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Europe wants to offer a new partnership to Africa. This is the subject of the European Union – African Union summit which opens this followingnoon in Brussels. At the heart of this project is the question of the financing of African economies.
Because the financing needs are huge on the continent and because there is a lot of room for improvement in this area. A margin of progress compared to what China has done. Europe is now offering Africans the opportunity to take part in its Global Gateway, its global program created to compete with the Silk Roads. Even if Europe prides itself on being the first investor in Africa, the first trading partner, in country rankings China is well ahead of the entire African continent. And then there is a margin of progress because Europe is sometimes too slow to open the tap of the financing recognized the Elysée by detailing the axes of this new partnership.
Europe offers an envelope of 150 billion euros to participate in the development of Africa, is it up to the challenges?
Senegalese President Macky Sall, current chairman of the African Union, assesses the needs at 221 billion euros in the coming years. To absorb the shock of the pandemic and to revive the economy; the European contribution might cover more than half of the needs but it needs to be specified. Will these 150 billion spread over seven years facilitate the mobilization of private funds? Europe is a reassuring operator, but will it manage to attract enough companies ready to invest in Africa, a region still considered risky? The financial situation of many African countries has deteriorated during the pandemic, but this reputation as a risk zone is partly usurped and it makes it more difficult to raise capital. However, the continent is thirsty for financing to build its infrastructure. We will also have to see if the projects that Europe wants to support coincide with the expectations of Africans.
Infrastructure in the energy transition, digital, health are the priorities set by Europe
Priorities which, according to Brussels, must pass through compliance with standards for the environment, labor law or the fight once morest corruption. This framework will affect the nature of the projects. Africans would like to have more information on their content, especially in terms of the environment. The Chinese – who had big energy needs – invested a lot in African countries rich in hydrocarbons, without worrying too much regarding the consequences on the climate. On a continent where electrification is still very low, the use of oil and gas is still a necessary option today, especially in countries that are well endowed with it. Will the development of these deposits and distribution be operations compatible with the Europeans’ green transition agenda? Why would Europe, which accepts gas in its own energy transition, refuse to finance gas projects in Africa? Africans will appreciate the quality of the partnership offered by the Europeans in the answers given to this type of question.
