Brussels, 13/07/2006 (Agence Europe) - On Thursday the European Commission approved a proposal for a partnership on infrastructure between the European Union and Africa. The latter's poor infrastructure severely handicaps economic growth and human and social development on the continent. This initiative is based on objectives set out by the African Union and NEPAD (New Economic Partnership for African Development) for cross-border regional and national development in four priority areas: transport, energy, water, and information technology and telecommunication networks. For initial funding the Commission is proposing a total of €5.6 billion from the 10th EDF (2008 - 2013) - an increase in resources that have so far been allocated to African infrastructure by the EDF (€3.75 bn out of the 9th EDF for 2002-07).
The Partnership will also be supported by a new financial fund for infrastructure in Africa, implemented jointly with the European Investment Bank (EIB). This Fund is an innovative way for the Commission and interested member states to co-finance projects with the EIB and European and African financial and development institutions. In the short term, the Commission will allocate €60 million from the 9th EDF. The EIB will initially allocate €260 million in loan financing.
Presenting the partnership to the press, Commissioner for Development and Humanitarian Aid, Louis Michel, said on Thursday that he felt extremely strongly about the project, “it is a key element in the EU's strategy for Africa adopted by the European summit last December. It translates this strategy into concrete actions and will allow Africa to build the infrastructure that is so crucial for a real economic boost. Connecting Africa is essential for its economic growth. Transporting products from one place to another, from one country to another in Africa is a very costly and uncertain exercise given the state of the roads that exist. It is a major handicap for trade and development. Creating the conditions that are investment-friendly depends on networks appropriate to transport. Providing Africa with a vertebrae is a pre-condition for economic growth'.
Poverty reduction potential provided in the major trans-African connections can be seen in its full scale when we remember that 42% of Africa's population still has no access to drinking water, 60% do not have basic health facilities and only 8% of people in rural areas have electricity, given the lack of connections and central bodies, which mean that telecommunications for the most pat go via the North and that internet access is the equivalent to a month's salary and often remains out of reach.
Mr Michel announced that projects begin in 2007. “We are going to start with the hydro-electric project in Felou on the banks of the Senegal river, which provides electricity to Senegal, Mali and Mauritania”. He highlighted the importance of the regional dimension, which will be in all the projects for job creations, and helping economic growth but also for strengthening regional integration and developing intra-African trade, a pre-condition for setting up economic partnership agreements in the negotiations between the EU and African regions. Organisations of African regional integration, which Mr Michel met on Wednesday in Brussels will have an essential role to play in mobilising concerned countries through electric connections, road corridors, electric power lines etc to be put in place. Mr Michel warned that “At the end of 2006, beginning 2007, indicative regional African programmes will take over these projects, under the leadership of regional organisation that should kick-start their member countries to get involved in the work that affect them in the national indicative programmes. The work has progressed very well. The important moment will be at the end of 2006 when the regional and national programming and coordination between Member States is carried out. This partnership will not have a maximum return unless we succeed in producing a common analysis with partner countries, the Commission and Member States”.
Louis Michel believes that accomplishing these trans-African connections provides a unique opportunity to implement in the EU and inaugural exercise for common aid programming “to organise the division of labour and the implementation of the work” as hence provide coherency and increased efficiency - objectives pursued in the “Brussels Consensus” (new framework for European development 2005-10). He does not doubt that by rapidly setting up “European consortia” that bring together, around the same infrastructure project, the Commission will be able to focus on its area of excellence and competency, as well as certain Member States. The €5.6 bn for EDF is less than the 7 bn in resources thought necessary by the EIB for the seven years of programming but “we can count on a contribution by Member States to implant projects by inserting the major connections sought by the Africans onto the maps”, underlined the Commissioner who also hopes that there will be voluntary contribution from African countries had have natural resources.
Commenting on the official creation “in the next few days” of a trust fund, Mr Michel pointed out that this would be a further instrument for EU Member States to mobilise the funding to meet their commitment to increase the level of public aid to development. He said that “this fund will allow greater flexibility in financial set-ups by combining grants and loans, and public and private funding”. He stressed that “several Member States are interested”, without trying to hide the fact that, up until now, none has committed itself to becoming involved in the fund. “I don't think that Member States will commit themselves very quickly. That is why we want to complete the Felou project rapidly, to show that it works”.