France new economic approach with Africa

Under the presidency of French President, Emmanuel Macron, France has changed its approach when it comes to relations with Africa. It has broken up with the opaque France-Africa relations to a new approach, based on reciprocity and stronger connections with civil societies.

This was the talking point at the just-ended 6th edition of Ambition Africa held in Paris on November 19 and 20, 2024, a leading event that highlights the economic and commercial relations between France and Africa.

Organized by Business France under the aegis of the French Ministry of Economy, Finance, and Industry, as well as the French Ministry for Europe and Foreign Affairs, Ambition Africa 2024 aimed to highlight the potential of the African market and place it at the center of French SMEs and mid-sized companies’ growth strategies.

This unique event provided a prime opportunity to build strong ties with the international subsidiaries of French companies while fostering dialogue on the continent’s major economic challenges.

Over 2000 delegates from Africa and the French business community participated in the two-day event. The two -day programme included a plenary session attended by officials, round tables on specific topics and sectors, targeted B2B business meetings and networking cocktails. The event served as a key platform to enhance and accelerate the Franco-African trade relations.

Since its inception, Ambition Africa has established itself as the must-attend annual gathering for African and French economic actors and entrepreneurs. Ministers, ambassadors, business leaders, and delegations from across the African continent shared their visions and strengthened collaborations between France and Africa. In 2024, this event will continue

Several important themes were discussed during the event, including the African economy of tomorrow through the AfCFTA, best practices in business, agriculture and agri-food transformation, energy mix, circular economy, transport and logistics, Smart cities, Artificial Intelligence, sports, cultural and creative industries.

Mr. Patrick Wamkele Mene, Secretary General of the AfCFTA Secretariat, posited that the ambition to integrate Africa dates back to the founding of the Organization for African Unity (now the African Union) and was optimistic that it is on course to position the continent to become competitive among global players

But the challenge now, he noted, is to “transform such ambition into action,” He was however optimistic about the progress being made in which the continent is moving from ambition to action under the AfCFTA.

The AfCFTA is expected to integrate and consolidate Africa into a single US$2.7 trillion market by eliminating many of the barriers to trade present across the continent. It provides the platform for Africa to diversify its economy and achieve resilience to natural and manmade shocks, including climate change.

Mr Mene stated that the establishment of the AfCFTA does not only promote continental trade and economic integration in Africa but also support economic integration and trade facilitation between Africa and the rest of the world as the objective of the agreement is to increase both intra-African trade and trade with the rest of the world in made-in Africa goods and services.

Private sector

He said the continent’s private sector is recognized as an indispensable stakeholder in the African Continental Free Trade Agreement (AfCFTA), especially given its ability to catalyze sustainable economic development and job creation.

The private sector is even more ambitious than the continent’s governments in creating jobs, he assured the audience

Africa’s private sector accounts for 80 per cent of total production, two-thirds of investment, and three-quarters of credit, and employs 90 per cent of the working-age population, according to the UN Economic Commission for Africa (UNECA).

Although trends in intra-African trade point toward progress, trade within Africa remains very low in proportion to total global trade, highlighting the need for enhanced intra-African trade.

It is against this background that Mr Mane stressed the vital role the sector plays as a key driver of sustainable and inclusive economic growth, and urged the acceleration of efforts by governments to create an enabling and conducive environment for the private sector players to set up thriving businesses in the continent.

The success of the private sector landscape positively feeds into its role as a catalyst for the continent’s industrial development and broader transformation.

The success of the private sector landscape positively feeds into its role as a catalyst for the continent’s industrial development and broader transformation.

The UNECA estimates that by 2045 intra-African, trade in agri-food, industry, and services sectors will increase by nearly 35% compared to a situation without the AfCFTA.

France is home to a large African diaspora in Europe and 14 per cent of French emigrants live in Africa.  Recent data show that a growing number of Africans study in France, which remains the leading destination worldwide for students from sub-Saharan Africa. This is underpinned by strong university and scientific cooperation. Economic ties between France and Africa are also diverse, and there is a growing presence in Africa of French start-ups in many innovative fields, particularly in the digital and energy transitions.