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Europe and Africa Forging A New Relationship

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Prime Minister Giorgia Meloni and AU Moussah Faki Europe and Africa

By Kestér Kenn Klomegâh

Late January 2024, prominent African leaders and corporate business executives attended the summit intended to forge a new relationship between Europe and Africa. It was hosted by Italy’s hard-right Prime Minister Giorgia Meloni who who came to power in 2022. The significance of the summit was to reshape and place on track the European policy priorities and, at the same time, to highlight economic diplomacy and fix the long-trailed systematic development plans for Africa.

Within the context of the geopolitical changes, African political leaders have shown high enthusiasm and pragmatism, in developing relations with external countries. As trends in their approach with a new sense of diligent optimism show, African leaders fundamentally support the current global reconfiguration. Far beyond analytical talks of the scramble for resources by external powers, Africa is noticeably glued to the United States and Europe, while capitalizing on laudable offers from other players such as China, Russia, India, Turkey and those from the Arab world.

Given the current situation in the world, Africa has to step forward to harvest, with appropriate mechanisms and transparent procedures, concrete development-finance agreements, infrastructure engagements, trade and economic cooperation and above all humanitarian assistance for the most disadvantaged segments of the population that these external players offer at these summits. African leaders have to tone down all ideological manifestations and capitalize on existing challenges, contradictions and complexities of these geopolitical players including the United States, Europe Asia and Latin America to address instability, and socio-economic deficits and effectively coordinate strategic policies toward achieving sustainable development in this multipolar world.

At least during the past two decades, Africa’s invitations to international summits and conferences have been primarily due to, perhaps, a complex relationship with China. China started when Russia exited, and China has landmark achievements across the continent. Russia is struggling to regain or retrieve part of its Soviet-era influence. Now, the United States and Europe aim to counter the fast-rising influence of China and Russia.

Despite the lengthy process of persuasion and consensus building on previous partnerships, Europe still faces challenges. Late January 2024, Italy became the European country of convergence, with Italy as a key bridge between Africa and Europe. Approximately two dozen African leaders, the African Union, top European Union and United Nations officials and representatives from international lending institutions were in Rome for the summit, the first major event of Italy’s Group of Seven presidency.

Meloni’s so-called “Mattei Plan” is named after Enrico Mattei, the founder of Eni – Italy’s state-owned energy giant. In the 1950s, he advocated a cooperative stance towards African countries, helping them to develop their natural resources. “The basis of the Mattei Plan is a new approach – non-predatory, non-paternalistic but also not charitable,” Meloni told state-run RAI station. “It’s an approach of equals, to grow together.”

Political Diplomacy

Italy being part of the European Union has played on historical heart-settings with Africa. Over the past years, it has forged multi-dimensional cooperation as part of the foreign policy, and similarly the members of the European Union. Now these European Union members are pushing hard to showcase the future trajectory in their individual and collective relations with Africa. Europe promises to develop large-scale investment in various sectors, especially in the energy sectors in the continent, and straining efforts at curbing migration of Africans to Europe.

A former Prime Minister of the Republic of Chad and now the African Union Commission Chairperson, Moussa Faki Mahamat, jolted his Italian hosts with sharply worded comments at the opening of the summit dubbed “A Bridge for Common Growth” held in Rome. Rome holds the presidency of the G7 group of nations this year and has vowed to make African development a central theme, in part to increase influence in a continent where powers such as China, Russia, India, Japan and Turkey have been expanding their political clout.

“We are not beggars, our ambition is much higher, we want a paradigm shift for a new model of partnership that can pave the way towards a fairer and more coherent world. You can well understand that we can no longer be satisfied with mere promises that are often not kept,”  he told the gathering.

With the rapidly changing times, Europe has to wake up to the immense potential of Africa. European Union and individual members have made financial pledges but seriously lack practical evidence of undertaking projects. And African leaders at the summit were frank, unreservedly endorsed criticisms of making distinction between rhetoric and reality as suggested in remarks by the AU Chairperson Moussa Faki.

Reports pointed to Mahamat who categorically emphasized the necessity for Africa to be consulted on priorities and stressed the urgency of moving from promises to concrete actions. He underscored the frustration with unfulfilled commitments, calling for a more results-oriented approach.

