CGD’s Mikaela Gavas joins Gyude to discuss barriers to private investment in health and infrastructure projects and how a new initiative—an Accelerator Hub—could help local businesses and institutions in Africa develop financially viable proposals and connect them with investors.
CGD Policy Blogs
The Biden Administration May Join the European Union in a Ban on Financing Fossil Fuels with Development Dollars. Poor Countries Must Be Exempt.
Since taking office, the Biden Administration has taken several steps to address the climate crisis and plans to do more on the international stage. This trend will be in line with an earlier move by the European Union to “stop funding oil, gas, and coal projects at the end of 2021, cutting €2bn (£1.7bn) of yearly investments.” But a blanket ban on fossil fuels is likely to stifle economic growth and make poor populations in Africa even more vulnerable to the impacts of climate change.
The current state of migration cooperation between Africa and Europe is far from this ideal. True partnerships should focus on promoting economic opportunity in countries of origin and expanding legal pathways, both from Africa to Europe and within the continent. Currently, African governments are left responding to Europe’s short-term thinking without collaboration towards long-term mutual gain—a scenario that undermines the potential for joint initiatives that can benefit both Africa and the EU.
With both the United States and China emerging as spoilers in the international system, Africa’s efforts to increase its economic power will only succeed if met with a more expansive European foreign policy, backed by an increase in resources to match such ambitions.