The European Union (EU) has pledged €1.1 billion as part of the Team Europe initiative to support the African Continental Free Trade Area (AfCFTA) and promote economic integration across the continent.
The announcement was made on Tuesday during a meeting in Addis Ababa between Jutta Urpilainen, the EU Commissioner for International Partnerships and Albert Muchanga, the African Union’s Commissioner for Economic Development, Trade, Industry and Mining.
In her statement, Urpilainen emphasised Africa’s potential for economic integration, noting that “the EU has supported this integration both financially and politically.”
The AfCFTA, officially launched by the African Union in 2018, seeks to progressively eliminate tariffs on intra-African trade, streamlining business across the continent.
However, participation remains limited with fewer than 10 countries fully engaged in the free trade area. Ethiopia ratified the AfCFTA in 2019, but has yet to fully implement it due to several challenges.
The Team Europe initiative involves collaboration among EU member states, including Denmark, Germany, Ireland, France, the Netherlands, Portugal, Finland and Sweden.
The initiative includes 70 projects across various sectors such as trade in goods, intellectual property rights, digital trade, competition, and investment, all aimed at furthering economic cooperation between the EU and Africa.
