China’s ongoing inf luence in Africa as well as the continent’s renewed focus on improving intra-continental trade is forcing the Europeans to sit up and pay attention. For decades the European Union’s (EU) economic and security interests in Africa have gone unchallenged and trade, under the numerous agreements, has bumbled along.According to the Young Initiative on Foreign Affairs and International Relations (IFAIR), since 2009 China has become the second-largest trading partner of the African continent, and the largest single trading partner of the sub-Saharan countries. China has staked a lot on Africa. In 2018, its trade with the continent rose by 19.7%, while increasing by just 12% with the rest of the world. Chinese investments in Africa continue to rise.In January, trade under the African Continental Free Trade Area (AfCFTA), Africa’s most ambitious integration initiative, kicked off. Embedded in the Agenda 2063 of the African Union, the main objective is to create a single continental market for goods and services with free movement of people and investments, thus expanding intra-African trade across the continent.Trade analysts believe that while still in its infancy this agreement can play an important role in helping African countries diversify their productive capacities. In addition, it has helped African countries become more assertive and vocal in their demands from their global counterparts in the matter of trade.Covid-19 has made matters more complex. A recent study by the United Nations Development Programme (UNDP) projects that the pandemic will result in persistent shifts in African trade patterns by 2030. African countries are expected to trade more with China and less with Europe, the United States (US) and India.“African leadership should use this opportunity to increase internal continental trade by increasing export diversification, reducing non-tariff barriers to trade, and accelerating the adoption of the AfCFTA,” reads the report. “This free trade area should not only result in a shift in trade between countries, but also the opportunity to shift the export profile of countries in Africa towards export diversification and higher value-added goods and ser v ices.”In Europe, trade strategy has been in the spotlight, and earlier this month the EU launched its trade strategy for the coming years. “The challenges we face require a new strategy for EU trade policy. We need open, rules-based trade to help restore growth and job creation post-Covid-19,” said Valdis Dombrovskis, executive vice-president and commissioner for trade.Part of this new strategy includes reinforcing its alliances, such as the Transatlantic partnership, together with a stronger focus on neighbouring countries and Africa. In a statement the EU Commission emphasised the importance of trade policy in post-Covid times and said it would focus on building a “more resilient Europe in the world”. Noting that some 85% of global growth during the next decade would come outside of Europe, Dombrovskis said: “We will place a strong focus on Africa. This is an important strategic pivot for the EU. These countries are our nearest neighbours, with strong economic and cultural ties to Europe. Moreover, they have long-term strategic and economic growth prospects. We will therefore take every step to enhance our strategic trade and investment relationship, for our mutual benefit.
