(Ecofin Agency) - While the EU is Africa’s largest trading partner, with trade reaching nearly €367 billion in 2023, stronger economic and trade integration within Africa will create a vast unified market of 1.3 billion consumers for European businesses.

The European Union (EU) announced yesterday the disbursement of €1.1 billion (around $1.2 billion) to support the African Continental Free Trade Area (AfCFTA) and drive economic integration across the continent.

The commitment came after a meeting in Addis Ababa between Jutta Urpilainen, the EU Commissioner for International Partnerships, and Albert Muchanga, AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals.

The funds will come from the EU, along with contributions from Denmark, Germany, Ireland, France, the Netherlands, Portugal, Finland, and Sweden. These nations are pooling resources under the "Team Europe Initiative" “to implement more than 70 programs supporting African economic integration at the continental, regional and national levels”.

The EU also highlighted that trade between Africa and the Union hit nearly €367 billion ($398.6 billion) in 2023, up 27% compared to 2013. The EU remains Africa’s top trading partner and its largest export market, representing 33% of the continent’s trade in 2023.

During discussions with AU officials, Jutta Urpilainen announced another €20 million in funding to help address the ongoing mpox outbreak. The funds will support Africa CDC and the World Health Organization (WHO) efforts, particularly in the Democratic Republic of Congo (DRC). This additional support builds on the €24.8 million already provided by the EU and its member states to the WHO, Africa CDC, and impacted countries, along with a donation of over 566,000 mpox vaccine doses.