German Chancellor Friedrich Merz announced on Saturday that Berlin will invest over €37 million ($42.6 million) in the African Trade and Investment Development Insurance (ATIDI) via development bank KfW. The investment is expected to mobilize up to $500 million in trade and investment between German firms and African markets, boosting economic ties.
Speaking at a G20 side event in Johannesburg, Merz said Germany anticipates stronger trading links, increased investments, and more value creation across the African continent. Germany currently supports economic reform projects in Compact with Africa (CwA) countries with over €3.2 billion, a programme launched under Berlin’s 2017 G20 Presidency.
Merz described the initiative’s progress as “success stories,” highlighting rising investments, job creation, and economic reforms in participating nations. He called the expansion to Zambia and Angola “Compact 2.0,” raising the number of member countries to 15 and celebrating deeper continental collaboration.
Congratulating Angolan President Joao Lourenco, Merz emphasised that the initiative aims to scale up investment, creating jobs and fostering sustainable growth in Africa. South African Vice President Paul Mashatile said the compact will continue unlocking investments while building “vigilant resilience” across participating economies.
African Union Commission Chair Mahmoud Ali Youssouf noted the compact helps implement reforms that attract investment and support the African Continental Free Trade Area protocol. He urged a focus on priority sectors, including mineral resources, to generate jobs and income, creating opportunities for millions across the continent.