The European Commission and the African Development Bank Group have signed a new deal to boost investments in transport infrastructure projects in Africa on the sidelines of the Italy-Africa Summit.
The agreement signed on Sunday by European Commission President Ursula von der Leyen and AfDB President Akinwumi Adesina renews the partnership between the two organisations to deliver new joint financing for infrastructure projects, AfDB said in a statement.
Among the noticeable joint projects is the development of the “Lobito Corridor,” a transport corridor that seeks to enhance exports of resources for Zambia, Angola, and the Democratic Republic of Congo, to boost the circulation of goods and to promote the mobility of citizens.
“For the EU, this would be in keeping with the priorities of the Global Gateway, its strategy to deliver sustainable and trusted connections with partner countries. Between 2021 and 2027, through the Africa-EU Global Gateway Investment Package, the EU will support the African continent with €150 billion worth of investments,” AfDB said.
At the Global Gateway Forum in October 2023 the EU and the African Development Bank signed an MoU with global partners to mobilise financing for the development of this corridor. Other partners include the host governments of Angola, DRC and Zambia, the US Government and the Africa Finance Corporation.
The Global Gateway is seen as an initiative to check China’s Belt and Road Initiative.
The first Global Gateway Forum was launched in Brussels on October 25, 2023 and featured 90 top government representatives from more than 20 countries, including 40 leaders and ministers mostly from across the Global South.
Initiated by the 27-member EU bloc, the Global Gateway Forum said it at the time had 66 billion Euros ($69.6 billion) in deals at the opening of the summit and signed an additional 3 billion Euros ($3.2 billion) agreements with governments across Europe, Asia, and Africa. The agreements covered projects in raw minerals, green energy, and transport corridors.
In her speech, Ursula von der Leyen said “Global Gateway is about giving countries a choice, and a better choice” for “financing and building clean infrastructure”, vowing to pursue high-quality investments.
The EU and the AfDB agreement, the statement said, will enable a series of investments in sub-Saharan Africa in strategic transport corridors, in energy and digital connectivity.
“The European Union’s contribution to co-finance operations with the African Development Bank has significantly increased over the last two years, now amounting to €972 million in blending operations and guarantees. This figure will further increase after the signing of the new Financial Framework Partnership Agreement,” AfDB said.
Leyen termed the deal a new era of cooperation with the AfDB, adding that it would empower the EU to support ambitious infrastructure projects across Africa under Global Gateway, Europe’s investment strategy for the world.
“Together we will build clean and competitive economies across the continent, promote skills, create jobs and opportunities, especially for Africa’s vibrant youth. I’m looking forward to the great projects we will work on together, as partners,” Leyen said
On his part, President Adesina said the signing of the partnership agreement marks the positive evolution of the relationship between Africa and the EU.
“It will enable the African Development Bank Group and the European Commission to leverage on their respective resources to significantly support transformative investments in African countries and build resilient and sustainable economies. I am looking forward to scaling up our strong partnership with the European Commission and to making huge progress towards the achievement of the African Development Bank Group’s High 5 strategic priorities,” he added.
The US has also expressed interested in the Lobito Corridor with President Joe Biden on November 30, 2023 saying he was happy with the Partnership for Global Infrastructure and Investment, and excited to build the Lobito economic corridor, which is seen as Washington’s answer to Beijing’s BRI.
“Together, we’ll be mobilizing more than a million dollar — $1 billion for railway lines that extend from Angola to Zambia to the DRC, and ultimately to the Indian Ocean, connecting the continent for the first time from east to west,” Biden said in the joint press briefing with President João Lourenço in Washington.
Biden added, “This first-of-its kind project is the biggest U.S. rail investment in Africa ever, one that’s going to create jobs and connect markets for generations to come”.
