In an effort to position Europe as Africa’s investment partner of choice, the European Union (EU) will mobilize $170 billion in investment for development on the continent, according to EU President Ursula von der Leyen.
Announced during a press conference in Dakar, Senegal, last Thursday, the scheme represents the first regional plan under the EU’s Global Gateway, which commits to mobilizing $340 billion to support public and private infrastructure development globally through 2027.
For Africa, the funds will be directed toward renewable energy, natural disaster prevention, internet access, transportation, vaccine production and education, with a target date set for 2030.
“At the summit, investments will be at the heart of the discussions because they are the means of our shared ambition. In this area, Europe is the most reliable partner for Africa and by far the most important,” stated von der Leyen, referring to the upcoming EU – African Union Summit to be held in Brussels this week.
While details of how the funding for Africa will be raised have yet to be disclosed, the Global Gateway scheme at-large leverages the EU, its member states, and their financial and development institutions, including the European Investment Bank and European Bank for Reconstruction and Development.
Meanwhile, the European Fund for Sustainable Development will make available up to $153 billion for infrastructure investments, up to $20 billion will be generated in grant funding from the EU budget, and European financial and development finance institutions have up to $164 billion in planned investments.