The plan, which includes more than €5.5 billion ($6 billion) in investments, credits, gift operations, and guarantees – including building a training centre on renewable energy in Morocco, education projects in Tunisia, and other projects in Algeria, Mozambique, Egypt, the Republic of Congo, Ethiopia and Kenya – was not well received by the African leaders in attendance, who said that they had not been consulted in the formation of the plan.

Italy’s first African-born parliamentarian Aboubakar Soumahoro, who is deputy and coordinator of the parliamentary intergroup for Sub-Saharan Africa, also criticized the plan.

Cristiano Maugeri of Action Aid Italia lamented that the government had excluded any consultation with civil society groups active in African development to formulate the plan, and said that it regardless represented something of a repackaging of existing projects. “We are talking about initiatives that have already been presented in other contexts, only with a new stamp on them,” he said.

The UN Deputy Secretary-General Amina Mohammed praised Italy for focusing on the key pillars of energy and food systems, saying they complement an approach already mapped out by the African Union. But she lamented that overall, the 2030 targets of the globally-approved U.N. Sustainable Development Goals are “falling woefully short” and further urged the government of Italy to make such deep, effective, and equal partnerships a reality, and to use its presidency of the G7 to work with other countries to do likewise.

Given the fact that Italy currently holds the rotating chair of the Group of Seven (G7) major Western powers, the narrative around Africa has to change, to promote African interests during the G7 presidency. Europe has to take advantage of the largest renewable energy resources the vast arable land for agriculture, and the possibility of industrial production for the latest – the African Continental Market (AfCFTA).

African-Italian Negotiations

Italian Prime Minister Giorgia Meloni unveiled a long-awaited initiative aimed at helping African countries prosper in return for curbing illegal immigration, pumping a preliminary 5.5 billion euros ($5.96 billion) into the scheme. The schemes include efforts to develop African agribusiness and mobilize Italian transport and major works companies.

During a post-summit news conference, Meloni acknowledged the importance of translating promises into tangible projects on the ground. With more than 25 countries in attendance, European Commission President Ursula von der Leyen and representatives of UN agencies and the World Bank, Meloni explained the plan would initially be funded to the tune of €5.5 billion, some of which would be loans, with investments focused on energy, agriculture, water, health and education.

The prime minister, however, emphasized the need for collaboration with the private sector and international bodies, such as the European Union, to ensure the initiative’s success.

Energy needs stand at the core of Italy’s initiative, with the country aiming to serve as a gateway for African natural gas into European markets. The ambitious plan gains significance in the context of the European Union’s efforts to diversify energy supplies following Russia’s invasion of Ukraine, the former Soviet republic. Meloni outlined a series of pilot projects in individual countries that would enable Africa to become a major exporter of energy to Europe, helping it reduce its dependence on Russian energy.

European Global Gateway

In the previous years, the European Union has sought to build strongly on its existing economic and trade relationship with Africa. It held the last summit in February 2022,  with African leaders and the African Union. It has been attempting to bring Africa and Europe closer together for strategic, long-term footing to develop a shared vision for EU-Africa relations in a globalized world.

In an official document, it said it would (i) Support AfCFTA implementation and the green transition; (ii) Improve trade and investment climate between the EU and Africa; (iii) Reinforce high-level public private dialogue; (iv) Enhance long-term dialogue structures between EU and Africa Business Associations; (v) Unlock new business and investment opportunities, including in the areas of manufacturing and agro-processing as well as regional and continental value chains development.

Referred to as the Joint EU-Africa Strategy, the document takes into cognizance the most common interests such as climate change, global security and the achievement of the United Nations Sustainable Development Goals (SDGs).

The potential to increase trade, economic growth, job creation and integration across the continent remains enormous, because today, only around 17% of African trade flows take place between African countries. “Of course, there will be challenges along the way, and the EU stands ready to help. We want to share the lessons from our process of economic integration, and with our new Global Gateway Strategy, we have demonstrated that we are ready to support massive infrastructural investment in Africa,” Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade as well as chairing the Commissioners’ group on an Economy that Works for People, noted when the EU-African Union Summit was held in February 2022.

Dombrovskis said: “We continue to support the implementation of the African Continental Free Trade Area. Achieving this will represent a historic milestone. the EU has a diverse range of trade agreements with countries in Africa. These are dynamic partnerships, in which we advance step-by-step for our mutual benefit. We aim to widen and deepen these economic and partnership agreements with those African countries that are willing to do so.”

