European Commission is strategizing to forge a new
partnership with Africa on a free-trade deal between the two continents.
partnership with Africa on a free-trade deal between the two continents.
The Africa-Europe Alliance dubbed “co-owned economic partnership’’ is
for Sustainable Investment and Jobs does not offer new money or funding instruments.
for Sustainable Investment and Jobs does not offer new money or funding instruments.
EU Senior official said: “We have the
ongoing political framework,” the official said, referring to the joint
Africa-EU strategy, reaffirmed at the African Union-European Union
summit in Abidjan, Côte d’Ivoire, last year.
ongoing political framework,” the official said, referring to the joint
Africa-EU strategy, reaffirmed at the African Union-European Union
summit in Abidjan, Côte d’Ivoire, last year.
“But you don’t have a joint economic strategy from both sides, and that is what we’re trying to do.”
The alliance will support the creation of 10 million jobs in the next five years according to the EC.
It envisages a greater role for the
private sector via initiatives such as the European External Investment
Plan; ongoing student exchanges; an improved business climate through
country dialogues; and building on trade relationships,
such as Economic Partnership Agreements.
private sector via initiatives such as the European External Investment
Plan; ongoing student exchanges; an improved business climate through
country dialogues; and building on trade relationships,
such as Economic Partnership Agreements.
The long-term goal, announced by EC
President Jean-Claude Juncker at his final State of the Union speech in
Strasbourg, France, on Wednesday, is to “develop the numerous trade
agreements between African and EU countries into a
continental free-trade agreement, an economic partnership between equal
partners.”
President Jean-Claude Juncker at his final State of the Union speech in
Strasbourg, France, on Wednesday, is to “develop the numerous trade
agreements between African and EU countries into a
continental free-trade agreement, an economic partnership between equal
partners.”
“Seeing the EU-Africa relationship
solely through the prism of development would be “insufficient and in
fact humiliating for Africa,” Juncker added to applause from members of
the European Parliament and Commission.
solely through the prism of development would be “insufficient and in
fact humiliating for Africa,” Juncker added to applause from members of
the European Parliament and Commission.
However, the EU official said a
free-trade deal between the two continents depends on first making the
African Continental Free Trade Area, or AfCFTA, agreed by AU member
states in March, a reality.
free-trade deal between the two continents depends on first making the
African Continental Free Trade Area, or AfCFTA, agreed by AU member
states in March, a reality.
“Of course, it’s a long, long way to get
there in terms of harmonizing the standards, facilitating the customs
controls etc.,” the official said. The commission’s plan includes
boosting technical assistance for AfCFTA to €50 million
($58.09 million) between 2018-2020.
there in terms of harmonizing the standards, facilitating the customs
controls etc.,” the official said. The commission’s plan includes
boosting technical assistance for AfCFTA to €50 million
($58.09 million) between 2018-2020.
The response from European civil society and African partners to the planned alliance was lukewarm.
“Having heard that there would be a big
announcement during the president’s speech this morning, we were all
expecting something really new,” said
announcement during the president’s speech this morning, we were all
expecting something really new,” said
Viwanou Gnassounou, assistant secretary-general in the sustainable economic
development and trade department of the
African, Caribbean, and Pacific group of states. “But we just heard that
there will be ‘strengthened commitment,’ so we’re looking forward to
hearing something a little bit more concrete.”
African, Caribbean, and Pacific group of states. “But we just heard that
there will be ‘strengthened commitment,’ so we’re looking forward to
hearing something a little bit more concrete.”
Gnassounou also criticized EPAs, which the EC plan portrayed as “building blocks” to a larger EU-Africa trade deal.
“The way they have been finalized and
implemented, not only are [they] not encouraging regional integration,”
he said. “They are not preparing the way to create regional value
chains, creating growth and employment.”
implemented, not only are [they] not encouraging regional integration,”
he said. “They are not preparing the way to create regional value
chains, creating growth and employment.”
The EC plan was similarly met with
concern by NGOs, with the activist group ONE taking issue with Juncker
saying, “Africa does not need charity, it needs true and fair
partnerships.”
concern by NGOs, with the activist group ONE taking issue with Juncker
saying, “Africa does not need charity, it needs true and fair
partnerships.”
“Aid is not charity, it’s an investment
in our common future,” the group said in a statement. “Today, more than
100 million children in Africa are out of school. Europe can’t tell
those children that their dream of learning to
read and write is ‘a thing of the past.’”
in our common future,” the group said in a statement. “Today, more than
100 million children in Africa are out of school. Europe can’t tell
those children that their dream of learning to
read and write is ‘a thing of the past.’”
Maria Heubuch, a Greens member of the
European Parliament from Germany, lamented Juncker’s failure to put
significant new funds behind Africa’s economic development. Investments,
jobs, and training are important, she said in a
statement, “but without money, it is just empty words.”
European Parliament from Germany, lamented Juncker’s failure to put
significant new funds behind Africa’s economic development. Investments,
jobs, and training are important, she said in a
statement, “but without money, it is just empty words.”
The EU plan comes after China announced
$60 billion in financing for Africa last week through grants,
interest-free and concessional loans, credit lines, and the purchase of
African imports.
$60 billion in financing for Africa last week through grants,
interest-free and concessional loans, credit lines, and the purchase of
African imports.
“The Chinese go the typical Chinese way
where they put one big figure forward,” the EU official said. “But then,
when you start digging a bit deeper, you realize the $60 billion is
composed of very shaky elements.
where they put one big figure forward,” the EU official said. “But then,
when you start digging a bit deeper, you realize the $60 billion is
composed of very shaky elements.
“For instance, $10 billion for stronger
imports of African products to China … what does that mean? We’re not
coming up with one big figure [because] that depends on the buy-in of
the African partners, the stronger coordination
inside Europe and of course the buy-in of the private sector.”
imports of African products to China … what does that mean? We’re not
coming up with one big figure [because] that depends on the buy-in of
the African partners, the stronger coordination
inside Europe and of course the buy-in of the private sector.”
