HOW WILL THE NEW EUROPEAN-AFRICAN INVESTMENT PACKAGE HELP AFRICA

 

IS EUROPE SERIOUS ABOUT HELPING AFRICA DEVELOP?

United Nations (UN) data shows that the European Union (EU) is African’s largest trading partner, but Africa’s trade with China is growing fast. The (EU) and the African Union (AU) have established a new partnership to help in fostering the continent’s digital   transformation. However, China is already ahead on that -  about 50 % of Africa’s 3G networks and 70% of Africa’s 4G networks are run by Chinese companies. But the African continent still offers multiple opportunities in as far the digital market is concerned. So, can the EU remain Africa’s biggest partner of choice?

The new European-African 2030 Joint Vision stipulates that the EU intends to scale up investments, support innovation and promote digital rights in Africa. Leaders from both continents have announced a $170B European investment package for Africa, and they want to increase Africa’s use for the internet from 33% to at least 60% to help close the digital divide between the EU and Africa. The EU and African leaders met in Brussels last month – trade security and the pandemic were on the agenda throughout the summit. Six African countries were selected to establish their own mRNA vaccine production sites after the African leaders complained of inequality of distribution. But china has already spent billions on Africa through its belt and road initiative and has become the continent’s biggest render.

How Will Africa Benefit?

Africa is in dire need of massive injections of foreign investment if any economic improvement is to be attained. This massive injection of investment is much more needed in this realm of digital space given that only 33% of Africans access the internet. For development to take place there is more that is required and if the EU wants to continue to be African’s number one business partner EU need to take this agreement seriously. The EU has been dealing with Africa for a long time without substantial competition, but the coming of China should act as an incentive to make EU proactive as never before.

In the past, the EU approach to Africa development was dealt with a rather postcolonial mindset of master-slave relationship – a remnant of the colonial period. In the current agreement the language has changed quite a lot. Obviously, this has been a result of the threat of China’s growing economic cooperation with many African countries. Further, the deal’s potential for job creation is very high owing to the fact Africa’s population is a dominated by young people willing to explore the technological world.

If the deal is handled in a paradigm than that in which the West dictates what is good for Africa, then the onus will be on the African people to define what their objectives are in this digital era and call on partners to join them to help in achieving those objectives. There is already great sign is some Eastern African countries in embracing digital money technologies like Bitcoin. What remains to be seen how far the EU will go in cutting off previous colonial tendencies – who is going to keep the data? Will EU respect African data sovereignty?

What Can Europe Offer Better Than China?

In a continent where majority of the people are poor, bringing in new technologies is not enough. If the EU is to succeed, first of all, there is need of revising price tags therefore making the technology affordable for most Africans. Furthermore, if European countries are to be embraced by Africans there is need of making sure that they pay proper taxes and also be actively involved in developing surrounding communities.

The other role Europe can play is creating an environment which fosters creative and innovation. This can be in form of sponsoring locally developed technologies – this may be in form of funds or offering expert advice. Such innovations can have a market not only in Africa but in other continents, including Europe itself. This is very hard with China because of China’s legal requirements – the Chinese try to protect their own.

Conclusion

There is still so many obstacles in the way for a tangible European-African economic collaboration. Apart from the problem of China, Africa still lacks the skills that are required to develop technological devices. That gap should be filled up by the universities. However, no matter the obstacles this deal heralds a new era of European-African development. If the terrain is leveled carefully Africa will emerge triumphant and be able to compete with developed countries in technological development.

 

 

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About Author

Am a holder of the Bachelor of Laws(Hons) from the Catholic University of Malawi. I am an avid writer mainly interested in history, politics and philosophy. I have also been an editor of The Wave Magazine, a students magazine of the Catholic University of Malawi.