The EU and Africa have agreed to further green investments and regional infrastructure as the bloc’s representatives gathered in Angola’s capital Luanda for two days of the European Union-African Union summit.
The EU is on a path to achieve net neutrality by 2050, a binding goal that will require large-scale deployment of renewable energy such as solar and wind, and batteries for electric vehicles.
While the 27-member bloc is invested in domestic production, it sees Africa’s abundant sunlight and vast deposits of key raw materials such as lithium and cobalt as crucial to the energy transition.
“We commit to continue supporting all African countries to develop, industrialise, diversify exports, and integrate into regional markets,” the EU-AU joint statement published on Tuesday said.
Africa and Europe vowed to work towards advancing a just and clean energy transition to develop Africa’s renewable potential for rural electrification, sustainable industrialisation and clean cooking, according to the joint statement.
The two blocs will also join forces to accelerate the deployment of sustainable aviation fuels, the implementation of the Single African Air Transport Market and the development of sustainable transport systems.
“We now stand at the decisive crossroads, the strength of our renewed partnership will be proven by action. The legacy of this summit will be measured in the progress made by our youth,” said Mahamoud Ali Youssouf, chairperson of the African Union.
From Luanda to Johannesburg
Africa has been high on the international agenda.
The latest EU-AU gathering, which marked 20 years since the first summit in Cairo, followed the G20 meeting in Johannesburg over the weekend, during which the EU announced a trade deal with South Africa on clean projects and investments.
The deal, signed last Thursday, does not specify investment amounts but foresees opportunities in clean energy, critical raw materials, electricity transmission and infrastructure grids, among others.
“In an increasingly unstable geopolitical environment, Europe aims to secure its supply chain of critical raw materials and diversify our sources,” Commission Executive Vice President for Industrial Strategy Stéphane Séjourné said.
“In this regard, cooperation between like-minded and trusted partners is key, and South Africa is a natural ally,” Séjourné added.
European Commission President Ursula von der Leyen said the deal was a step forward to secure key critical materials while contributing to the development of South Africa’s economy.
European Investment Bank announces further loans
The EU’s climate bank, European Investment Bank (EIB), also announced on November 20 a €350 million loan to Transnet, South Africa’s state-owned transport and logistics company. The loan is meant to modernise port infrastructure and develop green hydrogen.
South African President Cyril Ramaphosa, von der Leyen, and EIB’s Director General Andrew McDowell signed the loan at a ceremony in South Africa’s capital.
However, Brussels-based watchdog Corporate Europe Observatory argued that donor countries provide mainly loans and guarantees to European corporations and banks.
In contrast, governments in producing countries use public funds to de-risk private investments, pushing debt burdens onto struggling public finances in the Global South.
“The EU cannot claim to lead a green and just transition while advancing energy colonialism abroad,” the observatory stated.
Under the EU’s climate target goals, the bloc is set to import 10 million tonnes of green hydrogen by 2030. While the African country is not yet a significant producer of green hydrogen, it has laid out a strategy to produce 500,000 tonnes per year by 2030 and up to 7 million tonnes by 2050.
In October, the EU pledged nearly €12 billion in clean energy investments in South Africa under its Global Gateway programme, intended to fund infrastructure and clean energy projects outside Europe.
The funds are meant to cover green hydrogen production and critical raw materials. It also foresees a budget for re-skilling and climate adaptation in Africa.
Also under the Global Gateway, the EU, alongside multiple investors, has unlocked nearly €2 billion in funding for the Lobito corridor, a transport infrastructure project linking the Atlantic Ocean port of Lobito in Angola, through the Democratic Republic of Congo (DRC) and Zambia.