Motorcades swept alongside Luanda’s neon-lit waterfront at nightfall, previous idle cargo cranes and half-finished glass towers, earlier than veering uphill towards the Salão Protocolar da Presidência – the angular concrete pavilion perched above the bay that hosted the seventh African Union-European Union Summit. Inside, beneath banners urging “efficient multilateralism”, dozens of leaders converged to revive one among Africa’s most strategically vital partnerships.
The Summit delivered greater than a routine communiqué. Europe backed African value-addition in crucial minerals for the primary time, recognised the blue economic system as a strategic sector, and dedicated to constructing regional green-industrial hubs.
Collectively, the bulletins mark a notable shift in Europe’s strategy, from extractive commerce patterns to co-investment and industrial partnership.
Europe backs worth addition
Whereas the EU is the highest buying and selling accomplice of African international locations collectively and their largest export market, forward of China, India and the USA, critics have lengthy contended that restricted worth addition inside Africa makes for a lopsided buying and selling partnership outlined by useful resource extraction and purchases of uncooked agricultural merchandise.
One of many clearest wins for African leaders thus got here in an space that has lengthy been a sticking level: for the primary time Europe formally backed Africa’s ambition to course of crucial minerals at dwelling slightly than export uncooked supplies. The communiqué pledged assist for “native and regional refining and processing of crucial uncooked supplies”, doubtlessly unlocking financing for smelters, refineries and battery-precursor vegetation on African soil.
The transfer was linked the shift to the EU’s Important Uncooked Supplies Act, adopted in 2023 to diversify provide chains and cut back dependence on China. Luanda marks the primary time that its logic has visibly prolonged to supporting processing in Africa.
Tighisti Amare, director of the Africa Programme at Chatham Home, tells African Enterprise that the transfer aligns with the financial priorities African governments have been stressing for years. “Africa is asking for extra industries, extra manufacturing, as a result of we want so many roles,” she says. Processing, whether or not by nationwide or regional value-chain fashions, is central to that ambition. For her, Luanda “is usually a turning level” if capital now strikes into Africa’s productive capability.
For Paul Walton, govt director of the Africa-Europe Basis, the brand new minerals language is a part of a wider recognition: that Africa’s progress is dependent upon worth addition, regional manufacturing and smarter capital deployment. “The place we have to focus now could be the final mile of co-investment,” he says. “The duty is to cement the funding case, construct pipelines of bankable initiatives, and deal with misconceptions round threat.
“The outdated mannequin of pledges and hand-outs has run its course,” he says. “Luanda was about co-investment, risk-sharing and constructing actual worth. The bottleneck is the final mile: getting cash into initiatives at velocity and scale.”
His basis’s State of Africa–Europe 2025 report requires streamlined approvals, higher challenge pipelines and focused de-risking instruments to speed up capital flows into vitality, digital infrastructure and oceans. “What we want now is not only extra money, however sensible cash,” he says.
A tighter window for supply
Twenty-five years after the AU–EU partnership was launched in Cairo, progress on that entrance stays uneven. Critics say the “Joint Imaginative and prescient 2030” agreed in Brussels in 2022 has moved slowly. African officers commonly cite sluggish European procedures, delayed disbursements and restricted threat urge for food.
In the meantime, Africa’s geopolitical decisions have expanded. “Most African international locations at the moment are intentionally pursuing multi-alignment,” Amare tells African Enterprise. “They work with China, the Gulf, India, Turkey and more and more Russia. That offers them extra leverage, and it pushes Europe to ship otherwise.”
One establishment adapting to Africa’s altering wants is the European Funding Financial institution (EIB). The EU’s lending arm despatched vice-president Ambroise Fayolle to showcase initiatives it sees as “win-win” cooperation. Final yr, 40% of the EIB’s exterior financing – €3.1bn – went to Africa.
“Africa has been a strategic accomplice for a very long time,” Fayolle says. “At occasions of geopolitical uncertainty, the interlinkage between our economies turns into much more vital.”
He highlights the Financial institution’s work on wind-power growth in Cabo Verde, cocoa-sector traceability in Côte d’Ivoire, and new mRNA vaccine manufacturing in Rwanda, Senegal and South Africa – initiatives that pair African priorities with Europe’s local weather, well being and industrial targets.
Fayolle acknowledges issues that European financing is just too sluggish and too conservative. To deal with this, the EIB says it’s increasing mutual-reliance agreements with the African Improvement Financial institution, World Financial institution and others that enables lenders to depend on a single set of due-diligence paperwork slightly than duplicating months of appraisal. “This reduces duplication and hurries up implementation,” he says.
Rethinking threat
For each continents, probably the most persistent impediment to funding is perceived threat. Walton says that misconceptions about African funding situations nonetheless block capital from flowing into high-potential sectors. “We have to proceed to handle misconceptions on threat and the concept that Africa lacks funding alternatives,” he tells African Enterprise. “The problem now could be the final mile – scaling capital into actual initiatives.”
Fayolle agrees, saying the most important constraint on European financing is investor notion – and the absence, till lately, of dependable threat metrics. “Fairly often in Europe… what buyers say is we lack information. We don’t have sufficient information to put money into Africa,” he says.
To counter this, he factors to the World Rising Market Danger Database, a consortium created in 2009 however solely lately expanded and opened extra totally to the general public. The platform swimming pools anonymised, disaggregated credit-risk information from almost 30 improvement banks and has sharply grown in protection and granularity prior to now two years, providing the primary comparable, sector-level proof of default and restoration patterns throughout areas.
“While you have a look at the figures, what you see is the area on the planet that has the bottom credit score threat is Africa,” Fayolle says. He hopes this new visibility will shift European boardroom choices and speed up approval of bankable initiatives.
A delicate pivot
The Luanda occasion adopted swiftly on the heels of South Africa’s internet hosting of the G20 Summit. As one of many members of the G20, the European Union was represented on the Summit the best ranges.
Within the months main as much as the occasion, European leaders strongly backed South African President Cyril Ramaphosa’s agenda, which targeted on the issues of Africa and different rising nations.
“There’s been a variety of financing dedicated by the EU all year long in direction of South Africa in varied industries,” says Chris Vandome, senior analysis fellow with Chatham Home’s Africa and world economic system and finance programmes. “The EU is absolutely build up its Pretoria presence, to cowl each South Africa and the area, so it’s actually a focus for them.”
Each Johannesburg and Luanda left the impression of a partnership quietly shifting gears. Europe’s first-ever endorsement of African mineral processing in Luanda, the emergence of strong threat information, and a stronger mandate for co-investment mirror a deeper recalibration.
Whether or not this marks a real reset or just one other rhetorical flip will rely on supply. However Africa analysts say this summit moved long-discussed themes – worth addition, inexperienced industrialisation, blue-economy funding and smarter risk-sharing – from the margins to the centre of AU–EU cooperation for the primary time.
“There’s been a variety of financing dedicated by the EU all year long in direction of South Africa in varied industries, says Vandome. “The EU is absolutely build up its Pretoria presence, to cowl each South Africa and the area. It’s actually a focus for them.”
