Many European countries start agreeing with African activists on more trade than economic aid.

Thursday, 18 July 2013
There is some agreement that the emergence of China for African, though having its weak points, seems to have been the strongest liberating force Africans have wanted for decades. Now more Europeans seem to have joined the ban wagon of "trade not aid," to the Dark Continent.

Sweden had said vehemently clear, though divided along political lines, that it was going to reduce the amount of economic aid given to many of those African countries that are already showing improved economic growth. That is the essence of economic aid though- to move the countries out of poverty. Norway and Finland had also said they were reviewing their African economic aid policy given that the continent had started showing countries with substantial economic growth.

Increasing investment changing Africa for the better- trade not aid seen here working well in Ethiopia. Image from Swedish Television

In this light, many African activists had been clamouring for the western economies to stop giving economic aid to their countries for the money fuelled the runaway corruption observed today. They had called for better trading chances instead. Now it looks like other western countries are now joining the "less aid and more trade" discussion.

According to a report on Swedish television, Holland is now joining the Western countries' new approach to aid to African. They plan to cut economic aid to the continent by 20 percent by 2017. This will affect the wealthier Africans - those that are enjoying higher economic growth at this moment. Aid in the future might target the rural areas.
The image of an Africa that is made up of war, conflict, and famine are gradually fadding. The latest economic growth reports show how many African countries are changing economically driven more by their economic freedom with China rather than implanting the economic aid received from the west.

China has given the Africans a black cheque in exchange for their abundant minerals. African corrupt government have very limited opportunity to embezzle these because the Chinese themselves are on the ground to build the road, schools and hospitals which the western economic aid had failed to build for century.

This has made the western countries to change their views on economic aid though countries like the UK still favour huge economic aid at the dissatisfaction of the Africans and the British public.

In Sweden the governing Alliance coalition is divided in the new aid policy platform, where the Conservatives want to put more emphasis on trade, while the People's Party and the Christian Democrats are defending the traditional economic aid plan to the poorest.

One of the the drivers of more trade not aid is Holland represented here by Hans Blankenberg, Dutch Ambassador to Ethiopia. Img: Swedish Television

Several EU countries are now reconsidering their relationship to the increasingly rich African countries. Holland is one of the EU countries that have gone furthest. According to a government decision in April, the country's aid budget will be reduced by €1 billion by 2017, which represents 20 percent.

"We are a trading nation and we feel that we do not get an adequate share of Africa's emerging markets," says Hans Blankenberg, Dutch Ambassador to Ethiopia, one of the countries whose economy is growing fastest, in an interview with Swedish television.
"Our mission is to help Dutch companies help themselves, help them to invest. We would both allow self-interest and solidarity to control. We see that Africa will soon be on the same level as us and think it's time to change that old-fashioned relationship between donor and recipient to a more mature and equal relationship."

"When Dutch companies coming here and investing, it creates jobs, which lifts people out of poverty. Moreover, they pay business tax to Ethiopian government that contribute to the country's prosperity."

In this light, he points that Holland has invested heavily in an enterprise fund and highlights two recent examples: the Dutch brewing industry and the Dutch flower industry.
"Several Dutch breweries have invested in large breweries in Ethiopia. They have signed contracts with 20,000 small farmers to cultivate and supply raw materials to the brewers, such as hops." In addition, he continues "40 Dutch flower companies are here employing together 50,000 people in the lucrative Rose industry."

The roses are flown home to the European market.

Holland will not stop aid all together, will use its heavily invested enterprise fund, like Swedish Swedfund, which helps industry who wishes to establish themselves in the new markets. The Dutch ethos is that foreign direct investment in the long run is better than sustenance aid that may be more whimsical in nature.
by Scancomark.com Team

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