Navigating Partnerships: Analysing EU-Africa Industrial Policy Relations

This research paper by the Africa Policy Research Institute analyses the industrial relations between Africa and the European Union (EU), arguing that despite the African Union's (AU) consistent focus on industrialisation, the EU has largely sidelined industrial policy in their partnerships, maintaining a relationship based on trade and aid that favours the extraction of raw materials.

• Since the 1970s, formal relations between the EU and Africa have prioritised trade and aid over industrial policy, leaving critical areas such as technology transfer, skills development, and the building of industrial capabilities largely unaddressed.
• The Lome Convention (1975) and the subsequent Cotonou Agreement (2000) failed to implement strategic measures for African industrialisation, operating instead on the theory that preferential market access to the EU would naturally stimulate industrial growth.
• African leadership has consistently pursued industrialisation as a core development strategy through various continental initiatives, including the 1980 Lagos Plan of Action, the 1996 Alliance for Industrialisation of Africa (AIA), and the 2007 Accelerated Industrial Development for Africa (AIDA).
• Trade between the two regions remains asymmetrical; between 2011 and 2022, African exports to the EU were predominantly primary goods (averaging 67%), while EU exports to Africa were predominantly manufactured goods (averaging 70%).
• While the EU is the largest source of foreign direct investment (FDI) in Africa—averaging over 45% between 2016 and 2022—the majority of these funds are directed toward extractive and energy sectors rather than manufacturing.
• The Africa-Europe Alliance for Sustainable Investment and Jobs (AEASIJ), launched in 2018, aims to create 10 million jobs in Africa over five years by prioritising 'value adding sectors', though the paper notes that current FDI trends suggest a continued focus on extractive activities.
• The paper identifies three reasons for the EU's lack of focus on African industrialisation: a preference for market-led rather than state-led industrial policy, the desire to maintain access to raw materials, and the EU's dominance in setting the partnership's strategic agenda.

APA

Chitonge, H. (2024). Navigating Partnerships: Analysing EU-Africa Industrial Policy Relations. Africa Policy Research Institute. https://afripoli.org/navigating-partnerships-analysing-eu-africa-industrial-policy-relations

Chicago

Chitonge, Horman. Navigating Partnerships: Analysing EU-Africa Industrial Policy Relations. Africa Policy Research Institute, 2024. https://afripoli.org/navigating-partnerships-analysing-eu-africa-industrial-policy-relations.

Wikipedia

{{cite report |last1=Chitonge |first1=Horman |title=Navigating Partnerships: Analysing EU-Africa Industrial Policy Relations |publisher=Africa Policy Research Institute |date=24 September 2024 |url=https://afripoli.org/navigating-partnerships-analysing-eu-africa-industrial-policy-relations |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chitonge2024navigating, author = {Chitonge, Horman}, title = {{Navigating Partnerships: Analysing EU-Africa Industrial Policy Relations}}, institution = {Africa Policy Research Institute}, year = {2024}, month = sep, url = {https://afripoli.org/navigating-partnerships-analysing-eu-africa-industrial-policy-relations}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }