In Europe, we have a long-term vision of the way forward: a free trade area between continents. Everything we do in trade is for the integration of our economies. THE EPAs are an example. We will lay the groundwork for an agreement between the continent and the continent if our African partners are prepared to do so. We have done a lot for economic integration in Africa and with it, but there is much more to be done. AfCFTA is of paramount importance in this regard and that is why we fully support it. EPAs with sub-Saharan Africa and other EU free trade agreements with North African countries are building blocks of the Continental Free Trade Area (AfCFTA) and the long-term prospect of a free trade agreement between continental countries. The EPAs already contain useful trade instruments for the construction of the AfCFTA. They provide a strong framework for regional trade and investment between THE EPA partners themselves and with the EU. They also strengthen the commercial capacity of EU partners.
But it`s worth it. Promoting intra-African trade would not only support sustainable development and growth on the continent, but also encourage cooperation and trade between our continents. This is why support for the African Continental Free Trade Agreement (AfCFTA) is a cornerstone of the EU`s trade strategy with Africa. This includes technical and financial support. It also means building on our current instruments of trade cooperation, such as EPAs and trade agreements with North African countries, and, in the case of Tunisia and Morocco, valuing these deep and comprehensive free trade agreements. It also means sharing the lessons of our own continent, which has enjoyed unprecedented successes in regional integration. Trade and investment between the EU and Africa have enormous potential for the future. With an average age of 21, Africa is the continent with the youngest population. At the same time, we are witnessing a rapid digitization. Africa already has 122 million active mobile financial services users – more than half of the global total. Growth on the continent will continue: the number of smartphone connections is expected to double from 315 million in 2015 to 636 million in 2022.
That`s twice as many users as in North America. Mobile traffic across Africa is expected to increase seven-fold over the same period. Africa`s future is a future of youth, growth and connectivity. Africa also has much to gain from trade with the EU. The EU is already Africa`s largest partner for both exports (36%) and imports (33%) which overshadow Africa`s other trading partners, including China (9% exports, 13% of imports), India (9% exports, 5% of imports) and the United States (7% exports, 5% imports). In addition to trade, the EU is the largest investor in Africa. Before Brexit, EU investment amounted to 261 billion euros, or 40% of foreign direct investment in Africa. Strengthening our relationship will also strengthen our trade and investment flows. One study showed that eu trade agreements implemented during the 1993-2013 period “reduced quality-adjusted prices by almost 7%.” [83] But Africa did not look at Brussels through the Council.
The EU has contributed to the development of a computerised platform for AU countries, on which they are prepared to reduce or eliminate tariffs under the free trade system. “A wise man is someone who listens to advice,” says a Kikuyu proverb.
