Merkel launches fund to develop new markets in Africa

31 Oct 2018

BusinessmanIn an effort to tackle underdevelopment and unemployment in Africa, German Chancellor Angela Merkel has called for more private investment on the continent.

On Tuesday, Merkel said that her government will set up an investment fund to aid the development of 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.

12 leaders have attended The Berlin Summit, including South African President Cyril Ramaphosa and Rwanda’s President, Paul Kagame.

“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”.

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