I wish to commend the Wegweiser GmbH and the German-African Business Association for their initiative to publish this first edition of the Business Guide Germany Africa. The publication is indeed very timely, coming at this period of severe global economic and financial crisis when the further opening of markets and the strengthening of business relationships between countries and regions are critical for the reversal of the global depression. Although the flows of trade, investment and technology between Germany and Africa have increased over the years, their potentials are yet to be fully realized. By providing useful information on trade and investment opportunities to African and German business operators, the Guide could contribute significantly to the enhancement of the level of trade and investment flows.

Africa is a continent of enormous business opportunities, the last major frontier of the global economy that is yet to be fully explored. It is abundantly endowed with natural resources and has a large population that is youthful and growing. The average rate of return on investment in Africa is among the highest in the world. Unfortunately, the excessive focus by the international media on the few dark spots in the continent’s development process, such as the incidence of conflicts, which create a wrong perception of Africa as not having a favourable environment for investment and business has denied it the opportunity of taking full advantage of the relatively high rate of return on investment in Africa. My expectation is that this Business Guide will assist in projecting the other side of Africa, as a continent of business opportunities and strong future markets and as a good destination for foreign investment.

At the national, regional and continental levels, African countries have in recent years adopted a package of measures that are aimed at improving their environments for business. Economic policy reforms have been implemented to achieve macroeconomic stability. Fiscal and external payments imbalances, inflation and currency overvaluation have been reduced. The ease of doing business is being enhanced through improvements in legal and administrative frameworks. Most African countries have adopted measures to strengthen the institutions of governance, to enhance democracy, rule of law, accountability and transparency. Within Africa, the private sector is now widely accepted as key engine of economic growth while there is increasing commitment to public-private sector partnership. Many African countries have entered into bilateral investment treaties (BITs) that give protection to investors and provide them with generous incentives. The African Union and NEPAD, its strategic programme, as well as the Regional Economic Communities, which are building blocks of the Union, have an ambitious agenda to build trade capacity, to address the problems of conflicts and infrastructure deficiency, and improve interconnectivity in Africa. A wind of change is blowing through Africa. The continent is undergoing economic and political transformation that would enhance its business relations with Germany.

Prior to the onset of the current global economic and financial crisis, many African countries were recording a growth rate of over 6 per cent. This impressive growth performance was due partly to policy reforms adopted by the countries. Like other regions of the world, Africa has not been spared from the contagion effects of the global crisis. Its average annual growth rate is projected to fall by half in the next few years. However, with the foundation that has been laid for the attainment of sustainable growth, Africa would return quickly to the path of impressive economic growth after the resolution of the current crisis. The continent thus faces a bright economic future in the medium and long terms. It is my hope that German business will be a major partner of Africa in the realization of this future.