The private sector holds the largest potential for generating jobs and growth and it is therefore essential to boost responsible private investments — both domestic and foreign — in Africa. Africa’ s strong economic progress over the last two decades shows that there are substantial opportunities. At the same time, it is necessary to generate millions of new jobs, especially for young people entering the job market. Yet, in many African countries, instability and conflicts reduce the access to finance for much needed investment.
The EU is Africa’ s key partner supporting public-private sector dialogues, reforms that improve business environment and the technical capacities of African institutions to ensure strong public finance management and transparency.
Per year, the EU has committed to fund this area with € 300-350 million with the main goal of boosting private sector investment. Under the Alliance, the EU proposes to develop structured dialogues with the African and European public and private sector based on the Sustainable Business for Africa Platform (SB4A). Both targets are part of the EU External Investment Plan (EIP).
Increased EU support to business and investment climate reforms:
Already in 2018, the target to increase investment in business and investment climate reforms has been exceeded.
Public-private sector dialogues: the Sustainable business for Africa Platform
The EU is also facilitating structured public-private dialogue in 32 African countries, as part of the Sustainable Business for Africa platform of the EIP, and there are currently 21 EU Chambers of Commerce across the continent.
The Sustainable Business for Africa (SB4A) Platform helps to identify and prioritise necessary investment climate reforms and attract private investment in partner countries in order to create decent jobs, sustainable growth, and reduce poverty, with a focus on women and youth.