For many years now, the EU’s Africa
policy has been a graveyard of big words, good intentions and
unfulfilled promises, but has woken from slumber, probably to spurred by
China’s unrelenting incursion.
policy has been a graveyard of big words, good intentions and
unfulfilled promises, but has woken from slumber, probably to spurred by
China’s unrelenting incursion.
The Europeans have stood by and watched as China established itself in Africa, investing billions in the continent.
EU states fear they will find themselves relegated to the second league.
This is why, in his speech this week on
the state of the EU, Commission President Jean-Claude Juncker once again
announced “a new pact with Africa.”
the state of the EU, Commission President Jean-Claude Juncker once again
announced “a new pact with Africa.”
The EU, therefore, plans to invest more in Africa and wants to intensify trade relations.
Also since the refugee crisis, Europe has been courting African governments and banking on increased cooperation.
However, since the refugee crisis interest in a new strategy for cooperation with the continent has increased sharply.
In the next budget period the EU plans to increase funding to Africa to €40 billion ($46.5 billion).
The hope is that this money will then be
multiplied by private investors. As an incentive, the EU wants to
provide risk guarantees to encourage the private sector to make the
commitment and invest in African countries.
multiplied by private investors. As an incentive, the EU wants to
provide risk guarantees to encourage the private sector to make the
commitment and invest in African countries.
At the same time, Brussels is
increasingly seeking cooperation with the development banks of the EU
member states and with the European Investment Bank (EIB), which are
integrated into the program.
increasingly seeking cooperation with the development banks of the EU
member states and with the European Investment Bank (EIB), which are
integrated into the program.
The EIB, for example, is already
providing €6 billion to 2020 to tackle the causes of migration and
flight, and it’s hoped this will trigger a further investment of around
€35 billion.
providing €6 billion to 2020 to tackle the causes of migration and
flight, and it’s hoped this will trigger a further investment of around
€35 billion.
The emphasis here is on education and
jobs. Over the next five years the Alliance for Africa wants to create
10 million jobs; 750,000 people are to receive vocational training, with
a further 100,000 students benefiting from the
Erasmus exchange program.
jobs. Over the next five years the Alliance for Africa wants to create
10 million jobs; 750,000 people are to receive vocational training, with
a further 100,000 students benefiting from the
Erasmus exchange program.
The European Commission also plans big investments in transport, road infrastructure and energy.
When asked whether this wasn’t just
another reiteration of the EU’s good intentions, Neven Mimica, the EU
commissioner for international cooperation and development, explained
that the plans currently being put forward represent
a new approach.
another reiteration of the EU’s good intentions, Neven Mimica, the EU
commissioner for international cooperation and development, explained
that the plans currently being put forward represent
a new approach.
“Until now there wasn’t a coherent
economic strategy,” he said. Now, though, the EU wants to define — in
partnership and cooperation with African countries —the best
opportunities for development in each nation, and how the private
sector can be incorporated into the relevant projects.
economic strategy,” he said. Now, though, the EU wants to define — in
partnership and cooperation with African countries —the best
opportunities for development in each nation, and how the private
sector can be incorporated into the relevant projects.
The European Commission gave an example
of this tailor-made support. With the support of the Dutch development
bank FMO, microcredits are being given to internally displaced people,
returnees and small businesses in sub-Saharan
countries. This is intended to generate several hundred thousand jobs,
from an initial capital of €75 million.
of this tailor-made support. With the support of the Dutch development
bank FMO, microcredits are being given to internally displaced people,
returnees and small businesses in sub-Saharan
countries. This is intended to generate several hundred thousand jobs,
from an initial capital of €75 million.
“We are already strong political
partners,” said Federica Mogherini, the EU’s chief diplomat. “The next
step is to be true economic partners and deepen our trade and investment
relationship.”
partners,” said Federica Mogherini, the EU’s chief diplomat. “The next
step is to be true economic partners and deepen our trade and investment
relationship.”
The EU is still Africa’s biggest trading
partner, accounting for 36 per cent of all exports, ahead of China and
the US. The aim of the European Commission is to intensify this
cooperation and put it on a new contractual basis.
partner, accounting for 36 per cent of all exports, ahead of China and
the US. The aim of the European Commission is to intensify this
cooperation and put it on a new contractual basis.
