The European Union is increasing its focus on strategic investments in Africa through development finance institutions, aiming to strengthen economic ties and enhance sustainable growth.

Target Information

The current focus of the European Union's Global Gateway Forum is on enhancing strategic investments in Africa, specifically aimed at strengthening sustainable infrastructure and fostering equal partnerships. Despite this commitment, there is a troubling disparity between Europe's exports and investments in Africa, as evidenced by the EU's exports to Africa totaling €170.4 billion in 2023, which accounts for just under 3% of the EU’s total goods exports. In contrast, a mere quarter of Africa's imports by value are sourced from the EU.

Moreover, the EU's foreign direct investment (FDI) in Africa is largely concentrated within select sectors such as extractives, finance, and infrastructure, and is limited to a few key countries including South Africa, Nigeria, Egypt, and Morocco. Unfortunately, this investment approach typically favors short-term, risk-averse strategies that yield minimal economic spillovers, thereby failing to tap into the vast economic potential that Africa offers.

Industry Overview

The investment landscape in Africa is improving, yet significant challenges remain. Development finance institutions (DFIs) are becoming instrumental in diversifying investment flows and unlocking opportunities within African markets. DFIs have the unique capacity to na