Germany will invest €4 billion ($ 4.4 billion) in sustainable energy projects in Africa until 2030 to help improve the continet’s role in renewable power, green hydrogen and critical raw material extraction, Chancellor Olaf Scholz announced at the Compact with Africa (CwA) summit in Berlin, reported Clean Energy Wire.

The summit, where African Union head Azali Assoumani and AU Commission head Moussa Faki were also present, stems from an initiative at the G20 group of influential countries brought together the leaders of several African and European states, with clean energy and the role it can play to develop African economies and benefit decarbonisation globally being a key topic.

The German government ahead of the summit said that increasing the role of African states in not only providing resources for sustainable technologies but also in processing them on site would be among the main aims of the compact, contrasting it with the approach that China has pursued in Africa in the past years.

"This is not about development aid according to the outdated patterns of donors and recipients," said Scholz at speech in Berlin. "This is about investments that pay off for both sides."

The chancellor also stressed that African workers would be welcome to fill many of the vacant positions for skilled labour that is currently presenting a challenge for energy transition plans and wider economic development in Germany.

"While we are lacking workers, many countries in Africa have a large share of young women and men who seek work and want to seize their opportunities," Scholz said.