The European Union (EU) started of as a small trading block and evolved into one big region approaching 500 million people. It is planned around the core of Europe that is concentrated between London, Paris, Milan, Munich and Hamburg and builds on its global economic competitiveness. Most African states that were colonised in the nineteenth century became independent between 1957 and 1964. However they are still dependent for capital, imports and finance on the old colonial powers. In most the standard of living as well as its share in world economy decreased in the last forty years. The Organisation for African Unity (OAU) was created in 1963 but largely focussed on political matters. To improve the economic sit uation and to implement a vision of Africa’s renewal, the New Partnership for Africa’s Development (NEPAD) was formed with the African Union (AU) to govern this process. On the surface the European Union and NEPAD might look alike in terms of their objectives and principles. However significant differences in handling the effects of globalisation, fragmentation, governance as well as planning constraints will force Africa to develop its own model for development