Europe courts Africa amid U.S. U.S. trade tensions

Europe can offer Africa a stable and reliable partnership when global trade faces growing uncertainty due to U.S. President Donald Trump’s escalating tariff war, according to an European Investment Bank official.

“In a world that is more and more turbulent, where big powers suddenly can turn your back on you, I think there is an awareness that Europe is there, offering serious, long-term partnerships on an equal footing basis, Thomas Ostros, a vice president at EIB, said.

With Chinese investment steadily declining, highlighted by a two-decade low in Africa’s energy sector in 2023, and many countries bracing for higher U.S. tariffs, Thomas Ostros said Europe can serve as a “beacon” of stability for its global partners.

“Tariffs hurt economies and will ultimately erode the wealth of many nations, especially the U.S.,” he said.

The Centre for Strategic and International Studies reports that 29 African countries are set to face a baseline 10% U.S. tariff, while 22 others could see rates climb as high as 50%, excluding critical minerals vital to the U.S. economy.

In response, the EIB, which invests up to €5 billion ($5.6 billion) annually in Africa, is exploring a wide range of new projects, according to Bloomberg.

These include funding Kenya’s much-anticipated rapid bus transit system and a €100 million loan to Family Bank Kenya to support small businesses, particularly in agriculture and trade.

Meanwhile, the European Union is deepening its footprint on the continent, recently launching the European Chamber of Commerce in Kenya as part of its broader economic engagement strategy.

In March, European Commission President Ursula von der Leyen pledged $5 billion (€4.7 billion) in aid and development support for South Africa.

Over the past decade, the European Investment Bank has allocated over $34 billion to support investment in green energy, water management, urban development, education, agriculture, telecommunications, healthcare and business initiatives across 40 African countries.

Between 2021 and 2027, the EU is set to support Africa with $160 billion in investments through the Africa-EU Global Gateway Investment Package.