By Andrea Follin.

The European Union/African relationship is going through significant transformations, influenced by historical ties, shaped by the evolving geopolitical dynamics, and the pressing need for mutual economic growth. The 25th anniversary of the AU-EU partnership in 2025 will occur in a few weeks. Thus, it is paramount to understand the wide range of aspects structuring this relationship and which trajectory it will take within the following decades. To explore these topics, the ESCP International Politics Society organised a round table, featuring three experts in the field (Maxime Lefebvre, Pascal Maccioni and Jean Lamy, all former diplomats across Europe and Africa). The three speakers provided the attendees with insights on the political and economic framework of the relation, alongside the questions of investment in the continent.

As the panel started, Pascal Maccioni depicted two interconnected trends the EU has to address: 

• First, the growing willingness of African countries to assert their sovereignty
• Second, the constant reassessment of Western values.

These tendencies have some serious implications, as they challenge the three pillars of occidental values, that have traditionally underpinned EU-Africa relations: Parliamentary democracy, liberal capitalism and strict respect for human rights. Besides, Maxime Lefebvre pointed out that “Africa is not a monolith, but rather 50 different countries.” Thus, the EU’s approach towards Africa, should be more nuanced, as there is a clear diversity in regards to the national political landscapes across the continent.

Despite the political issues, the economic relations continue to be relatively positive.Nonetheless, some challenges need to be addressed. As a matter of fact, Africa is continuously disadvantaged by the terms of trade, with the continent mainly exporting raw materials, while importing manufactured goods and technology from the EU. Consequently, Africa has a limited influence on pricing, as its economies often struggle to add value to their exports, in contrast to the EU and its strong industry. Thus this imbalance is exacerbated.

To better understand FDI patterns in Africa, Pascal Maccioni outlined three categories of investment: “good investments” (from the EU generally), involving technology transfers, know-hows sharing along with the employment of local labor; “not so good investments” (from China usually), focusing on resource exploitation, and use of foreign employees; and “very good investments”, funding environmental & social development of the continent.

However, Africa has been experiencing a true decline in corporate investment since decolonization. As many new markets were opened to the world, in the 1980s, with ex-Soviet countries, but also with the emergence of “Asian tigers” in the 1990s, alongside the rise of new major markets, such as China or India, African countries have been overlooked by investors. According to our speakers, this could be explained by the fact that three key security aspects are not entirely guaranteed by African countries: security of goods and persons, security of private property, and security of contracts. Besides, Jean Lamy emphasized on how essential a middle class is to drive economic growth and attractiveness. A robust fiscal system is required, and it implies that there is equity in taxation, transparency in financial management, and efficiency in public service delivery.

Another major issue in the Africa EU relationships, is the proliferation of multilateral organizations, such as SADC, CEMAC, ECOWAS, etc… often yielding limited results due to inefficient structures. The latest initiative is the African Continental Free Trade Area (AfCFTA), as promising as it sounds, it is still in its early stages. Moreover, some structural issues are standing in its way. Notably, production across Africa is pretty similar, raising a barrier to complementary trade. Intra-african trade accounts for only 17% of the continent’s global trade volume. Although the EU remains a significant partner, other global powers are increasing their influence in Africa: China, with a trade volume of $300 billions –though its engagement is plateauing; Saudi Arabia, India and even Turkey emerge as partners, while South Africa and Morocco are competing as regional powers.

Looking ahead, the EU and Africa must continue to strengthen their long-term political and economic partnership to address global challenges and create a mutually beneficial relationship. This will require ongoing dialogue, strategic investments, and a commitment to shared prosperity in an increasingly multipolar world. By addressing the challenges and opportunities outlined, both regions can foster a more equitable and sustainable partnership that benefits all parties involved. The evolution of EU-Africa relations is more than just economic, it is also about building a foundation for enduring global cooperation and peace.

Edited by Maxime Pierre and Justine Peries.

References

[1] This article has been produced based on a conference organised by the ESCP International Politics Society.

[Cover Image] Picture from the panel, Chahed & Abel, 19/03/25, ESCP Paris.