There are already partnership agreements
with 52 African countries, meaning that many goods — everything except
weapons — are generally exempt from customs duty.
with 52 African countries, meaning that many goods — everything except
weapons — are generally exempt from customs duty.
As a next step, Europe is aiming for a
comprehensive free trade agreement between the EU and Africa. But this
would also mean African partners would have to dismantle the majority of
their customs barriers. African countries should,
however, be allowed to retain some of their import duties in order to
protect their domestic agricultural industry.
comprehensive free trade agreement between the EU and Africa. But this
would also mean African partners would have to dismantle the majority of
their customs barriers. African countries should,
however, be allowed to retain some of their import duties in order to
protect their domestic agricultural industry.
Critics have pointed out that the
principle of fair exchange has already met with trouble, because
European products are forcing their way onto African markets at prices
that are far too low.
principle of fair exchange has already met with trouble, because
European products are forcing their way onto African markets at prices
that are far too low.
And if farmers in Europe are hurt by low
prices, they at least get compensation in the form of direct payments
from the EU. For small-scale farmers in Africa, their entire livelihood
may be jeopardized.
prices, they at least get compensation in the form of direct payments
from the EU. For small-scale farmers in Africa, their entire livelihood
may be jeopardized.
NGOs have warned there cannot be the same rules for trade between rich and poor countries.
As one of the most important countries in
West Africa, Nigeria has until now refused to sign a partnership
agreement with the EU.
West Africa, Nigeria has until now refused to sign a partnership
agreement with the EU.
The balance of interests in this field is
more complicated in individual cases than one might suspect, given the
EU’s grand announcements.
more complicated in individual cases than one might suspect, given the
EU’s grand announcements.
European politicians have reacted with
alarm to demographic projections that see Africa’s population surpassing
2 billion by 2050.
alarm to demographic projections that see Africa’s population surpassing
2 billion by 2050.
Leaders like France’s Emmanuel Macron and
Germany’s Angela Merkel have been tirelessly visiting African nations
to promote economic cooperation and development, spurred on by the
prospect of increasing numbers of African migrants
potentially seeking a better future in Europe.
Germany’s Angela Merkel have been tirelessly visiting African nations
to promote economic cooperation and development, spurred on by the
prospect of increasing numbers of African migrants
potentially seeking a better future in Europe.
Mogherini has said “the young people in
Africa are not a burden, they are an opportunity” for the continent,
though she hasn’t denied that rapid population growth will be a
challenge.
Africa are not a burden, they are an opportunity” for the continent,
though she hasn’t denied that rapid population growth will be a
challenge.
What has gone unsaid, at least
officially, is that a doubling of Africa’s population in the next few
decades will rapidly absorb any development progress, leaving even the
most colossal international investment plan scrambling
to catch up.
officially, is that a doubling of Africa’s population in the next few
decades will rapidly absorb any development progress, leaving even the
most colossal international investment plan scrambling
to catch up.
And comments like those by Tanzanian
President John Magufuli, who recently called on the women of his country
to abandon contraception and produce more babies, may well have
provoked even more concern among European politicians
and given rise to fresh doubts about the responsibility of some African
rulers.
President John Magufuli, who recently called on the women of his country
to abandon contraception and produce more babies, may well have
provoked even more concern among European politicians
and given rise to fresh doubts about the responsibility of some African
rulers.
Readmission agreements for African migrants, which play a role in all of the EU’s negotiations, are also progressing slowly.
The money that migrants send home to
their families from Europe is currently more important than investment
pledges from the north; pledges which will only pay out in the future.
their families from Europe is currently more important than investment
pledges from the north; pledges which will only pay out in the future.
Official statements from the EU have also
carefully avoided topics like corruption insecurity, so as not to
create political resistance. The hope is that private investors will not
be put off, and instead will see the promise
of Africa’s economic possibilities and allow guarantees from the EU and
development banks to calm their nerves.
carefully avoided topics like corruption insecurity, so as not to
create political resistance. The hope is that private investors will not
be put off, and instead will see the promise
of Africa’s economic possibilities and allow guarantees from the EU and
development banks to calm their nerves.
