The Youth Cafés Report Of The 7th Eu-Africa Business Forum 2022.

The 7th EU-Africa Business Forum (EABF22) took place online from 14th to 18th February 2022 and in a hybrid format on the 16th and 17th of  February 2022, at The Square, in Brussels (Belgium). The Forum was jointly promoted and sponsored by the European Commission and the African Union Commission and organized in partnership with the Pan-African business organizations Africa Business Council, Pan African Chamber of Commerce and Industry, AfroChampions, Business Africa, and the PanEuropean business organizations Business Europe, European Business Council for Africa and the Mediterranean, Eurochambres and European Entrepreneurs CEA-PME.

It brought together representatives from the African and European business communities and high-level representatives from political institutions and other stakeholders to review all strategic aspects of the EU-Africa relationship and make concrete proposals to the African and European heads of state and government for a new model of partnership.

The overall theme for the 7th EU-Africa Business Forum 2022 was “Building stronger value chains for sustainable growth and decent jobs.” Indeed, developing strong value chains between Europe and Africa is a critical issue and the core of ongoing discussions. This is important for business and supporting Africa’s sustainable development and improving its citizens’ living conditions.

As part of the 7th EU-Africa Business Forum (EABF), business organizations from Africa and the European Union prepared a joint Declaration that highlights the need for a partnership of equals between the European Union and the African Union, which is key in the context of the recovery from the COVID-19 pandemic, which emphasizes the need for sustainable investment, opening up trade, and nurturing a stronger private sector. European Union/African Union support, specifically to promote all cutting-edge intercontinental business ties with a multi-stakeholder approach, is of fundamental importance for this partnership.

Secondly, the Declaration highlights that more innovative financing mechanisms for the private sector are essential. Measures should aim to mitigate risks, facilitate access to finance, and promote sustainable private sector investment, which is key to the growth of Africa. This requires the astute use of both existing and new instruments, such as financing instruments geared to the needs of companies, empowering the private sector, including Small Medium Enterprises, women, and youth, improved trade agreements, and close cooperation between the African-European Union.

A third highlight is that promoting a healthy and stable business environment favorable to private sector investment is crucial, therefore, African Union/European Union Member States must invest in education and seek a closer involvement of the private sector so that the education systems and school curriculum meet current and future business and scientific needs. This would encompass a vigorous pursuit of work-based professional training and bi-regional partnerships.

As a youth organization, The Youth Café works to provide young people with employability skills, communication skills, and digital media literacy skills through workshop training and innovation competitions in the area of education, skills, and technology. Access to quality education and the opportunity to develop skills and competencies is vital in preparing youth for the future. An investment in their human capital is an investment in the socio-economic future of our societies. The Youth Café aspires to provide high-quality education and training systems that are efficient and that facilitate young people’s access and integration.

The fourth highlight entailed promoting the integration of European Union and African value chains by addressing non-tariff barriers and modernizing the frameworks governing EU-African trade, taking into account the Pan-African Investment Code and the Africa Continental Free Trade Area (AfCFTA), with the ultimate goal of transitioning to a continent-to-continent free trade agreement. In particular, the African and European private sectors have a shared interest in the successful and effective implementation of the Africa Continental Free Trade Area (AfCFTA) to increase intra-African trade concerning economic growth and job opportunities it is expected to create.

 A fifth takeaway is the reinforcement of the public-private dialogue and enhancing the long-term dialogue structures between African and European business organizations through a permanent platform that will transform the EABF from a one-off event to a continuing hub of dialogue that will identify problems, find solutions and create strong, effective and long-lasting business partnerships.

Lastly, strengthening bilateral relations between business organizations to continue business-to-business and business-to-government cooperation and dialogue most efficiently and constructively.

The EABF22 was the culmination of months of preparatory discussions between business representatives and public sector stakeholders from the European Union and Africa that prepared the event, assisted by 12 thematic working groups. The members of these working groups drafted valuable proposals for their respective areas, reflecting the discussions in the working groups, which are annexed to this business declaration.

The Forum, which reflected on the urgency of needing to respond to the ongoing pandemic and on pushing back against the rising tide of poverty, embodied a productive and wide-ranging exchange of views on issues of climate change, trade and investment, women and youth, the environment and sustainable development, good governance based on partnership, shared responsibility and mutual benefit.

At The Youth Café, we are a leading example of African Youth Governance Architecture, a platform where young people and youth-led organizations interact with the world. A transparent, democratic, and accountable environment is what The Youth Café is all about. Remittances, an essential source of income for millions of people living in Africa, are a key factor in reducing poverty in developing countries. We are working to increase the generation of domestic resources and eradicate high levels of poverty by advocating for changes in the legal and regulatory frameworks.

European Commissioner for International Partnerships Jutta Urpilainen said: “I am pleased to see the EU-Africa Business Forum yield tangible trade and investment results. These commitments will benefit businesses and people on both continents. We will achieve our common goal of a strong, inclusive, green, and digital recovery by joining forces with our partner organizations and the private sector. Supporting young entrepreneurs is particularly close to my heart. Youth’s energy and creativity are crucial to Africa’s booming economy.

European and African businesses should do their best to - increase the share of value addition taking place in Africa; - support the implementation of the African Continental Free Trade Area by supplying the market with high-quality goods and thereby accelerating Africa's Industrialization; - promote and facilitate the conclusion of joint ventures and partnerships between EU and African businesses; - advance the social and environmental dimensions of their business activities and promote socially responsible conducts.