The EU-Africa summit focuses on the search for more effective ways to scale-up sustainable development in Africa, according to various reports. Due to the shifting of geopolitics, the continent now increasingly turning into an intersection of global power players and it faces a precarious complex future. But what is important here is that the European players have to incorporate most aspects of partnership directions (adopt more effective ways to scale up sustainable development in Africa) within the framework of the 2030 Agenda of the United Nations and Agenda 2063 of the African Union.

World

United States Congress Pursuing AGOA Extension

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African Growth and Opportunity Act AGOA

By Kestér Kenn Klomegâh

After the expiration of bilateral agreement on trade, the US Congress as well as African leaders, highly recognizing its significance, has been pursuing the extension of the African Growth and Opportunity Act (AGOA). The agreement, which allows duty-free access to American markets for African exporters, expired on September 30, 2025.

The US Congress is advancing a bill to revive and extend AGOA, but South Africa’s continued inclusion remains uncertain. The trade pact still has strong bipartisan support, with the House Ways and Means Committee approving it 37-3. However, US Trade Representative, Jamieson Greer, raised concerns about South Africa, citing tariffs and non-tariff barriers, and said the administration could consider excluding the country.

This threat puts at risk the duty-free access that has significantly benefited South African automotive, agricultural, and wine exports. The debate highlights how trade policy is becoming entangled with broader diplomatic tensions, casting uncertainty over a key pillar of US-Africa economic relations.

Nevertheless, South Africa continues to lobby for inclusion. South Africa trade summary records show that the US goods and services trade with South Africa estimated at $26.2 billion in 2024. The US and South Africa signed a Trade and Investment Framework Agreement (TIFA) as far back as in 2012.

The duty-free access for nearly 40 African countries has boosted development and fostered more equitable and sustainable growth in Africa. By design AGOA is a useful mechanism for improving accessibility to trade competitiveness, connectivity, and productivity. During these past 25 years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa.

Key features and benefits of AGOA:

It’s worth reiterating here that during these past several years, AGOA has been the cornerstone of US economic engagement with the countries of sub-Saharan Africa. In this case, as AGOA is closely working with the African Continental Free Trade Area (AfCFTA) Secretariat and with the African Union (AU), trade professionals could primarily leverage various economic sectors and unwaveringly act as bridges between the United States and Africa.

* Duty-free Access: AGOA allows eligible products from sub-Saharan African countries to enter the US market without paying tariffs.

* Promotion of Economic Growth: The program encourages economic growth by providing incentives for African countries to open their economies and build free markets.

* Encouraging Economic Reforms: AGOA encourages economic and political reforms in eligible countries, including the rule of law and market-oriented policies.

* Increased Trade and Investment: The program aims to strengthen trade and investment ties between the United States and sub-Saharan Africa.

With the changing times, Africa is also building its muscles towards a new direction since the introduction of the African Continental Free Trade Area (AfCFTA), which was officially launched in July 2019.

In practical terms, trading under the AfCFTA commenced in January 2021. And the United States has prioritized the AfCFTA as one mechanism through which to strengthen its long-term relations with the continent. In the context of the crucial geopolitical changes, African leaders, corporate executives, and the entire business community are optimistic over the extension of AGOA, for mutually beneficial trade partnerships with the United States.

Worthy to say that AGOA, to a considerable degree, as a significant trade policy has played a crucial role in promoting economic growth and development in sub-Saharan Africa.

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Accelerating Intra-Africa Trade and Sustainable Development

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Intra-Africa Trade

By Kestér Kenn Klomegâh

Africa stands at the cusp of a transformative digital revolution. With the expansion of mobile connectivity, internet penetration, digital platforms, and financial technology, the continent’s digital economy is poised to become a significant driver of sustainable development, intra-Africa trade, job creation, and economic inclusion.

The African Union’s Agenda 2063, particularly Aspiration 1 (a prosperous Africa based on inclusive growth and sustainable development), highlights the importance of leveraging technology and innovation. The implementation of the African Continental Free Trade Area (AfCFTA) has opened a new chapter in market integration, creating opportunities to unlock the full potential of the digital economy across all sectors.

Despite remarkable progress, challenges persist. These include limited digital infrastructure, disparities in digital literacy, fragmented regulatory frameworks, inadequate access to financing for tech-based enterprises, and gender gaps in digital participation. Moreover, Africa must assert its digital sovereignty, build local data ecosystems, and secure cyber-infrastructure to thrive in a rapidly changing global digital landscape.

