As global trade becomes increasingly unpredictable, Europe is stepping up efforts to deepen its economic ties with Africa, presenting itself as a stable and reliable partner at a time when the United States tightens tariffs and Chinese investment declines.
“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,” said Thomas Ostros, Vice President of the European Investment Bank (EIB).
His comments come as U.S. President Donald Trump’s aggressive tariff policy continues to send shockwaves through global markets, pushing developing economies to reassess their alliances.
The Centre for Strategic and International Studies has reported that 29 African countries are now facing a baseline 10% tariff on U.S. imports, while 22 others could see rates soar up to 50%.
Though critical minerals deemed vital to U.S. interests are exempted, the sweeping trade measures threaten to undercut African exporters and destabilize economic planning across the continent.
“Tariffs hurt economies and will ultimately erode the wealth of many nations, especially the U.S.,” Ostros warned, underscoring the urgency of finding new, dependable trade partners.
With Chinese investment in Africa’s energy sector hitting a 20-year low in 2023, Europe sees a strategic opening.
The EIB currently invests up to €5 billion ($5.6 billion) annually in Africa and is actively exploring new projects.
Among them are funding Kenya’s long-anticipated rapid bus transit system and issuing a €100 million loan to Family Bank Kenya to bolster small and medium-sized enterprises, particularly those in agriculture and trade.
Beyond financing, the European Union has expanded its institutional presence, recently launching the European Chamber of Commerce in Kenya as part of its broader economic engagement strategy on the continent.
In March, European Commission President Ursula von der Leyen pledged €4.7 billion ($5 billion) in aid and development support for South Africa, further reinforcing Europe’s commitment to long-term collaboration.
Over the past decade, the EIB has deployed more than $34 billion across 40 African nations, backing initiatives in green energy, urban development, water systems, education, agriculture, telecommunications, healthcare, and small business development.
As global power dynamics shift and trade relationships are tested, Europe is positioning itself not just as an alternative, but as a committed ally ready to invest in Africa’s long-term future.
