How effectively do Germany’s foreign trade and investment promotion schemes support investment in Africa?
News from 2020-09-22 / KfW Research
The German Federal Government regards private sector investment as crucial to Africa's economic development. However, German enterprises so far have invested relatively little in Africa. A key mechanism available to the Federal Government for promoting foreign direct investment is its set of foreign economic policy instruments. There is constant debate about whether to expand these promotional instruments with the aim of increasing the engagement of German firms in Africa. We have therefore examined the extent to which these instruments are effective in the African context and whether increasing the volume of guarantees for investments, for example, would lead to the desired result.