Against this backdrop, the 16th African Union Private Sector Forum provides a timely platform to explore and shape actionable strategies for harnessing Africa’s digital economy to accelerate intra-Africa trade and sustainable development.

The 16th High-Level AU Private Sector forum is set to take place in Djibouti, from the 14 to 16 December 2025, under the theme “Harnessing Africa’s Digital Economy and Innovation for Accelerating Intra-Africa Trade and Sustainable Development”

The three-day Forum will feature high-level plenaries, expert panels, breakout sessions, and networking opportunities. Each day will spotlight a core pillar of Africa’s digital transformation journey.

Day 1: Digital Economy and Trade Integration in Africa

Focus: Leveraging digital platforms and technologies to enhance trade integration and competitiveness under AfCFTA.

Day 2: Innovation, Fintech, and the Future of African Economies

Focus: Driving economic inclusion through fintech, innovation ecosystems, and youth entrepreneurship.

Day 3: Building Policy, Regulatory Frameworks, and Partnerships for Digital Growth

Focus: Creating an enabling environment for digital innovation and infrastructure through effective policy, governance, and partnerships.

To foster strategic dialogue and action-oriented collaboration among key stakeholders in Africa’s digital ecosystem, with the goal of leveraging digital economy and innovation to boost intra-Africa trade, accelerate economic transformation, and support inclusive, sustainable development.

* Promote Digital Trade: Identify mechanisms and policy actions to enable seamless cross-border digital commerce and integration under AfCFTA.

* Foster Innovation and Fintech: Advance inclusive fintech ecosystems and support innovation-driven entrepreneurship, especially among youth and women.

* Policy and Regulatory Harmonization: Build consensus on regional and continental digital regulatory frameworks to foster trust, security, and interoperability.

* Encourage Investment and Public-Private Partnerships: Strengthen collaboration between governments, private sector, and development partners to invest in digital infrastructure, R&D, and skills development.

* Advance Digital Inclusion and Sustainability: Ensure that digital transformation contributes to environmental sustainability and the empowerment of marginalized communities.

The AU Private Sector Forum has held several forums, with key recommendations. These recommendations provide valuable insights into the challenges and opportunities facing the African private sector and offer guidance for policymakers on how to support its growth and development.

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Russia’s Lukoil Losses Strategic Influence Across Africa

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Russias Lukoil

By Kestér Kenn Klomegâh

Lukoil, Russia’s energy giant, has seriously lost its grounds across Africa, due to United States sanctions. Sanctions have complicated the company’s potential continuity in operating its largest oil field projects, grappling its investment particularly in Republic of Ghana, Democratic Republic of Congo, and Federal Republic of Nigeria.

Reports indicated the sanctions are further dismantling most of Lukoil’s operations, causing significant staff layoffs in its offices worldwide. For instance, Lukoil’s significant upstream operations in the Middle East include a 75% stake in Iraq’s West Qurna 2 oilfield and a 60% stake in Iraq’s Block 10 development. In Egypt, the company holds stakes in various oilfields alongside local partners.

Lukoil has until December 13, 2025, to negotiate the sale of most of its international assets, including those in Asia, Africa and Latin America. It has already terminated several important agreements that were signed with international partners due to difficulties in circumventing the sanctions.

Reports said calculated efforts to diversify exploration business relations is turning extremely complex, and current at the cross-roads, Lukoil will have to ultimately give up existing contracts and agreements it had signed with external countries.

Lukoil’s website reports also pointed to reasons for abandoning oil and gas exploration and drilling project that it began in Sierra Leone.  According to those reports, Lukoil could withdraw from almost all of the projects in West Africa.

In addition to geopolitical sanctions, technical and geographical hitches, Lukoil noted on its website, an additional obstacles that “the African leadership and government policies always pose serious problems to operations in the region.” Similarly, the Kremlin-controlled Rosneft abandoned its interest in the southern Africa oil pipeline construction, negatively impacted on Angola, Mozambique, South Africa and Zimbabwe.

United States sanctions has hit Lukoil, one of the Russia’s biggest oil companies, like many other Russian companies, that has had a long history shuttling forth and back with declaration of business intentions or mere interests in tapping into oil and gas resources in Africa.

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