Financial institutions

EU financial institutions pledge 30 billion euros for Africa ahead of summit

European banks and financial institutions have pledged to invest 30 billion euros in sub-Saharan African countries on the eve of the European Union-African Union summit in Brussels.

In a joint statement issued on Wednesday, the French Development Agency (AFD) pledged to support the private sector and infrastructure in the form of loans and budget guarantees between 2023 and 2027.

“It’s about building a new alliance between our two continents, an alliance of all players in solidarity and sustainable investment, public and private,” said AFD Director General Rémy Rioux.

The money is part of the Global Gateway plan, which is supposed to mobilize up to 300 billion euros in public and private funds by 2027 in infrastructure projects around the world, half of which will go to the African continent.

The investment will go into renewable energies, the reduction of the risks of natural disasters, access for Africans to Internet networks, transport, the production of vaccines or education.

France, which holds the rotating EU presidency, said Europe “must meet the financing needs of the African continent” and that the Brussels summit “must mark a return by the EU to these issues”, according to a press release from the Elysée. .

European Commission President Ursula von der Leyen traveled to Senegal last week to meet President Macky Sall, who also chairs the African Union.

She announced a 150 billion euro ($170 billion) investment plan in Africa under the Global Gateway, widely seen as an alternative to China’s Belt and Road initiative.

China’s program aims to develop markets and new trade routes linking China to the rest of the world by weaving a network of ports, bridges and power stations that will bring diplomatic influence and global power.