German Vice Chancellor and Economic Affairs Minister, Robert Habeck, on Monday, December 2, said he saw great investment opportunities for the German energy industry in Kenya despite its challenges in attracting foreign investors.
However, before the European nation could proceed with investing in Kenya, Habeck stated that the country needed to implement significant changes to reassure investors.
He went on to outline three key areas that Kenya, along with other African nations, needed to address to attract not only German investors but foreign investors in general.
“For investments in Kenya or in Africa as a whole, planning security, legal certainty, and a tax and legal system that also makes the investments secure are needed,” Habeck opined.
A photo of the Olkaria II geothermal power plant
Photo
ArGeo
Even though he believed Germany could take on the risks of political turmoil by means of investment guarantees, he added, “But of course not 100%. So companies need to have trust in the state.”
The minister was speaking during a visit to the geothermal power plant in Olkaria where he acknowledged the Kenyan government’s ambition to run the energy system entirely on renewable energies by 2030.
“Firstly, this is exemplary in Africa. And secondly, it is an invitation to the German energy industry to seek cooperation here,” he said.
He went on to describe the great potential of geothermal energy as “a very, very exciting field” for German companies.
Currently, Kenya pumps hot steam with temperatures of up to 300 degrees Celsius from depths of 1,000 to 2,000 metres in the East African Rift Valley, which is converted into electricity in power plants via turbines.
The country already covers more than 90% of its electricity needs from renewable energies.
Habeck is in Kenya for the two-day German African Business Summit (GABS) which will end on Wednesday, December 4.
The conference is held every two years and encourages economic partnerships between business and government leaders in Africa and Germany.
President William Ruto walks alongside the President of Germany Dr Frank-Walter Steinmeier at Schloss Bellevue on Monday, March 27, 2023.
William Ruto