Insight
Europe needs a strong Africa, but will it work to achieve one? by Katherine Pye, 3 December 2020
The massive problems created by COVID-19 in Africa offer Europe a chance to promote a new partnership. But upgrading the relationship will require the EU to confront both illicit financial flows and a looming debt crisis. The EU has ostensibly been trying to move towards a ‘partnership of equals’ with Africa for decades, but a donor-recipient relationship still largely dictates Europe’s policy towards the continent. COVID-19 has worsened this power asymmetry, as many sub-Saharan African countries face crippling debt and collapsing public infrastructure. But the pandemic also offers an opportunity for Africa to break out of a cycle of indebtedness and aid dependency. Europe should play its part in debt relief and dedicate more resources to curbing illicit financial flows. Doing so could pave the way to a more equal EU-Africa partnership, which European Commission President Ursula von der Leyen has made it a strategic priority to achieve. Africa’s economic development is at a critical juncture: the African Continental Free Trade Area (AfCFTA), which launched its first operational phase in July 2019, commits 54 nations to removing tariffs on goods and liberalising trade in services. If successfully implemented, the AfCFTA may raise GDP and exports substantially. A prosperous Africa would be a valuable export market for the EU. Stronger African economies with a plentiful labour supply could also allow Europe to diversify its supply chains away from Asia, and China, in particular. A wealthier Africa could more easily absorb economic shocks from future crises without recourse to international aid. In the words of EU High Representative Josep Borrell “we need a strong Africa, and Africa needs a strong Europe.” But Africa will be unable to realise its economic potential without a more robust response to the crisis caused by COVID-19. The pandemic has devastated the economies of many African countries; the World Bank predicts that sub-Saharan Africa will suffer a 3.3 per cent drop in GDP this year. COVID-19 has triggered a crash in commodity prices and a sharp decline in tourism and international remittances; the latter are expected to shrink by 21 per cent in 2020. In February, African finance ministers announced that a $100 billion support package was urgently needed.
CER INSIGHT: Europe needs a strong Africa, but will it work to achieve one? 3 December 2020
info@cer.EU | WWW.CER.EU
1