West Africa Rising: Visits by Cameron, Merkel speak to Africa's growing economy
鈥� West Africa Rising is a weekly look at business, investment, and development trends.
The leaders of two of the biggest economies in Europe have made stops in sub-Saharan Africa in the past week, with both urging a new focus on 鈥渢rade, not aid.鈥�
David Cameron, the British prime minister, and Angela Merkel, the German chancellor, paid separate visits to the West African powerhouse of Nigeria during fly-by tours of the continent. Their aim: to build trade ties with the continent鈥檚 biggest oil producer and most populous country.
鈥淚n the past, there were marches in the West to drop the debt. There were concerts to increase aid,鈥� Mr. Cameron wrote in South Africa鈥檚 Business Day magazine. 鈥淏ut they have never once had a march or a concert to call for what will in the long term save far more lives and do far more good 鈥� an African free trade area."
鈥淭he key to Africa's progress is not just aid,鈥� he added. 鈥淚t is time for some fresh thinking.鈥�
The UK will invest more than $250 million over the next four years to help free up trade on the continent, targeting ten key border crossings for improvements.
Cameron is in Nigeria today, the second and final day of his African tour, which began with a stop in South Africa on Monday. The prime minister cut his visit to just two days due to the phone hacking scandal back in Britain, which he鈥檒l return to this evening.
Tellingly, Britain鈥檚 minister of trade and industry, Stephen Green, as well as the country鈥檚 development minister, Andrew Mitchell, are accompanying Cameron on his African tour. In Nigeria, the prime minister is also joined by a private sector posse that includes the CEO of Barclays Bank, the communications director of England鈥檚 Premier League soccer conference, and executives from major firms like Vodafone and Waitrose, Britain鈥檚 Daily Telegraph reported.
鈥淭he business delegation that Cameron heads is an important statement of the coalition government's objective to have a more balanced relationship with Africa: trade and aid,鈥� wrote Alex Vines, the head of the Africa Program at Chatham House, the British development think tank. 鈥淎t long last Britain is breaking away from neo-colonial guilt and beginning to engage with African states as a normal international partner.鈥�
Meanwhile, Germany is focusing on building its energy partnerships in Africa, especially in oil-rich Nigeria. Ms. Merkel met with Nigerian President Goodluck Jonathan in Abuja, the country鈥檚 capital, on Thursday after making stops in Kenya and Angola.
鈥淚 have decided that we further intensify relations between Nigeria and Germany,鈥� Merkel said, according to a report from Bloomberg. 鈥淓nergy partnership will no doubt constitute a very important area for that intensified cooperation.鈥�
There鈥檚 plenty to attract European firms to the country: the economy of Nigeria, which has a population of more than 150 million, is set to grow by 8.5 percent this year. Trade between Germany and Nigeria is expected to reach $3.5 billion, up from $2.8 billion in 2009, with Germany buying Nigerian crude oil to fuel its cars and manufacturing and Nigeria importing German-made machinery and industrial goods to build its infrastructure.
