Investment in Africa: EU seeks new alliance, free-trade agreement with Africa

World
Europe

02:46

Time now for the day's news from Africa. Peninah Karibe is in our Nairobi studio. Peninah, it's been a fruitful few weeks for the continent, hasn't it?

Well, Jeff, Africa seems to be attracting the right attention going by developments over the past couple of weeks. China has pledged 60 billion dollars to the continent, British Prime Minister Theresa May was here seeking deals and the European Union is considering a free-trade agreement with African nations. CGTN's Deji Badmus has more.

With a population of over 1.2 billion people and still growing and an average age of 19.4 years, Africa is one massive market for anyone to ignore. Some analysts see the continent as the next emerging market with growth forecast to pick up to slightly over three percent in 2018. The rush for deals is no surprise.

Just last month, British Prime Minister Theresa May was in the continent seeking to bolster trade ties. The EU has now followed suit seeking to improve trade ties with Africa. China has announced it will be investing 60 billion dollars in the continent over the next three years to bring its total investment in the continent in a six-year period to 120 billion dollars.

Economist Gabriel Idahosa says it's a good time for Africa but that its political leaders must be smart to negotiate the best deal for the continent.

GABRIEL IDAHOSA, ECONOMIST "Various African countries have slightly different interest. But they will need to sit together and agree on certain basic African positions, which they can now put on the table. Those positions will include developing intra-African trade."

It's not yet clear what kind of arrangement the EU would be proposing but the commission's President made it clear it should be a continent-to-continent free trade agreement.

GABRIEL IDAHOSA, ECONOMIST "If some countries are gaining much more acceptance and occupy much more space in the African economy, China and India for example, it is because they are committing a lot more resources, resources that will derive long-term goal of African countries."

As the opportunities open up for Africa, analysts say the continent should be open to all the offers and not limit itself to any exclusive option. What they say is important is to look at the best deal that offers the continent the opportunity to get itself out of poverty. And if all the deals have the same potential, then grab everything. DB, CGTN, L, N.