Johannesburg: German Chancellor Friedrich Merz announced on Saturday that Germany will invest over £37 million ($42.63 million) in the African Trade and Investment Development Insurance (ATIDI) through the development bank KfW. This strategic move aims to mobilize up to $500 million in trade and investment between German companies and African markets. The announcement was made during a side event at the G20 Leaders' Summit in Johannesburg, South Africa.

According to Anadolu Agency, Chancellor Merz emphasized the significance of this investment in strengthening trading links between Germany and African countries. He highlighted that the initiative would lead to increased investment by German companies on the continent, fostering value creation in Africa. Currently, Germany supports economic reform projects in the G20-backed Compact with Africa (CwA) countries with over £3.2 billion. The CwA, launched during Germany's 2017 G20 Presidency, aims to boost private investment and drive economic reforms across African nations.

Merz described the initiative as entering "a new phase," or "Compact 2.0," noting the inclusion of Zambia and Angola this year, which expands the compact to 15 countries. He extended his congratulations to Angolan President Joao Lourenco for joining the group and expressed confidence that this engagement would further strengthen the compact. South African Vice President Paul Mashatile echoed this sentiment, asserting that the compact will continue to unlock investments and bolster resilience.

African Union Commission Chair Mahmoud Ali Youssouf also praised the CwA for providing an opportunity to implement reforms that attract investment and align with the objectives of the African Continental Free Trade Area protocol on investment. He stressed the importance of focusing on priority sectors such as mineral resources to create decent jobs and generate income for millions of Africans.