The European Commission (EC) and the African Development Bank Group have solidified a groundbreaking Financial Framework Partnership Agreement, aimed at funding infrastructure projects throughout Africa. This renewed collaboration underscores a significant increase in the European Union’s contributions to co-finance operations with the African Development Bank over the past two years, now totalling 972 million EUR in blending operations and guarantees. Anticipated to rise further following the agreement’s signing, this partnership signals the commitment to driving sustainable development across the African continent.
Strengthening Collaboration for funding African infrastructure projects
Signed by EC President, Ursula von der Leyen and African Development Bank Group President, Dr. Akinwumi Adesina, this agreement not only reaffirms the partnership between the two organisations but also unlocks a myriad of opportunities for joint financing initiatives focused on infrastructure projects.
For the European Union (EU), this aligns with the objectives of the Global Gateway strategy, designed to establish sustainable and trustworthy connections with partner countries. Under the Africa-EU Global Gateway Investment Package, spanning from 2021 to 2027, the EU has pledged 150 billion EUR to support the African continent’s development.
The EC expressed enthusiasm about the prospects of this collaboration, stating, they are “very glad to launch a new era of cooperation between Europe and Africa. Together we will build clean and competitive economies across the continent, promote skills, create jobs and opportunities, especially for Africa’s vibrant youth.”
Whilst the African Development Bank echoed this sentiment, emphasising, “The signing of this important Financial Framework Partnership Agreement marks the positive evolution of the relationship between Africa and the European Union.”
Empowering Transformative Investments
The agreement for funding African infrastructure projects sets the stage for a series of strategic investments in Sub-Saharan Africa, particularly in vital areas such as transport corridors, energy, and digital connectivity. Among the notable joint projects is the development of the “Lobito Corridor,” an innovative transport network, built to enhance export opportunities for Zambia, Angola, and the Democratic Republic of Congo. The corridor aims to facilitate the movement of goods and citizens, thus fostering economic growth and regional integration.
Aligned Priorities and Programming
The EC and the African Development Bank Group share closely aligned strategic priorities and programming, with cooperation dating back to a 2014 agreement. Negotiations for this new agreement commenced following the implementation of the EC’s new Financial Regulation in 2018, taking into account developments in both organisations and provisions concerning compliance with EU Restrictive Measures.
About the African Development Bank
The African Development Bank Group serves as Africa’s premier development finance institution, comprising the African Development Bank, the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). With a presence in 41 African countries and an external office in Japan, the Bank is dedicated to fostering economic development and social progress across its 54 regional member states.
About Global Gateway
Global Gateway represents the EU’s commitment to reducing global investment disparities and enhancing smart, clean, and secure connections across digital, energy, and transport sectors. Through a Team Europe approach, which unites the EU and its Member States, and European development finance institutions, the strategy aims to mobilise up to 300 billion EUR in public and private investments from 2021 to 2027, closing the global investment gap and fostering sustainable development worldwide.
In conclusion, the funding of African infrastructure projects outlined in the Financial Framework Partnership Agreement between the EC and the African Development Bank Group marks a significant milestone in the quest for sustainable development across Africa. By unlocking new funding opportunities for African infrastructure projects, this partnership underscores a commitment to fostering economic growth, promoting regional integration, and empowering local communities.
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Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_443
