TIME FOR A NEW DEAL WITH AFRICa

The French Council of Investors in Africa (CIAN) recently organized a forum in Paris with the theme "Time for a new deal with Africa". This forum served as a timely call to action for African countries to negotiate better deals with external partners for their natural resources. The African continent is a significant supplier of energy to the European Union, with exports of oil, gas, and electricity to Europe totaling over $47 billion in 2019. Additionally, Africa has vast reserves of many raw materials and rare metals that are essential to the energy transition and are highly sought after around the world. For example, the Democratic Republic of Congo (DRC) is the world's leading producer of cobalt, a critical component in batteries for electric vehicles. In 2020, the DRC exported over $2.7 billion worth of cobalt, accounting for 67% of global production.

To fully realize the potential of their natural resources, African countries need to develop their industrial capacities, which require significant investments in infrastructure, energy, and agri-food sectors. The DRC's "Industrialisation Master Plan," which costs $58 billion, is an example of such an effort. This plan focuses on developing these key sectors in partnership with European partners. Similarly, Senegal's efforts to reform its business environment and attract foreign investment through the Invest in Senegal forum demonstrate the country's commitment to creating the best business conditions for companies and promoting economic growth.

At the forum, delegations from Niger, Chad, and the Congo came together, agreeing on the need for a paradigm shift that is essential to ensure local production and a better redistribution of wealth. The era of the New Deal presents an opportunity for African countries to open up to partnerships that are mutually beneficial, with fair and transparent terms. According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) flows to Africa declined by 18% in 2020, reaching $38 billion, the lowest level in a decade. African countries need to negotiate better deals with external partners to drive economic growth, promote sustainable development, and improve the lives of their citizens.

It is clear that African countries need to negotiate better deals with external partners for their natural resources to drive economic growth, promote sustainable development, and improve the lives of their citizens. The African continent holds significant potential for developing renewable energy resources, and it is crucial for African countries to develop their industrial capacities to fully realize this potential. Partnerships with external partners based on fair and transparent terms can help African countries achieve their goals and create a brighter future for their citizens.