In addition to the financial commitments, EABF22 led to agreements bolstering structural relations between the public and private sectors: the African Business Council and the African Association of Automobile Manufacturers signed Memoranda of Understandings with important counterparts in Europe and Africa.

Werner Hoyer, President of the European Investment Bank, highlighted: “Ensuring that African start-ups, entrepreneurs, smallholders, and businesses can harness new opportunities, create jobs and expand is essential for Africa, Europe, and the world. Today, as European Investment Bank Global, we are unveiling innovative high-impact cooperation that will back businesses across the continent, strengthening economic resilience to the impact of COVID-19 and building a better future. The EU-Africa Business Forum ensures that the impact of scaling up sustainable private sector investment across Africa is recognized ahead of the EU-African Union summit.”

Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said: “The EBRD is very active in the southern and eastern Mediterranean region, especially in our North African countries of operations: Egypt, Morocco, and Tunisia.  We operate there with a great focus on green transition, digitalization, and economic inclusion through investments, policy reform, and advice. We are delighted to have signed new commitments in all these areas and taken concrete steps to develop dynamic and resilient economies in cooperation with our European partners.”

Amany Asfour, President of the African Business Council, said: “I would like to thank the European Union Commission and African Union Commission for organizing the European-Africa Business Forum, which emphasizes the role of the private sector as a partner in development. Africa Business Council is the African private sector's voice established in line with the African Union Decision Summit to boost our Intra Africa Trade has its founding vision of a Competitive Borderless Innovative Africa for trade, industrialization, and investment. 

This partnership of equals in the private sector from both continents is crucial for realizing the Africa we want based on creating jobs, transfer of technology, value addition for raw materials, and industrialization. An enabling business environment for the investment of our partners from Europe and with the implementation of the Africa Continental Free Trade Area, investment in infrastructure, energy, and industrialization will impact the daily lives of our people. Africa Business Council thanks the organizers and the great team who contributed or this fantastic successful event.”     

Prof. Benedict Oramah, President of Afreximbank, commented: “Our relationship with the German Development  Bank (KFW) and the Federal Ministry for Economic Cooperation and Development (BMZ) has been extremely productive over the years. We are delighted to have expanded and deepened it with this loan. Afreximbank has worked tirelessly to support member states as they work to collectively attain the African Union’s goal of vaccinating at least 70% of the continent’s population by the end of 2022. Today’s announcement validates the Bank’s Covid-19 response strategy and its extension to develop pharmaceutical capacity in Africa.”

Bruno Wenn, Chairman at EDFI, said: “Financing alone is not the solution for supporting enterprises as the engine of growth and decent jobs in Africa. Enterprises need a business environment that allows them to grow and generate jobs. Impact and efficiency will be greater if the development agenda is much more designed toward the private sector. This calls for all actors' concerted effort, especially multilateral development banks and governments. We, at EDFI, are committed to deepening the collaboration with other DFIs, development banks, and agencies across Africa and Europe. The EU-Africa Business Forum constitutes an important step in this direction.”

Christiane Laibach, Member of the Executive Board at KfW Group, commented: “The African continent has been hard hit by the consequences of the coronavirus pandemic. This is why it is important to reduce the impact on the health of the population and the economy. The development and strengthening of local production capacities for vaccines and medical products aim to promote the self-reliance of African countries in their response to the pandemic and reduce dependence on non-African products and international supply chains.”

In conclusion, financial institutions, business organizations, and other actors signed or announced more than 20 agreements to support health, agriculture, clean energy, youth, entrepreneurship, digital, automotive, etc. Areas of specific concern to some of the signatories are: The African Union and European Union and their Member States should strive to:  improve both continents’ Business climate and conducive environment in order to enhance trade and investment flows in both directions, actively support the value addition and industrialization in Africa, encourage and support Public-Private Partners, joint ventures among European Union and African businesses, in particular, Small and Medium-sized Enterprises (SMEs) from both continents, support key initiatives to recover from the COVID-19 pandemic, including the establishment of the African Medicines Agency, design a Global fund/Trust fund (opened to contribution from the EU and AU Financial Institutions, African Diaspora as well other partners), to finance, investment, and overall development in Africa through grants and low-interest loans, as well as joint venture and partnerships between European Union and African businesses in all the thematic areas covered in the Business Declaration. 

More specifically, the trust fund should cater for among others:  infrastructure initiatives to build or upgrade infrastructure within Africa, including cross-border digital infrastructure, as well as link Europe and Africa, Research & Development and Africa’s productive capacity development to take part in all the components of the value chains, Public-Private Partnership in cross-border digital infrastructure and services including smart finance and interoperable payment system, dedicated Micro Small Medium Enterprises and Small Medium Enterprises financing and development schemes, including grants, investment collaterals, as well as low interest credits, in particular for young entrepreneurs and women in business, development of textile regional hubs across Africa, strengthening of business development centers, business incubators, research and innovation centers as well as technology hub, youth innovation, entrepreneurship, and mentorship programmes, projects on sustainable value addition in mineral, energy and agricultural resources, joint ventures and partnerships between African and European businesses and  support the timely implementation of the African Continental Free Trade Area. 

The Youth Café works with young men and women around Africa as a trailblazer in advancing youth-led approaches toward achieving sustainable development, social equity, innovative solutions, community resilience, and transformative change.

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