The European Commission (EC) and the African Development Bank Group have formalized a new Financial Framework Partnership Agreement to increase investments in infrastructure projects in Africa on the fringes of this week’s Italy-Africa Summit.
Over the past two years, the European Union has boosted its contribution to co-finance operations with the African Development Bank dramatically, to the point where blending operations and guarantees currently total €972 million. Following the signature of the updated Financial Framework Partnership Agreement, this amount will rise even further.
This historic agreement, which was signed today by Presidents of the African Development Bank Group and the European Commission, Ursula von der Leyen and Akinwumi Adesina, renews the two organizations’ collaboration.
It gives both organizations a plethora of new chances to provide cooperative finance for infrastructure projects. This would align with the EU’s Global Gateway policies, which are centered around establishing reliable and durable relationships with partner nations. The EU will invest €150 billion in the continent of Africa between 2021 and 2027 as part of the Africa-EU Global Gateway Investment Package.
Von der Leyen, the president, stated: “I am delighted to begin a new chapter of collaboration with the African Development Bank Group. Through this agreement, we will be able to fund large-scale infrastructure projects throughout Africa as part of Europe’s global investment plan, known as Global Gateway. Together, we can develop skilled labor, generate jobs and opportunities, and develop clean and competitive economies throughout the continent—especially for Africa’s dynamic youth. I’m excited about the fantastic initiatives we will collaborate on as partners.”
President Adesina stated: “This significant Financial Framework Partnership Agreement’s signature signifies the positive development of the EU’s relations with Africa. It will make it possible for the European Commission and the African Development Bank Group to combine their resources in order to greatly encourage revolutionary investments in African nations and the development of robust and sustainable economies. I am excited about advancing the High 5 strategic priorities of the African Development Bank Group and strengthening our close collaboration with the European Commission.”
A number of investments in energy, digital connectivity, and vital transportation corridors will be made possible in Sub-Saharan Africa thanks to this agreement. One of the primary collaborative initiatives is the creation of the “Lobito Corridor,” a cutting-edge transportation corridor that will improve export opportunities for Zambia, Angola, and the Democratic Republic of the Congo, thereby increasing trade and encouraging citizen mobility.
To raise funds for the development of this corridor, the European Union and the African Development Bank signed a Memorandum of Understanding with Global Partners at the Global Gateway Forum in October 2023. AFC, the US government, and the host countries of Angola, the Democratic Republic of the Congo, and Zambia are other partners.
In their partnership for African development, the European Commission and the African Development Bank Group have closely matched strategic priorities and programming.
