Tag Archives: investment

EU supports Kenya reforms

European Commission announced two new programmes totalling €31 million to boost investment and create jobs in Kenya.

“We have a close and valued partnership with Kenya, driven by common objectives and aligned with the Africa-Europe Alliance for Sustainable Investment and Jobs and Kenya’s Big Four Agenda. I’m delighted to announce these new programmes today, which will deepen our economic partnership, boost Kenya’s economic potential, improve the investment climate, and create jobs. They are further evidence of our mutually beneficial cooperation to promote sustainable development to eradicate poverty” European Commissioner for International Partnerships Jutta Urpilainen (pictured) said in Nairobi.

The two programmes will support strategic dialogue and strengthen the EU-Kenya economic partnership:

  • €26 million will be directed at reforms of Kenya’s public finances to promote economic stability, improve service delivery and tackle poverty.
  • €5 million will target economic cooperation and national policy reforms. It will also provide technical support for implementing Kenya’s Vision 2030 and ‘Big 4′ agenda.

During her visit to Kenya, Commissioner Urpilainen held talks with, amongst others, President Uhuru Kenyatta and acting Treasury Minister Ukur Yatani to discuss future bilateral cooperation between Kenya and the EU. She also gave a keynote speech at the 9th Summit of the Heads of State and Government of Africa, the Caribbean and the Pacific (ACP) and met young leaders to exchange with them on political, economic and social issues and learn about their priorities for Kenya’s development. On Sunday, she visited the Kalobeyei refugee settlement, where the EU Emergency Trust Fund for Africa works with UN partners to ensure that refugees and the host community live together peacefully, have access to social services and develop economic ties to build sustainable livelihoods.

Tajani stands for Marshall Plan for Africa

Concluding his two and a half year term, the President of the European Parliament Antonio Tajani reiterates his proposal of the Marshal Plan for Africa. The European Union  should work with African partners to address the root causes of migration flows, Tajani insists.

The president repeatedly proposed a “true Marshall Plan” to become a part of the next EU budget in order to attract investment, infrastructure and to develop an industrial base while creating hope and prospects for the next generations.

Through his mandate president Tajani has promoted Marshall Plan for Africa from different fora, requesting to create EUR50 billion fund to invest massively in infrastructure, and develop industrial base.

Sub-Saharan Africa remains a region of stark political and socio-economic contradictions and multiple longstanding challenges. While a large number of countries de jure have adopted democratic principles of governance, the overwhelming majority of states de facto are governed by authoritarian and semi-authoritarian leaders. Autocratic regimes, civil strife, weak institutions and fragile political systems continue to undermine anti-corruption efforts.

Protesters block roads in Harare

Zimbabwe protesters blocked the roads and burned tires in a suburb of Harare , two days after President Emmerson Mnangagwa announced a considerable fuel price hike in an effort to stem a deepening economic crisis.

Cash shortages have plunged Zimbabwes economy into disarray, threatening widespread social unrest and undermining Mnangagwa’s efforts to win back foreign investors who massively left  under his predecessor Robert Mugabe.

Mnangagwa’s announcement of a 150% increase in fuel prices was received with shock in Zimbabwe where unemployment is over 80%. The government sets fuel prices via the Zimbabwe Energy Regulatory Agency.

May vows to invest in Africa

Theresa May has announced plans to boost the UK investment in Africa after leaving the European Union. The declaration of intention took place during her first trip to the continent as prime minister.

In a speech in Cape Town, May pledged four billion pounds in support for African economies, especially aiming on fighting unemployment among young people.

May also pledged a “fundamental shift” in aid spending to focus on long-term economic and security challenges rather than short-term poverty reduction.

The prime minister will also visit Nigeria and Kenya during the three-day travel though the continent.

On her way to South Africa, the prime minister dismissed warnings from the chancellor about possible economic damage of no-deal scenario could would cause.

Talking to journalists on board RAF Voyager on Tuesday, 28 August, May reiterated that she believed a no-deal Brexit was still better than a bad deal – adding no-deal “wouldn’t be the end of the world“.

Prime minister’s Common Wealth trip foreseeing meetings the presidents of all three countries – aims to deepen economic and trade ties with growing African economies ahead of Britain leaving the EU end of March 2019.

Ramaphosa sends mixed signals on land grabs

Contradictory information comes from South African leader Cyril Ramaphosa, who delivers different narratives to different players. Previously Ramaphosa said he intended to organise land summit in April, but the event did not take place. However during his visit  to London he reassured Queen Elizabeth there won’t be such expropriation without compensation.

During his first official visit to Britain as South Africa’s President, Cyril Ramaphosa met Queen Elizabeth and Prime Minister Theresa May. At present Ramaphosa is in London for the Commonwealth summit starting on Thursday, April 19.

The President is using his visit to Britain to launch his plan for attracting a trillion in foreign direct investments to South Africa.

 

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Africa to benefit from EU €44 billion of EU investment

The European Commission has defined concrete areas of investments for its External Investment Plan. The new plan will mobilise €44 billion of sustainable investment for Africa and the EU Neighbourhood countries (Eastern Partners – EaP).

 

The European Commission singles out five areas of investment, so-called “investment windows”, in which the first actions of the External Investment Plan (EIP) will be implemented. These investment areas are crucial for the sustainable development in countries in Africa and the EU Neighbourhood countries.

“The European External Investment Plan is the largest ever investment programme for Africa. Today, only four per cent of global foreign direct investment goes to Africa. With the European External Investment Plan, we can raise at least €44 billion in private investment by 2020, notably for the most fragile parts of the continent. I hope and I expect that others will join this effort. This is a strong signal of the strengthened partnership with Africa as we are heading towards the AU/EU Summit next week” – Federica Mogherini, EU top diplomat said.

“With today’s decision we are setting the agenda for sustainable investments. Unlocking the potential of sustainable energy, promoting digitalisation for development or supporting micro, small and medium sized enterprises will help us to create sustainable development and reduce poverty, for the benefit of all” – Commissioner for International Cooperation and Development Neven Mimica added.

“The investment windows represent real opportunity for many people and businesses in partner countries and in the European Union. Involving the private sector and securing the most conducive environment for it to flourish will contribute to sustainable growth, which is what we aim for” – Commissioner for European Neighbourhood Policy and Enlargement Negotiations Johannes Hahn commented. ‘The External Investment Plan will bring tangible results for citizens across our Neighbourhood and beyond, contribute to job creation and greater competitiveness, stronger economy, governance, connectivity, and a stronger society.”

The five investment windows include:

  • “Sustainable Energy and Connectivity” – to attract investments in renewable energy, energy efficiency and transport.
  • “Micro, Small and Medium Sized Enterprises (MSMEs) Financing” – to improve MSME’s access to finance. Such businesses are the main employers in Africa and the EU Neighbourhood, and offer important and more sustainable alternatives to the informal economy.
  • “Sustainable Agriculture, Rural Entrepreneurs and Agribusiness” – to provide better access to finance for smallholders, cooperatives and micro, small and medium sized enterprises agribusiness, allowing to address food security issues.
  • “Sustainable Cities” – to mobilise investments in sustainable urban development of municipal infrastructure, including urban mobility, water, sanitation, waste management, renewable energy services.
  • “Digital for Development” – to promote investments in innovative digital solutions for local needs, financial inclusion and decent job creation.