In May 2022, a few months after the beginning of his tenure, German chancellor Olaf Scholz concluded a trip to Africa, visiting strategic partners such as Senegal, Niger and South Africa. The discussions with the countries’ leaders mostly focussed on the future of the energy sector in Africa and Germany and the potential for collaboration between the countries.
Senegal – Vast natural gas reserves
Senegal, the current Chair of the African Union, is home to huge gas reserves of more than 420 billion cubic metres. The reserves are located on the maritime border between Senegal and Mauretania and jointly owned by the two countries. The project called Greater Tortue Ahmeyim aims to export the first liquified natural gas (LNG) from the field in 2023. This is following Covid-related delays. The capacity of LNG exports amounts to approximately 3.5 billion cubic metres annually.
According to Scholz, Senegal was intentionally chosen as the first stop on his trip to discuss cooperation in the use of the natural gas reserves. With LNG-imports from Senegal, Germany could replace around 7% of its Russian gas imports. One of Germany’s current goals is to become more independent from Russian gas.
During the visit, Senegal’s President Macky Sall advocated for more financial assistance for Africa’s investments into the improvement of the Energy sector. He called on the EU to support Africa in its efforts to develop natural gas resources. Natural gas is considered a cleaner alternative to coal. Sall was also invited to the G7 summit in Germany that is taking place at the end of June.
South Africa – Transition from coal to green energy
South Africa is another country that is in the early stages of a just energy transition. To this date, approximately 70% of South Africa’s electricity supply comes from coal-fired power plants. Due to the poor state of its coal power plants, the country is regularly struggling with preventive power-cuts.
During Scholz’ visit, South Africa’s International Relations Minister, Naledi Pandor, commented that South Africa realises Germany’s experience in switching from fossil fuels to other energy sources and expressed the countries willingness to build on that experience.
In 2021, Germany, France, the UK, the US and the EU have pledged $8.5 billion to South Africa over five years to support the phase-out of coal. According to analyses by NGOs in the climate sector, the country would have to shut down two-thirds of its coal-fired power plants by 2030 before the full phase-out in 2040 to support the energy transition.
As Senegal’s President Sall, South Africa’s President Cyril Ramaphosa too has been invited to the next G7 summit.
Niger – Important role as stabiliser in the Sahel region
In between his visits to Senegal and South Africa, Scholz stopped over in Niger, a country that, in contrast to the other two countries, is not considered an attractive energy trading partner by Germany.
One of the main reasons for this visit is Germanys view of Niger to be an “anchor of stability” within the politically unstable Sahel region. The country recently held relatively democratic elections.
In the case of Niger, Germany is focussing on providing irrigation aid through the German development bank KfW and combating soil erosion through the German international cooperation association (Gesellschaft für Internationale Zusammenarbeit – GIZ).
Hydrogen cooperation between Germany and African countries
A big part of the conversations during Scholz’s Africa trip was hydrogen. Many African countries, including Senegal and South Africa have huge potential in generating renewable energies and utilise them to produce the so called “green hydrogen”.
Green hydrogen is hydrogen that is generated by renewable energy or from low-carbon power. The production of green hydrogen entails significantly lower carbon emissions than other forms of hydrogen production (grey and blue hydrogen).
With regards to a German-supported solar power plant in Senegal, President Sall advised that the country is thinking about establishing green hydrogen contracts between Senegalese and German companies to expand cooperation between the countries.
Similar plans have been expressed by South Africa’s President Ramaphosa. South Africa currently experiences a period of recovery and reconstruction that, according to Ramaphosa, applies particularly to the development of a green energy economy in which green hydrogen is set to play a substantial role.
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