Europe’s race to catch up in Africa

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Since more and more refugees come from Africa, wooing Europe, the local governments and relies on enhanced cooperation. However, whether investors and free trade will help the African countries, is uncertain.

The Africa policy of the Europeans has been a graveyard for words, good intentions and unredeemed promises. Since the refugee crisis, but the interest in a new strategy for cooperation with the continent has risen steeply. European visitors must see that China has established itself with billions in investments long ago in great style. Are you afraid to be in the second row is displaced. In his state of the Union address this week, President of the Commission Jean-Claude Juncker has therefore announced once more, “a new Pact with Africa.”

More investment, more work, more training

In the next budget period, the EU will increase the Budget for Africa to 40 billion euros. And this money is to multiply private investors – you want to facilitate the EU, for example, with risk guarantees, the decision for a commitment in African States. At the same time, Brussels seeks strengthened cooperation with the development banks of the member States and the European investment Bank (EIB), which are involved in the programs. The EIB about provides by 2020, six billion euros to combat the reasons for Flight, which is intended to trigger investments of around 35 billion euros.

The EU wants to promote vocational education and training in Africa and to Low-Tech High-Tech to follow

The focus is on education and jobs. In the next five years, the so-called Alliance for Africa, wants to create ten million Jobs, 750,000 people will receive vocational training, more than 100,000 students from the exchange program Erasmus benefit. The Numbers of fireworks to the EU Commission, also major investments for Transport and road infrastructure, as well as the energy supply.

After the endless repetition of good intentions, asked, explained EU Commissioner for Development, Neven Mimica, that the plans submitted were for a new approach: “in the past, there was a lack of a coherent economic strategy.” Now they wanted to define, in partnership and cooperation with African countries, where the best development opportunities in any country would, and how could the private sector in such projects.

The EU-Commission is an example of such a tailor-made support: Together with the Dutch development Bank, FMO of the sub-Saharan micro-credits in countries of IDPs, returnees, and small businesses. With a starting capital of 75 million, several hundred thousand Jobs are to be generated.

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“We are already strong political Partner. The next step leads to a genuine economic partnership and to deepen our trade and investment relations,” explains EU chief diplomat Federica Mogherini at the launch of the Africa-EU Alliance in Brussels.

Free trade agreement between the EU and Africa

The EU is, as before, with 36 per cent of the exports the largest trade partner of Africa and is ahead of China and the United States. The European Commission’s aim is to intensify the cooperation and to establish a new contractual Basis. With 52 African countries, there is already partnership agreements, which Were for many – “everything except weapons” – a far-reaching duty-free.

As a next step, the Europeans aspire to a comprehensive free trade agreement between the EU and Africa. This would then have to break down, however, the African partners of their tariff barriers for the most part. Because the one-sided advance of the Europeans offends in principle against the rules of the world trade organization. However, African countries should be allowed to retain a part of their import tariffs to protect their domestic agriculture.

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Critics complain that a fair exchange is functioning now, to be crowded because of the cheap European products on African markets. And where low prices, farmers in Europe have caused injury to, get this, at least, compensation via the EU direct payments. African small-scale farmers would be jeopardised, however, in existence.

NGOs urge, therefore, that for the trade between poor and rich countries, the same rules could apply. Nigeria as one of the most important countries in West Africa refuses, for example, so far, a fair economic partnership agreement with the EU to sign. The balancing of interests in this field is in a particular case more complicated, as it is the big announcements of the EU suggest.

The Challenge Of Demography

After demographers had calculated that the population will increase in Africa by 2050 to two billion people, reacted European politicians are alarmed. Since then, government leaders such as Emmanuel Macron and Angela Merkel tirelessly to African countries in order to advertise there for economic cooperation and development. The idea of more and more migrants from Africa, might seek a better future in Europe, in the hectic political activity.

Migration from Africa is to stop the EU as far as possible

Also, the EU foreign policy chief Mogherini does not deny that population growth is a challenge that you must overcome. You can’t formulate because of cultural and political sensitivities, however, clear that a doubling of the population of Africa within a few decades, absorbing the development progress faster than they could be with one of the most powerful international investment. “The young people in Africa are not a burden, they are an opportunity” for the continent, says EU chief diplomat Federica Mogherini, therefore be careful.

Statements like those made by Tanzania’s President, John Magufuli, who asked recently, the women of the country who omit contraception and to produce more Babies, likely to the dismay of European politicians and new doubts about the accountability of some of the African have the power to fire.

Also, the readmission agreement for migrants from Africa, playing in all negotiations, the EU has a role to progress part slow or be implemented slowly. The money to send the migrants to their families back home, is currently even more important as the investment of the Europeans, the only pay off later commitments.

Similarly, issues like lack of security and corruption in official position, be careful not be avoided, in order to generate political resistance. The hope is that private investors are still not deterred, the economic opportunities of Africa to use and your nerves by guarantees from the EU and the development banks to calm down.