Investment plan

EU increases investment plan for Africa to counter China: report

March 11, 2022 9:07 a.m. STI

Brussels [Belgium]Mar. 11 (ANI): The European Union recently pledged a $170 billion aid package to African countries in a bid to counter China’s growing influence in Africa, according to a news outlet.
Last month, Heads of State or Government of African Union (AU) and European Union (EU) member states gathered for the sixth European Union – African Union Summit in Brussels.
During the summit, EU and AU leaders agreed on a common vision for a renewed partnership. According to an official statement, this partnership aims to promote lasting and sustained security, peace, economic development and prosperity for the citizens of both Unions.
It aims to promote common priorities, shared values ​​and international law. It also includes the protection of human rights for all, gender equality and the empowerment of women in all spheres of life.
The €150 billion ($170 billion) Africa-Europe investment package, announced at the summit, also supports a common ambition for 2030 and the AU’s Agenda 2063.

Notably, the summit took place a few months after the meeting of the Forum on China-Africa Cooperation (FOCAC).
At the Africa-China summit, Chinese President Xi Jinping pledged around $40 billion in investments for Africa, a third less than Beijing’s previous pledges. Even when it comes to Chinese loans, there has been a significant drop in numbers from previous years, The HK Post reported.
According to the report, Chinese lending amounted to $7.6 billion in 2019 from $29.5 billion in 2016. At the summit, Xi had highlighted Europe’s colonial history with Africa and said on the other hand noted that “over the past 65 years, China and Africa have forged an unshakeable brotherhood in our struggle against imperialism and colonialism”.
Experts believe the latest EU aid is part of the Global Gateway Initiative (GGI) which was unveiled by the EU last year as an alternative to China’s Belt and Road Initiative (BRI).
Last December, International Partnerships Commissioner Jutta Urpilainen said the European Commission (EC) was launching a $340 billion global gateway to strengthen lasting ties around the world.
According to the official document, the new strategy aims to boost global interconnectivity by building and strengthening high-level sustainable digital, economic, transport, research and health systems across the world.
The European Commission added that to implement the strategy, the European Union would use the so-called “Team Europe” approach, encouraging member states with their financial and development institutions, including the European Investment Bank , mobilize the private sector to leverage investments. for transformational impact. (ANI)