by Martin Banks
The EU-Africa relationship offers great investment and trade opportunities, according to Europe’s business community. But they also warn that “stronger and more targeted” action is needed from policymakers is needed to overcome existing hurdles. Although the EU remains the top trading partner for African countries – with an estimated €467.2 billion in goods and services trade – the share of African imports in total EU trade has been declining. This has prompted a new warning from the business world, contained in a policy paper published on 24 September.
Comment on the paper was swift with BusinessEurope Director General Markus J. Beyrer leading the way. He said, “With the youngest and fastest-growing population on the planet, Africa is set to become a key driver of the global economy in the coming decades. The EU must unlock the full potential of its relationship with this crucial region.
The EU should support African partners in making the African Continental Free Trade Area a reality and streamline existing trade frameworks – particularly rules of origin – while expanding current agreements to include services, competition and intellectual property. It is equally important to improve the investment climate across Africa by fostering robust institutions, legal certainty and good governance.
It is crucial to support governments in building skills and education, expanding access to finance and developing infrastructure.” The top official added that Africa and the EU are essential partners in the global transition to clean and renewable energy. The EU, he argues, should deploy a range of instruments, including the new Clean Trade and Investment Partnerships and Sustainable Investment Facilitation Agreements, to support this collective effort.
Meanwhile, MEPs have welcomed a new agreement that they say will forge “longer, smarter and more effective” InvestEU loan programme to boost investment, drive innovation, and strengthen Europe’s competitiveness. “This agreement ensures that InvestEU will continue uninterrupted as one of the EU’s most successful programmes.
We have safeguarded continuity and stability for businesses and investors alike,” said Aura Salla (EPP), the Chief Negotiator for the Investment Omnibus in the Budgets Committee. “With 1.2 billion Euro in additional guarantees, we are enabling up to 60 billion Euro in new investments and thus injecting fresh momentum into Europe’s economy, boosting competitiveness, and supporting SMEs and innovators through projects across the Union.”
Markus Ferber MEP, EPP Group’s Negotiator for the Investment Omnibus in the Economic and Financial Affairs Committee, emphasised: “InvestEU has proven its worth. Today, we are giving the engine more horsepower and removing unnecessary weight. Each euro from the EU budget crowds in several more from private investors.
That makes it worthwhile to top up the programme. The extra guarantee is fully financed from reflows; no fresh money is needed, keeping the EU budget intact while boosting market confidence. The EPP Group has fought hard for an InvestEU that is more accessible, efficient, and impactful. Today’s deal proves that responsible investment and reduced red tape go hand-in-hand,” Salla added. “InvestEU is a flagship for Europe’s competitiveness. This agreement shows that the Parliament stands for practical solutions and EU programmes that deliver real results.”
“The Investment Omnibus is also part of the EU’s simplification agenda. We have fewer forms and more deals. We are cutting red tape, not corners. Fewer indicators, fewer reports, and a clearer definition of small companies will save businesses real money and will ensure that projects get implemented more quickly,” Ferber concluded.
By: N. Peter Kramer