Examining how tariffs impact Africa’s investment relations with the world

European countries are steadily advancing in working out economic partnerships in the face of the ongoing trade tariff wars between the United States and China. The European Union (EU) has expressed deep regret over the universal tariff imposed by the US President on the 2nd of April. Benoit Denis, Senior Investment Officer at the European Investment Bank, shared that the tariff would have a significant impact on the global economy, leading to rising prices for consumers, increased costs for businesses, loss of jobs, and disruption in supply chains. These consequences are expected to be especially disastrous for vulnerable economies, such as those in Africa. Denis emphasized the importance of Europe's presence in the geopolitical context to enhance resilience globally, particularly in partner countries like those in Africa. The partnership between the EU and Africa has historically been crucial and longstanding. The proximity of the two regions, intertwined history, and closely related economies have underscored the significance of continued investment in Africa for mutual benefit and equality. In light of the current geopolitical landscape, Europe remains committed to supporting the development of the African continent. The European Investment Bank has ramped up its activities in Africa, with recent investments totaling significant amounts, such as the $100 million funding for AXION. This substantial investment is aimed at advancing telecommunications accessibility and infrastructure development across the continent. Denis highlighted the importance of fostering a digital economy in Africa to bolster stability and resilience. The bank has adopted an inclusive approach to financing the sector, encompassing infrastructure and services. The investment in AXION Telecom's 4G and 5G networks in Madagascar and Tanzania is geared towards enhancing connectivity and providing essential services like education, healthcare, and facilitating trade. AXION Telecom's rebranding to YAS following acquisitions positions it as a reliable partner in driving economic and social development through telecom network expansion. The European Investment Bank's strategic interest in the digital sector aligns with the growing investments in the telecom industry by various stakeholders. By offering long-term financing to clients like AXION Telecom, the bank enables them to pursue ambitious investment plans and expand their operations sustainably. The focus on supporting African markets, even in less developed economies like Madagascar, signifies the bank's commitment to advancing connectivity and technological progress in the region. Despite escalating trade tensions globally, the European Investment Bank maintains its investment view for Africa as a key market for growth and development. Africa remains a primary market for the bank outside the EU, and its strategy revolves around fostering economic stability and resilience on the continent. The bank will continue to support sectors like telecom, emphasizing both infrastructure development and application services that enhance consumer value. Sustainable development, particularly in climate resilience, is a core focus area for the bank as it seeks to solidify its position as a long-term partner for Africa's growth and prosperity.