The government of Germany has pledged to invest €4 billion ($4.3 billion) in Africa’s green energy projects until 2030, encouraging African nations to generate green energy to be supplied within their countries and to the EU.

The announcement was made by the German Chancellor Olaf Scholz, alongside African leaders and other heads of international organizations, including Akinwumi Adesina, the President of the African Development Bank Group, as a part of the G20 Compact with Africa, an initiative to improve the conditions for sustainable private sector and infrastructure investment in Africa.

The African countries who have joined the initiative include Benin, Burkina Faso, Côte d’Ivoire, the Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.

During the conference, Scholz said, “The starting signal for stronger, reliable cooperation between Africa and Europe to realize climate-friendly energy supply based on green hydrogen.”

Describing the African nations as ‘the partner of our choice,’ he emphasized that they should produce green hydrogen extensively and rely on EU nations as buyers.

He also said, “African countries should benefit more strongly from their wealth of natural resources, and explained that the first step of processing should take place locally, creating jobs and prosperity.”

According to Adesina, in order to attract investments in the region, private sector development strategies should be aligned with net-zero emission objectives and prioritized green investments.

Earlier this year, France-based fund manager Rgreen Invest and investment advisor Echosys Invest raised €87.5 million (~$92.2 million) as a part of their Afrigreen Debt Impact Fund to finance on and off-grid solar power projects in Africa.

In February this year, a few West African countries started the $311 million Regional Emergency Solar Power Intervention Project to expand electricity access to millions of consumers in Chad, Liberia, Sierra Leone, and Togo. The program aims to accelerate renewable energy capacity connected to the grid and improve regional integration among the participating countries.