More than 220 projects have been endorsed worldwide within the EU’s values-driven Global Gateway over the last two and a half years. The initiative positions the European Union in the global infrastructure race vis-à-vis other strategic competitors – namely China’s Belt and Road Initiative (BRI) – while supporting sustainable economic development in partner countries.
Global Gateway’s offer
The EU has pledged €300 billion until 2027 under Global Gateway investments to support smart, sustainable and secure connectivity with partner countries in the digital, energy, transport, health, education and research sectors across the globe. It will seek to mobilize €135 billion in private investments under the European Fund for Sustainable Development Plus on the basis of €40 billion in EU guarantees – a reasonable factor of 3.4 – €18 billion in grants under external assistance programs, and €145 billion in Member States’ financial and development finance institutions and programs such as Horizon Europe, InvestEU and Pre-Accession Assistance III. A European Export Credit Facility is also under analysis.
Global Gateway prioritizes strategic interests in digital and energy transitions given that the EU as a whole is a net importer of energy with 55% of all energy consumed in 2021 being imported. It is also exposed to new dependencies for critical raw materials as approximately 90% of the processing and refining of critical raw materials and rare earth elements is concentrated in China.
It will be up to the new College of Commissioners presided over by European Commission President Ursula von der Leyen to make this pledge a reality.
Africa gets the lion’s share
Due to its proximity, its considerable mining and renewable energy resources, and a rapid population growth which is expected to double by 2050, the EU has earmarked 50% of the total pledge, €150 billion, for the Africa-EU Global Gateway Investment Package announced in 2022.
A significant number of flagship projects have been considered such as the construction of the first undersea high-voltage electricity cable interconnection between Italy and Tunisia, the expansion and rehabilitation of the port of Banjul in Gambia, vaccine manufacturing in Rwanda, the construction of the Nachtigal Hydroelectric dam in Cameroon, and the development of the Lobito transport corridor from Angola’s port of Lobito into the mining areas of the Democratic Republic of Congo and Zambia.
LAC seen as able to reduce EU’s dependence on Russia, China
There is also a renewed interest in Latin America and the Caribbean (LAC). Partnerships with LAC have the potential to reduce the EU’s dependence on Russian gas and Chinese raw materials and could help the region to boost its digital and energy transition.
The Global Gateway Investment Agenda has earmarked €45 billion for the region which is 15% of the total pledge – with approximately 130 projects that will compete for funding including green hydrogen development, critical raw materials value chains (lithium and copper), expansion and modernization of electricity networks, vaccine manufacturing in Mexico, the implementation of the Team Europe Brazil Tropical Forests Initiative and Amazonia+ program to prevent deforestation, promote sustainable bioeconomy and traceability of supply chains, and the adaptation of Montevideo’s port infrastructure in Uruguay, among many others.
Partnership with Asia focused on energy and connectivity
The EU’s partnership with Central Asia is growing in importance, particularly the development of the Trans-Caspian corridor and access to critical raw materials. In the Middle East, cooperation with emerging donors (GCC) is centered on green transition and energy security. Energy is also relevant in its relations with South Asia, whereas the priorities with South-East Asia are centered on connectivity issues.
Chinese competition
Since its launch, experts have seen the Global Gateway as “an alternative” to China’s BRI, noting that it was intended to be “a higher-quality, more sustainable and more values-driven alternative”.
Launched in 2013, China’s BRI reached a peak in investments in 2018 amounting to US$100 billion but this has steadily slowed down since the pandemic. It was initially well received by developing countries due to its potential to fill the infrastructure-financing gap.
In LAC, 21 countries have joined BRI, with China particularly focused on securing critical raw materials like lithium — Argentina, Bolivia, and Chile alone hold 68% of the world’s reserves. In Africa, 53 countries have signed BRI agreements and have experienced varied outcomes with some managing loans effectively while others have faced challenges due to mounting debt.
Critics in the west caution that BRI projects may lead to significant environmental degradation, a high carbon footprint, and unsustainable debt burdens, with developing countries owing over US$300 billion to the Export-Import Bank of China.
The road ahead
Experts largely agree that the Global Gateway has the potential to underpin the EU’s vision of sustainable development. Its successful implementation will involve a complex collective effort comprising the coordination of EU and financial institutions, Member States, and the private sector, as well as increased political engagement with partner countries.
They note that the political and financial backing of Member States will be crucial to reach the announced goals and achieve the desired impact which will require alignment at the level of the European Council. The new College of Commissioners will also have to make efforts to mobilize private sector stakeholders and ensure their participation. The new Multiannual Financial Framework – to be proposed by mid-2025 – is expected to accelerate resource mobilization and the delivery of projects.
The fact that the approach is anchored on sound principles and standards may not be a burden, as some critics have argued, but a strong value proposition to emerging and developing countries.
The bloc has the financial resources to deliver. According to OECD data, the EU and its Member States are the leading Official Development Assistance (ODA) providers, having reached €95.9 billion in 2023, up from €71.6 billion in 2021. The annual investment gap to achieve the Sustainable Development Goals is in the range of US$2.5 to US$4 trillion, the UN estimates the world is on track to achieve only 15% of the targets.
Global Gateway has the potential to support partner countries to narrow the infrastructure financing gap.
Breakdown of external resource flows to developing countries, excluding
China, 2004–22
Source: Multilateral Investment Guarantee Agency (MIGA), World Bank, 2023.
