EU makes bold S’n African investment move

The European Union (EU)
has set aside a ¤4bn (R66bn)
fund to provide guarantees
to EU companies investing
in southern Africa. The
guarantees were against the
political and economic risks
that deterred investment
in the region, said Stefano
Manservisi, director-general
for development in the
EU Commission. He said
that the guarantees were
projected to leverage some
¤44.5bn (R735bn) worth of
investment in the region.
He further announced that
the EU had created a multiannual
budget of ¤8 billion
(R132bn) for development
in southern Africa which
the trade bloc is increasingly
focusing away from
traditional development
aid towards transforming
economies and generating
investment.
Manservisi said the
region was, on average,
the most advanced in
Africa largely due to South
Africa which was still
the “economic centre of
gravity” of the region. He
said having a strong core
economy like South Africa’s
could create “real regional
integration”.
CAPTION
Stefano Manservisi, director-general for development in the
EU Commission.