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Business News of Wednesday, 21 May 2025

    

Source: www.ghanawebbers.com

Europe must change its approach to Africa

African leaders have created the African Continental Free Trade Area (AfCFTA). This initiative aims to transform trade within Africa. However, the European Union still believes it is Africa's main partner. While Africa adapts to a multipolar world, Europe remains complacent.

The EU sees itself as a champion of human rights and sustainability. Yet, its trade relationships with Africa tell a different story. The EU has been slow to change its approach. As the African Union’s high representative for relations with Europe, I saw this firsthand.

In 2019, I proposed that the AU negotiate a trade agreement with the EU. This idea aimed to give Africa collective bargaining power. The AU has made progress toward political coherence and is ready for this role. However, the European Commission prefers negotiating with individual countries instead.

As a result, my proposal was blocked. The EU continues to favor bilateral agreements over working with the AU. These agreements often do not meet Africa's needs or priorities. Economic Partnership Agreements (EPAs) reinforce Africa's dependence on commodity exports.

These deals benefit European exporters more than African countries. They limit Africa's ability to develop manufacturing industries or higher-value activities. Meanwhile, EU investments focus on extractive activities rather than strengthening industrial value chains.

The EU’s Global Gateway initiative aims to improve digital and transport links in Africa. However, it lacks ambition compared to China's Belt and Road Initiative or U.S. green-transition packages. The EU is offloading risks onto Africa without providing structural guarantees.

Africa must build productive capacities instead of waiting for concessions from others. It should create its own business ecosystem rather than comply with existing structures. To succeed, Africa needs strategic partners who recognize its agency and invest in its growth.

If the EU wants to be such a partner, it must change its mindset about being Africa's default ally. Influence must be earned through genuine engagement within African institutions like the AU. The EU should align its economic strategies with AfCFTA principles rather than contradict them.

Additionally, development aid should not come with moral strings attached. Instead of micromanaging governance reforms, Europe should support African ambitions in infrastructure and education projects. Co-investing in regional value chains would foster equality between partners.

The EU also needs to rethink policies that distort African food systems and remove barriers for exporters. In international discussions, coordination with the AU on debt reform and climate finance is essential too.

Africa deserves concrete proposals regarding sovereign-debt mechanisms and climate finance responsibilities based on historical context—not just advisory services or political expediency.

The AU must assert itself more boldly in external partnerships while rejecting interference in integration processes within Africa itself. It should invest in developing alternative macroeconomic frameworks as well.

Ultimately, the AU needs to engage actively in multilateral reform as an agenda-setter rather than merely seeking favors from others.

Carlos Lopes is an honorary professor at Nelson Mandela School of Public Governance at Cape Town University and holds various positions related to African governance and climate issues.