By Hassan Dakhlallah
As global economic dynamics shift, Europe and Africa have an opportunity to move beyond aid towards a more balanced partnership built on shared competitiveness and long-term value creation.
For decades, the relationship between Europe and Africa has been built on a top-down logic, with one supporting the other’s development in exchange for access to its resources. That paradigm is now evolving.
Rapid population growth, the energy transition, the rise of the digital economy and the reconfiguration of global value chains are placing Africa in a new position. The continent is no longer merely adapting to global transformations; it is increasingly helping to shape them.
Why is Africa becoming indispensable to Europe’s future?
Africa is becoming a strategic partner not because it represents tomorrow’s market, but because it is already helping to address several of the major challenges Europe faces today.
A new economic geography is emerging. Companies are seeking to secure their supply chains, bring production closer to key markets and diversify their partners. In this new environment, Africa offers unique advantages. According to UNCTAD, the continent attracted nearly US$97 billion in foreign direct investment (FDI) in 2024, while the European Union accounts for almost 40% of the total stock of FDI in Africa.
Another major growth driver is the energy transition, which is further strengthening Africa’s strategic importance. The continent holds a significant share of the resources essential for batteries, power grids, hydrogen and low-carbon technologies. The Democratic Republic of the Congo alone accounts for around 70% of global cobalt production, in addition to Africa’s vast reserves of manganese, graphite, platinum and other critical minerals. The priority is therefore no longer simply to extract these resources, but to create more value locally through processing, transformation and industrial development.
Finally, Africa’s potential no longer lies solely beneath its soil. With a population expected to reach 2.5 billion by 2050, the continent will benefit from rapid urbanisation, the emergence of a growing middle class and, above all, the world’s largest pool of young talent and workforce. From a global perspective, Africa should no longer be viewed merely as a source of raw materials, but as one of the world’s most dynamic markets, an exceptional reservoir of skills and a genuine hub for innovation.
How can Africa capture more of the value it creates?
The real challenge is no longer to produce more, but to retain more value on the continent. For decades, Africa has primarily exported raw materials. Tomorrow, it must increasingly export processed goods, services, expertise and technological innovation.
Achieving this objective requires continued investment in infrastructure and using it as a lever for industrial upgrading. A new road does more than improve mobility; it enables businesses to produce, trade and export more efficiently. Likewise, a data centre is far more than a storage facility: it supports the growth of the digital economy while strengthening technological sovereignty.
Moving up the value chain also requires investment in people. Every major project should leave a lasting legacy by strengthening local businesses, developing new skills and increasing the number of suppliers capable of delivering both domestic and international projects.
Morocco illustrates this transformation particularly well. Its automotive industry has become a symbol of an ambitious industrial policy. As Africa’s leading automotive producer, the sector is now the country’s largest export industry, generating nearly €15 billion in exports, representing growth of 148% between 2023 and 2024. Morocco now aims to reach €19 billion in automotive exports within the next three years and produce two million vehicles annually by 2030.
What should a balanced Europe-Africa partnership look like?
The next phase of Europe–Africa relations cannot continue to rely on a model where one side invests and finances projects while the other simply benefits. In an increasingly interconnected and competitive global economy, both continents have a shared interest in strengthening their competitiveness and fostering new companies capable of creating value on both sides of the Mediterranean.
Every major economic power has relied on its companies to extend its influence internationally. Amazon, Apple, Siemens, TotalEnergies, Huawei and Alibaba are not only remarkable business success stories; they are also powerful instruments of economic influence and soft power. Africa must likewise foster more champions capable of investing, innovating, exporting and competing on the global stage, while becoming indispensable partners for European businesses.
The success of this new relationship should no longer be measured solely by the number of European companies operating in Africa or the volume of investment flowing into the continent. It should also be assessed by the number of international contracts won by African companies and the number of African groups expanding into Europe. The stronger, more competitive and internationally recognised African companies become, the more balanced, sustainable and value-creating Europe–Africa partnerships will be.
The debate is no longer about whether Africa can catch up with the rest of the world. It is about how the continent will help shape the rules of tomorrow’s global economy. To achieve this, Africa will need to build much more than infrastructure. It must develop businesses, invest in skills, nurture industrial champions and build value chains capable of competing globally. Only then will the next chapter of Europe–Africa relations move beyond dependency and evolve into a genuine partnership between two continents growing stronger together.
Hassan Dakhlallah
