The European Union places special importance on its relations with African states and the African Union in its geostrategic thinking. Key areas of cooperation include trade (225 billion euro annually), security issues such as terrorism, migration, human rights, democratic processes, and economic development (65 billion euro annually). However, these efforts have been affected by unequal power dynamics and resource differences. The challenges posed by climate change and ongoing energy security issues in Europe have prompted the shift towards green energy and the diversification of trade partnerships for raw materials. This presents an opportunity to redefine the relationship between Europe and Africa.
![International Institute for Environment and Development](/sites/default/files/styles/var_desktop/public/2024-08/51538940709_328d0d415b_c.jpg.jpg?itok=Vtf1bfi_)
In 2021, the European Union adopted the European Green Deal, the goal of which is to make Europe the first climate-neutral continent. This means moving away from fossil fuels and towards renewable energy sources. Under the European Critical Raw Materials Act, the European Union identified 34 minerals crucial for the green transition, including lithium, cobalt and nickel for batteries, gallium for solar panels, and boron for wind turbines, among others.
The African continent holds significant reserves of 24 of these critical raw materials (CRMs) including 88% of the global reserves of platinum, 48.35% of cobalt, 42.76% of manganese, 79.14% of phosphates, and 23.87% of bauxite. In many of these countries, the industry is not developed enough to process raw materials locally and export finished products to foreign markets. As a result, they have to sell unprocessed raw materials and import finished products at inflated prices, which hampers their economic development.
Therefore, African countries are aiming to reshape their trade partnerships. Some of them (like Zimbabwe or Ghana) introduced export bans and restrictions on various CRMs, that aim to oblige international companies to process raw minerals and add value to them locally.
The changing raw material policy of African countries is not the only challenge that the European Union, which is looking for new CRM supply chains, must face. The most important challenge is the domination of raw material extraction and export in Africa by Chinese companies. In addition, since 2013, China has been strengthening its influence on the continent through infrastructure investments as part of the Belt and Road Initiative.
Therefore, in order to strengthen its presence on the continent and thus secure access to the resources, Europe has decided to launch its own, huge investment program. Initiated in 2021, Global Gateway is a joint venture of Team Europe, i.e. the European Union, its member states and financial institutions, the aim of which is to support the deep, structural reconstruction of African countries. As part of it, by 2027, 150 billion euros in public and private investments are to be allocated to the socio-economic development, as well as the green and digital transformation of African countries. Global Gateway also aims to provide them with the capital and technologies necessary to the enhancement of mineral processing capabilities and value addition.
The development model promoted by the European Union in Africa is closely linked to the European Green Deal. It focuses, among other things, on providing access to affordable, reliable and sustainable energy, implementing mechanisms for the sustainable use of natural resources, protecting the environment, or introducing an environmentally friendly agriculture system called “The Farm to Fork Strategy”.
In a broad perspective, these solutions are beneficial for African countries. For instance, in 2020 approximately 600 million people in sub-Saharan Africa – 48% of the entire continent’s population – had no access to electricity. However, the International Energy Agency (IEA) projects that by 2030, renewable energy sources will meet the energy needs of over 60% of households that previously had no access to electricity. Similarly, in 2019 only 45% of the population in the region had access to smartphones. This percentage could grow to 65% by 2025 thanks to investments in solar panels made from the Global Gateway, which will provide the necessary infrastructure to meet the additional energy demand 4G and 5G networks require.
African countries will also benefit in the long term from the transformation of their agriculture. By implementing changes supported by the European Union, they can enhance local food security and bring their agricultural products in line with international standards, including those established by the European agricultural policy. This will enable African countries to play a more active role in global food trade.
Since the launch of Global Gateway, Team Europe has funded numerous infrastructure projects that will continue to impact the development of African industry and the diversification of African economies. One example is the funding of transport corridors on the Libreville-Kibri-Douala-N'Djamena route for 58.6 million euros and on the Mombasa-Kisangani route for 91 million euros. These corridors are part of the Strategic Corridors that will be built in West, Central, East, Southern, as well as Northern and East Africa. They are expected to facilitate trade and mobility within Africa, as well as between Africa and Europe.
The changes in the EU's climate policy extend beyond Europe and have significant implications for the rest of the world, particularly for African countries, which are increasingly important strategic partners for the EU. The European Union's investments in Africa serve multiple purposes: securing access to vital raw materials for the green transition to ensure Europe's energy security and exerting European soft power to enhance the EU's role on the global stage. Simultaneously, these investments present an opportunity for African nations to develop industries capable of producing modern, globally competitive goods, thus breaking free from the constraints of being solely reliant on raw materials.
A lasting and equitable partnership would not only safeguard the EU's economic interests but also contribute to the industrial development and economic diversification of African countries, fostering their self-sufficiency.