MEP says EU must be pragmatic while China has edge over EU billions

György Hölvényi, MEP for Hungary and member of the Patriots for Europe Group, standing rapporteur for education in the Committee on Development, reports exclusively for Brussels Signal on his recent official visit to Tanzania.

Tanzania is key to the EU’s €300 billion investment package for large-scale infrastructure projects, in particular the expansion of the Dar es Salaam port, set to surpass Mombasa as East Africa’s busiest port. But what Hölvényi underlined is that pressing competition with China requires action from the EU. Europe must become more pragmatic, making a better offer.

He writes: “Local governmental officials clearly explained to us that business deals with China are simple and fast, on the other hand with the EU there is complicated decision making and there are many conditions to be fulfilled. This gives China an edge”.

Here is Hölvényi’s report:

I have recently participated in a field visit to Tanzania undertaken by the Delegation of the European Parliament’s Committee on Development. Tanzania is a key hub linking the landlocked Central Africa with Europe – and also with China. The delegation met with Prime Minister Kassim Majaliwa, a long serving head of government in Tanzania, and other members of his government.

The aim of this mission was to assess EU investments and human development challenges in Tanzania. The country is key to the EU’s €300-billion Global Gateway investment package, which aims to boost European private sector involvement in Africa through large-scale infrastructure projects: particularly the expansion of the Dar es Salaam port.

While EU investments emphasize quality, they are often hampered by bureaucratic decision-making and ideological criteria. In contrast, China delivers high-volume investments quickly, without such constraints. African nations can choose between these approaches, and Europe has to acknowledge that they have the freedom to do so. To be a relevant player in this competition, the EU must move beyond outdated paternalism and adopt a more pragmatic strategy.

Africa’s Rapid Transformation

In Africa you really feel the fresh strength of the Earth. The continent is experiencing unprecedented demographic and economic shifts: its population, 830 million in 2000, is projected to reach 2.5 billion by 2050, with a median age of 19. Each year, 10–12 million young people enter the job market, offering immense growth potential. However, without significant investment in human capital, this potential may go unutilised. The challenge of quantity is serious: there is a need for 15 million teachers by 2030 in the Sub-Saharan region to keep up the existing level of education.

Only a few African governments have clear and long-term vision for their societies. UNESCO reports that nearly 100 million children are out of school in Sub-Saharan Africa—the only region in the world where this number is still rising. West and Central Africa struggle with violence-related barriers of access to education, while East Africa faces high dropout rates.

According to UNESCO the proportion of people who cannot read and write in the so-called developed countries is only three per cent, while in the developing world, including Africa, a third of the population is still unable to understand even simple texts. Only the Sub-Saharan region faces an approximate $70 billion annual funding gap for education. This is not only due to the pressing demographic challenges but also due to the lack of appropriate funding by some of the governments. There are however examples of countries recognising the importance to invest in human development, in particular education.

Tanzania: Booming Investments, Lagging Human Development

Tanzania’s investment capital has surged from $3.7 billion in 2021 to $7.7 billion in 2024. Yet human development investments are lagging behind. Despite ambitious plans for compulsory education and significant budget allocations, challenges remain. School infrastructure and curricula need further improvements, and – while tuition-free public schooling exists – uniform and material costs remain burdensome for many families.

Additionally, the country’s economic backbone—mining and agriculture—lacks domestic value addition, that is, little is added to the value of the product within the country.

In some sectors, such as energy, water and sanitation, there is already significant EU support. Companies from the EU have a combined stock estimated at approximately €700 million. On the other hand, Chinese presence is very dominant. For instance in the building industry it is difficult for local firms to compete. Unlike EU investments, which often require extensive negotiations and regulatory compliance, Chinese investments proceed swiftly with minimal criteria. This speed gives China an edge, particularly in sectors like transportation and manufacturing.

As local governmental officials clearly explained to us, business deals with China are simple and fast, on the other hand with the EU there is a complicated decision making and there are many conditions to be fulfilled. And there is no certainty in the outcome. Africa needs quantity, and while Europe offers quality, excessive bureaucracy and conditions make it less attractive.

As all over in Africa, including Tanzania, China is leading in large-scale infrastructure projects, including roads, railways, and industrial parks, primarily funded through state loans. The Julius Nyerere Hydropower Project, the largest energy project in Tanzania, with nearly $3 billion investment, planned to be finished in 2025, is developed by Chinese companies. Additionally, China has played a major role in modernizing Tanzania’s standard gauge railway, enhancing regional trade connectivity, making the travel time from the capital Dodoma to Dar es Salaam less than 4 hours – instead of a 10 hours bus ride. Clearly a significant difference.

China’s presence in Tanzania extends beyond economics. In 2023, Chinese foreign direct investment in Tanzania reached $60 million. Sixty Chinese firms attended the China-Tanzania investment forum under the Belt and Road Initiative. China is also expanding cultural and political influence through institutions like the Confucius Institute at the University of Dar es Salaam and a newly opened political academy. Chinese universities welcome Tanzanian students, strengthening long-term ties.

Unlike the EU institutions, China does not plan in five year periods but has a long term strategy. It is a relevant question if the European Commission is able to formulate a long term development and investment guideline that can streamline actions of Member States over more than a five-year long legislative cycle.

Recognising the need for investment in education

The race is not over yet. Europe can differentiate itself through investments in education and skills development. In 2022 the European Commission committed to dedicate at least 10 per cent of the EU’s development budget to education. This could be a game changer if efficiently implemented, in cooperation with partner countries and trustful local partners. Africa’s future depends on human capital investment—something that those focusing on short-term returns are unlikely to prioritize. By empowering Africa’s youth, Europe can foster economic ties, address root causes of migration and create a win-win scenario. With a smarter approach, Europe can finally make a better offer.

Partners who are willing to take the responsibility are needed for that. We should identify those African partners who recognise the need for investment in education, and are themselves taking efforts to increase funding for the sector. This political commitment from them is a necessity to make sure that EU money is not wasted, and the EU’s financial contributions are well-aligned with the broader goals of education reform and development, maximizing their effectiveness, and truly catalysing local efforts.