#AUEU #AfricaEuropeAlliance

Strengthening the EU’s partnership with AfricaAfrica-Europe Alliance for Sustainable Investment and Jobs

and jobs climate

In his State of the Union Address on 12 September 2018, President Jean-Claude Juncker proposed to deepen the EU’s economic and trade relationship with Africa through investment and job creation.

Strategic investment and job creation

Investment in education and matching skills

Business environment and investment

Economic integration and trade

Foreign Direct Investment stock in Africa

EU and Member States

United States

China

Source: Eurostat, UNCTAD World InvestmentReport 2016, Japan External TradeOrganisation

40% | €291 billion

7% €51.52 billion

5% €36.16 billion

Africa in 2016

United States

Source: OECD DAC

55% | €22.66 billion

29% €11.76 billion

No data available for China

Africa’s trade in goods in 2017 per partner

EU

China

United States

Source: IMF

36% | €248 billion

16%

6.5%

€109 billion

€45 billion

Total trade (exports and imports)

EU and Member States

The EU is already Africa’s first partner in trade, in foreign investment and in development.

A new Africa-Europe Alliance for Sustainable Investment and Jobs

The aim of the Alliance is to take the EU’s partnership with Africa to the next level, building on the commitments taken at the African Union – European Union Summit in Abidjan in November 2017. To do so, the Commission proposes to boost investment, further attract private investors, support education and skills development for employability, as well as boost trade and improve the business climate.

Three months on, work is already well underway to meet the commitments under each of the four strands.

“Europe and Africa share a long history and a bright future. This is why I proposed a new Africa-Europe Alliance for Sustainable Investment and Jobs, to help attract both European and African investment and create 10 million jobs in Africa over the next five years. Translating words into action, we have already taken a series of measures to bring our ambitions to life."

Jean-Claude Juncker, High-Level Forum Africa-Europe, Vienna, 18 December 2018

Boosting strategic investment and strengthening private sector participation

The private sector holds the largest potential for generating jobs and growth and it is therefore essential to boost responsible private investments — both domestic and foreign — in Africa.

NASIRA Risk-Sharing Facility - A powerful example of financingfor under-served entrepreneursThe EU is partnering with the Dutch development bank FMO to address the high risks involved in lending to under-served

people.

Financing: €75 million from the EU External Investment Plan’s Guarantee

Total investment generated: expected €750 million, with the aim of creating or supportingup to 800 000 jobs

External Investment Plan 2017-2020

EU grants used for blending and guarantees €4.5 billion

Already in motion

Total expectedinvestments by 2020

€44 billion

€3.7 billion

*EU financial input and expected investments

€37.1 billion

Strategic investment and job creation

12September Launch of the Africa-Europe Alliance

(State of the Union)

Progress (December 2018)COMMITMENT

100%

Commit €4.5 bnunder the EIP

to leverage €44 bn by 2020September 2018:

€2.4 bn committed(€24 bn expected leverage)

€3.7 billion committed - with leverage target: €37.1 billion

Next steps: the EU External Investment Plan is well on track to fully mobilise its resources and therefore achieve the expected €44bn leverage by 2020.

Strengthening business environment and investment climate Boosting private sector investment requires peace, security and stability, and an enabling investment climate and business

or increased private sector credit.

€300-350 millioncommited per year €541 million invested in 2018

Develop strengtheneddialogue 9 Sustainable Business for Africa (SB4A) dialogues

12SeptemberLaunch of the Africa-Europe Alliance

(State of the Union) Progress (December 2018)COMMITMENT

100%

Business environmentand investment climate

Next steps: the commitment to dedicate over €300-350 million per year to this area is well on track to be met for the period 2018-2020. In addition, around 25 public-private dialogues on “sustainable business for Africa” show good progress.

Working together in strategic areas

Establishsectoral groups

before the end of 2018

Working together instrategic areas

12SeptemberLaunch of the Africa-Europe Alliance

(State of the Union) Progress (December 2018)COMMITMENT

100%

A key component of the Africa-Europe Alliance is close collaboration between both sides. Four joint task forces have been set up, where joint work and exchanges of best practices will be facilitated in the areas of rural Africa, digital economy, energy, as well as connectivity and transport.

