expressed confidence that recent challenges, including a court ruling on the country's 'debt brake' and the cancellation of €60 billion for the Climate and Transformation Fund, would not impact the financial commitments made at the Compact with Africa summit.

Key topics at the summit include discussions on green hydrogen production in Africa, critical for Germany's future supply architecture of synthetic fuel. Scholz encouraged African countries to produce green hydrogen, assuring them of reliable buyers in Germany. The chancellor stressed the summit's agenda includes enabling better access to affordable and sustainable energy for people in Africa.

Addressing the shortage of skilled labor in Germany, Scholz welcomed African workers to fill vacant positions, highlighting the potential for cooperation through migration partnerships. These partnerships aim to attract skilled workers from African states to contribute to Germany's energy transition plans and wider economic development.

While Germany is interested in exploring new sources in Africa, especially for natural gas, the talks primarily focus on clean energy projects. These projects include a geothermal energy initiative in Kenya, grid expansion and decentralized power production in Nigeria, and wind and solar power projects in Morocco.

Unlike China's approach of investing in resource extraction, Germany aims to create a platform for long-term value creation in the source states themselves. Scholz urged G20 partners to support Africa's call for reform in the international financial architecture, promoting fair and inclusive global economic governance.

Assoumani echoed this sentiment, calling for an extension of the Compact with Africa initiative to all African countries, emphasizing a stronger, more inclusive partnership for the benefit of the entire continent. The G20 Compact member countries include Morocco, Tunisia, Egypt, Senegal, Guinea, Ivory Coast, Ghana, Togo, Benin, Burkina Faso, Rwanda, the Democratic Republic of Congo, and Ethiopia.