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EU earmarks US$170B to counter China’s influence in Africa
Kaieteur News – The European Union (EU) has recently announced that it has earmarked €150 billion (US$170.5 billion) to counter’s China influence in Africa.
The Brussels Times reported that the EU-African Union gathering which started last Thursday was initially planned for 2020 but was postponed due to the coronavirus pandemic and agenda issues. It was the first time EU and African Union leaders meet in that format since 2017.
European Commission President Ursula von der Leyen.
The EU leaders in their effort to re-engage with African nations and counter the growing influence from China, has made their intentions clear to remain Africa’s partner of choice, by offering the financing package for projects and development on the continent.
The multi-billion investment was announced last week by European Commission President, Ursula von der Leyen, following a two-day summit with the African Union in Brussels, Belgium.
According to the European Commission President, the investment plan in Africa is part of the EU’s Global Gateway project. The EU’s initiative is seen as an alternative to China’s Belt and Road Initiative.
The EU President said that with “regular reporting and accountability”, there would be “pressure on both sides to deliver”. This would provide “checks as to what is still available as financing and what has been allocated already”.
“We face a constant tension between promoting, overselling, and managing people’s expectations,” an EU official said when asked about scepticism over how much of the money was new. “This is a starting point.”
The monies will be pumped into sectors, including, manufacturing, transport infrastructure, green energy, sustainable food chains, health and education. It was reported that the money will come from both public and private sources, with the EU aiming to invest €20 billion (US$ 22,640,000,000) per year in debt, equity and guarantees.
Speaking on behalf of the African Union, Senegalese President Macky Sall applauded the infrastructure investment, saying, “we needed a new relationship based on a shared vision of partnership rather than aid”.
EU’s top diplomat, Josep Borrell, ahead of the summit had said, “We will demonstrate that the European Union is Africa’s most trusted partner. We will thereby also counter negative narratives and disinformation about what Europeans are and what Europeans are doing for, and with, the African people.”
In 2020, the EU was Africa’s largest single trade partner, and China was its second largest. The EU announced that its investment package for Africa is meant to bolster a green and digital transition, accelerate sustainable growth and job creation, and strengthen education and health systems.
The EU is the largest exporter of COVID-19 vaccines and said it has shared almost 145 million doses with Africa, with the goal to reach a total of at least 450 million shots by the summer. However, according to the World Health Organization (WHO), only 11 percent of Africa’s population is vaccinated.
According to the China Africa Research Initiative, China extended US$153 billion to African governments via loans and state-owned company funding between 2000 and 2019. It has become the benchmark for foreign direct investment in the continent, but EU officials rarely refer to China directly.
It was reported that China’s programme aims to develop markets and new trade routes connecting China with the rest of the world by weaving a network of ports, bridges and power plants that will yield diplomatic clout and global power. While, the EU’s project is expected to mobilize, in total, up to 300 billion Euros (US$341 billion) in public and private funds by 2027.
In addition to China, the EU also needs to deal with Russia’s growing influence, notably via a group of private military contractors known as the Wagner Group that the bloc accuses of fomenting violence and committing human rights abuses in Central Africa and the Sahel region.
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