Brussels: Europe and the Arabs
A European statement issued in Brussels on Sunday evening said that on the sidelines of the Italian-African summit, the European Commission and the African Development Bank of the African Development Bank Group formalized a new financial framework partnership agreement to boost investments in infrastructure projects in Africa. Financing operations with the African Development Bank have increased significantly over the past two years, now reaching €972 million in consolidations and guarantees. This number will rise further after the signing of the new financial framework partnership agreement.
This historic agreement was signed yesterday, Sunday, by the President of the European Commission, Ursula von der Leyen, and the President of the African Development Bank Group, Dr. Akinwumi Adesina, and it renews the partnership between the two organizations. It opens a wide range of opportunities for both organizations to provide new joint financing for infrastructure projects. For the EU, this would be in line with the priorities of the Global Gateway, and its strategy to provide sustainable and reliable connections with partner countries. Between 2021 and 2027, through the EU-Africa Gateway Global Investment Package, the European Union will support the African continent with investments worth €150 billion.
President von der Leyen said: “I am very pleased to launch a new era of cooperation between Europe and Africa. Together we will build clean and competitive economies across the continent, enhance skills, and create jobs and opportunities, especially for vibrant African youth. The new agreement concluded today between the Commission The European Union and the African Development Bank Group will operate ambitious infrastructure projects in Africa under the Global Gateway, Europe's investment strategy for the world. I look forward to the great projects we will work on together as partners.
Dr. Adesina said: “The signing of this important Financial Framework Partnership Agreement represents a positive development in the relationship between Africa and the European Union. It will enable the African Development Bank Group and the European Commission to leverage each other's resources to significantly support transformative investments in African countries and build resilient and sustainable economies. I look forward to expanding our strong partnership with the European Commission and making significant progress towards achieving the five top strategic priorities of the African Development Bank Group.
This agreement will enable the implementation of a series of investments in the Sub-Saharan Africa region in strategic transport corridors, energy and digital connectivity. Among the key joint projects is the development of the “Lobito Corridor”, an innovative transport corridor that will enhance the export potential of Zambia, Angola and the Democratic Republic of the Congo, to enhance the circulation of goods and encourage the mobility of citizens. At the Global Gateway Forum in October 2023, the European Union and the African Development Bank signed a memorandum of understanding with global partners to mobilize financing for the development of this corridor. Other partners include the host governments of Angola, the Democratic Republic of the Congo, and Zambia, the United States government, and the African Finance Corporation.
The European Commission and the African Development Bank Group have closely aligned strategic priorities and programmes. The cooperation agreement signed in 2014 expired in April 2019. Negotiations on a new agreement began following the implementation of the European Commission's new financial regulation in 2018. These negotiations also considered developments in both organizations, in particular in new provisions relating to the compliance of the African Development Bank Group. With the restrictive measures of the European Union.
The African Development Bank Group is the leading development finance institution in Africa. It consists of three distinct entities: the African Development Bank, the African Development Fund (ADF), and the Nigerian Trust Fund (NTF). With a presence in 41 African countries and an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries.
The Global Gateway is a positive offer from the European Union to reduce investment inequality around the world, promote smart, clean and secure communications in the digital, energy and transport sectors, and to strengthen health, education and research systems.
The Global Gateway Strategy embodies the Team Europe approach, which brings together the European Union, EU Member States and European development finance institutions. Together, we aim to mobilize up to €300 billion in public and private investments from 2021 to 2027, creating essential linkages rather than dependencies, and closing the global investment gap.