EU chief unveils $200 billion investment plan for Africa

DAKAR (AFP) – EU chief Ursula von der Leyen on Thursday (Feb 10) unveiled plans to muster investment of more than €150 billion (S$230 billion) for Africa, proclaiming Europe to be the continent’s biggest and “most reliable” partner.

The scheme is the first regional plan of the European Union’s Global Gateway – an investment blueprint that seeks to mobilise up to €300 billion for public and private infrastructure around the world by 2027.

Seen as a response to China’s Belt and Road initiative, the strategy will use funding from EU institutions and member countries to leverage private-sector investment.

The EU has set a target date of 2030 for the African funds under the plan, according to a document from the European Commission.

The money will go towards renewable energy, reducing the risk of natural disasters, internet access, transport, vaccine production and education in Africa, the document said.

Speaking at a press conference in the Senegalese capital Dakar, von der Leyen told reporters she was “proud” to announce plans for Africa, where the aim was to amass at least €150 billion in investment.

She did not offer details about how the funds would be raised or spent.

The EU’s website says money under the Global Gateway will be earmarked for “smart, lean and secure links” in communications and transport and for boosting health, education and research.

Von der Leyen, who is president of the powerful executive European Commission, arrived on Wednesday to prepare for a summit between the EU and the African Union on Feb 17-18.

“At the summit, investments will be at the heart of the discussions because they are the means of our shared ambition,” von der Leyen said.

“In this area Europe is the most reliable partner for Africa and by far the most important,” she added.

Global Gateway is rooted in “the values to which Europe and Africa are committed, such as transparency, sustainability, good governance and concern for the well-being of the people,” von der Leyen said.

China and Russia

Speaking to AFP before arriving in Senegal, von der Leyen warned that foreign investment in Africa too often came with “hidden costs” attached.

Critics often accuse other large investors in Africa, such as China or Russia, as being less stringent on environmental protection or human rights.

China in particular is accused of luring African countries into debt traps, offering huge unaffordable loans. Beijing disputes the charge, arguing that its loans are designed to alleviate poverty.