Germany seeks "value for money" in race for Africa

By Jean-Baptiste Piggin Jun 15, 2011, 14:35 GMT

Berlin - Impressed at China's big push into Africa, Berlin laid out a plan Wednesday to also seek more influence among African nations, but without spending vast amounts of new money.

With an eye on Africa's minerals, China has built roads and railways into the bush. India and Brazil have also upped their aid. Last year, the British magazine The Economist wittily termed Brazil's Africa policy as, 'Speak softly and carry a blank cheque.'

Germany's future policy is likely to be the opposite, judging by the 29-page policy paper approved by Chancellor Angela Merkel's cabinet. The tenor could be summarized as: demand good governance and value for money.

The document says the relationship should be a 'partnership of equals,' but its sober focus is on German 'values and interests.'

It argues that the majority of Africa's 1 billion people are eager for democracy, human rights and the rule of law.

Germany's six main diplomatic objectives will comprise peace, good governance, business opportunities, protecting the environment, securing raw materials and promoting education.

The document focuses on state action, making no mention of the hundreds of thousands of people with African roots living in Germany and the remittances they send home to support their families.

It also indicates that private enterprise may have to do its own hustling to gain greater access to African minerals, oil and gas.

'The government supports moves by German companies in the energy and raw materials sector to improve supplies to Germany and at the same time modernize African infrastructure by way of resource partnerships,' the document says.

One broad-based deal like this has already been reached with Nigeria, and Berlin hopes to agree an energy partnership this year with Angola.

Currently, Germany obtains 18 per cent of its oil from Africa, mainly from Nigeria and Algeria, while 34 per cent of its hard coal is mined in South Africa.

So far, gas imports from Africa by ship are negligible, as most gas is piped in from the North Sea and Siberia.

'Germany is trying to diversify its gas imports. Nigeria has big, largely unused reserves ... Both governments have identified concrete projects ... These would improve Nigeria's electricity supplies and boost liquefied natural gas exports to Germany,' the paper said.

While there are no plans for grand gestures by Berlin, the paper takes consolation from the fact that Africa is now helping itself, noting that economic growth in Africa has averaged 6 per cent per year for the past decade, above the world average.

Berlin insiders say the cabinet-approved document reflects a restoration of Foreign Ministry supremacy after a turf war in the German capital among departments that had each developed their own Africa policies.

The Foreign Ministry will oversee the 'coherence' of German policy, the paper said.

The document was unveiled by Foreign Minister Guido Westerwelle, whose pro-business Free Democratic Party (FDP) arrived in power in late 2009 eager to rein in aid budgets that rose sharply under a 1998-2005 government of Social Democrats and Greens.

Since the sharp gains in development aid by China, India, Brazil and other nations, Germany has wondered if it has much influence left.

Unlike France, which has frequently tipped the balance in Africa by sending in its military - most recently to enforce an election result in Ivory Coast - Germany is allergic to intervening with force.

Its sole major military operation near Africa is composed of warships protecting merchant ships from Somali pirates.

In a sign of Berlin's new realism, aid spending is to face 'continuous checks' to make sure that it provides 'value for money' and meets stated targets.

'If it seems (a project's) target is unachievable or that the money spent is disproportionate to the result, the government will review it,' the paper said.

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