Rural Africa Task force:

recommendations published

Energy Task force: launched in

November 2018

Digtal economy Task force: launched in

December 2018

Connectivity/Transport Task force:

established, launch in January

2019

Investing in people by investing in education and skills Africa has the youngest population of any region of the world and continues to experience strong demographic growth. Providing people with access to education is of paramount importance.

In order to boost investment and create jobs, skills need to be matched with the demands of the labour market. Despite current efforts in education (the EU is investing €1.34 billion between 2014 and 2020 in bilateral education programmes), more investment is needed, both from the EU and its Member States and from its African partners.

Investment in educationand matching skills

and jobs

Mobility of 35 000by 2020

September 2018: 16 000

Over 25 000Erasmus+(9 000 expected for the 2018 call)

12SeptemberLaunch of the Africa-Europe Alliance

(State of the Union) Progress (December 2018)COMMITMENT

100%

Next steps: several initiatives will be launched in 2019: a new Erasmus+ call, an intra-Africa mobility scheme, a pilot programme for vocational and educational training (VET), as well as a second phase of the VET toolbox. These initiatives, together with previous ones, will enable the commitment of 35 000 mobility beneficiaries by 2020 to be met.

Tapping the full potential of economic integration and trade

.Building on the African Continental Free Trade Area implementation, the long-term perspective is to create a comprehensive continent-to-continent free trade agreement between the EU and Africa. To prepare this, Economic Partnership

of the African Continental Free Trade Area.

Next steps: : support to the African Continental Free Trade Area is ongoing and builds on existing trade agreements and arrangements between the EU and African countries, which will enable to meet the commitment made by the Alliance to support Africa’s economic integration process and boost EU-Africa trade.

12SeptemberLaunch of the Africa-Europe Alliance

(State of the Union) Progress (December 2018)COMMITMENT

Economicintegration and trade

Support African Continental

Free Trade Area

€50 million until 2020

to support AfCFTA

EU Budgetary period 2014-2020

Other funds, bringing total to€42 billion

Dedicated funds for Africa (grants)

€32.5 billion

Expected other funds

Dedicated funds for Africa (grants)

€40 billion

EU Budgetary period 2021-2027 Proposed

Mobilising a substantial package of financial resourcesThis plan will be supported by the Commission’s current and future budget, for which Africa is highlighted as a priority region.

First €3m contract signed on 18/12/2018 with United Nations Economic Commission for Africa (UNECA)

Libya

Senegal

GambiaGuinea-Bissau

Sierra Leone

Liberia Togo

Equatorial Guinea

EgyptAlgeria

Mali

Ghana

Burkina Faso

Côte d’Ivoire

BeninNigeria

Guinea

Niger

Chad

Cameroon

Democratic Republic of the Congo

Central African Republic

South Africa Lesotho

Eswatini

Angola

Congo

Gabon

São Tomé and Principe

Zimbabwe

Zambia Malawi

Tanzania

Rwanda → Burundi →

Kenya

Uganda

BotswanaNamibia

Sudan

Ethiopia

Mauritania

Morocco

Tunisia

Eritrea

Djibouti

Somalia

Madagascar

Mozambique

Comoros

South Sudan

Western Sahara

Cabo Verde (*)

Countries with trade agreements with the EU in force (bilaterally or as part of Economic Partnership Agreements)

Countries with agreements with the EU pending application

Countries with paused negotiations for trade agreements with the EU

Trade agreements, arrangements and schemes in place between Africa and the EU

Currently, 52 African countries benefit from a trade agreement, an Economic Partnership Agreement (EPA) or a trade arrangement (Everything But Arms and the two Generalised Scheme of Preferences, Standard GSP and GSP+) with the EU to grant privileged access to its market. These countries pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth.

Everything But Arms for least developed countries — grants full duty free and quota free access to the EU Single Market for all products (except arms and armaments)

Standard General Scheme of Preferences (GSP) for low and lower-middle income countries — reduces EU import duties for about 66% of all product tariff lines

(*) General Scheme of Preferences (GSP+) for vulnerable low and lower-middle income countries — grants full removal of tariffs on over 66% of EU tariff lines

Seychelles

Mauritius