Welcome
to your financing expert for the West and Sub-Saharan Africa region

What characterizes the markets in West and Sub-Saharan Africa - and what fascinates you personally about them?

The region is on the move - you can clearly feel that. Economic growth of around 3.2% is forecast for sub-Saharan Africa in 2024. Numerous new large-scale projects are being developed, for example in the area of water and wastewater infrastructure. One showcase example is the drinking water supply in Abidjan - a model that other countries would also like to adapt.

At the same time, many other sectors are developing dynamically - especially agriculture. This is not just about exporting agricultural products, but also about their sustainable processing and energy supply. The natural conditions are in place and there is great global interest in the products.

Are there any sectors that are particularly interesting for German companies?

That depends very much on the region in question. In principle, the export credit guarantees are open to all sectors - regardless of the order value. For West and Central Africa, however, we can say that the food processing and packaging industries currently offer great potential. Many countries continue to import a large proportion of their food - there is an enormous need for development here, particularly through the industrialization of agriculture.

Another consistently relevant sector is construction. Almost all countries in the region are continuously investing in the expansion of their infrastructure.

How can export credit guarantees facilitate market access for German companies?

The federal government's export credit guarantees protect exporters and banks against payment defaults that may arise due to political or economic risks abroad. They therefore provide reliable security and financing for export transactions - often at a very early stage of business initiation.

We are happy to advise companies - from the initial market exploration and contract negotiations through to the long-term hedging of ongoing projects. Especially when doing business with previously unknown markets, a suitable financing offer can be a door opener and create trust.

What influence does political stability - or instability - have on economic development in the region?

Of course, the political situation of a target country plays an important role in risk assessment. But in retrospect, it is clear that even election shifts or changes of power do not necessarily lead to economic stagnation. Decision-makers often deliberately protect economic relationships.

However, long-term stability is essential in order to promote sustainable development. It is particularly important that stable states in the region support those that are currently undergoing change.

Which programs or institutions help with market entry?

The Chambers of Foreign Trade (AHKs) are a very good first port of call. There are also consulting vouchers from the Africa Business Network, which make it easier to get started. Other important partners are Germany Trade & Invest (GTAI), the Gesellschaft für Internationale Zusammenarbeit (GIZ) and the KfW-DEG AfricaConnect program - with so-called German Desks, which are represented directly on site in some countries.

How important is sustainability in the region - and what role does climate change play?

Climate change is having a direct impact in West Africa. In Côte d'Ivoire, for example, an extended rainy season led to poorer harvests - with direct consequences for the export of important agricultural products.

Another issue is the power supply. Many companies are striving for greater independence from the public grid. Solar energy is particularly interesting here - if the switch is economically viable, it will also be increasingly used.

Some governments have already formulated initial climate strategies - even if concrete implementation is still in its infancy.

What opportunities are there in the region for renewable energies and sustainable financing?

The natural conditions for renewable energies are very good - especially in countries with a large, inexpensive supply of land. Mauritania is a good example of the potential of solar energy. Hydropower is also an interesting addition in some West African countries and is already being used.

Although the major energy transition has not yet taken place, interest is clearly growing. Countries are increasingly making inquiries, especially due to attractive financing conditions. The opportunities are there - and are increasingly being exploited.

What advice would you give to German companies that want to become active in West or Sub-Saharan Africa?

Use delegation trips or trade fairs - these formats are ideal for getting started. Many programs are specifically tailored to individual sectors or business models.

I also recommend establishing contact with local financing experts or industry representatives at an early stage. These networks can be crucial later on - whether during the actual implementation of a project or during ongoing operations.