Europe is increasingly paying more attention to Africa. The latest news indicates that the European Union is actively promoting a €150 billion (approximately $162 billion) investment plan for Africa to help the continent reduce its dependency on China. China’s loan projects have burdened African countries with heavy debts.
According to Bloomberg’s report on Thursday (October 17th), Jutta Urpilainen, the European Commissioner for International Partnerships, stated that the EU has issued strong marketing messages for its “Global Gateway” initiative aimed at competing with China’s Belt and Road Initiative (BRI), which has provided over $120 billion in government support loans to African countries.
China’s funding has been accompanied by accusations of debt traps, exploitation, and corruption. In recent years, a debt crisis has swept across Africa, with three African countries experiencing debt defaults, all of which have accepted investments from China.
During an interview with Bloomberg in the Ethiopian capital of Addis Ababa, Urpilainen emphasized that the project is aimed at “supporting Africa’s self-reliance,” which contrasts sharply with China’s funding.
She stated that China’s activities in Africa not only heavily tie many African countries to China but also raise the debt levels of these nations. Most of these countries’ revenues are used to repay debts.
Last May, an Associated Press report highlighted that China’s loans have pushed over a dozen poor countries to the brink of economic collapse, including Pakistan, Kenya, Zambia, Angola, and others.
According to a study by Boston University, from 2000 to 2022, China has provided $170 billion in loans to Africa. To further expand its influence and control, Chinese President Xi Jinping announced in September that China will provide an additional 360 billion yuan in funding to Africa over the next three years.
Compared to China’s Belt and Road Initiative, which has been implemented for a decade, the EU’s Global Gateway initiative is still in its early stages.
Since the first EU-Africa summit in 2000, the EU has been committed to transforming its unilateral aid-based economic and trade relationship with Africa from “donor-recipient” to an “equal partnership.”
Earlier this month, the European Commission released a report entitled “Building sustainable international partnerships as a Team Europe,” summarizing the progress made in international partnership over the past five years.
The report emphasizes that over the past five years, in response to geopolitical and geo-economic circumstances and global challenges, the EU has adjusted its cooperation model.
“The EU has transitioned from a donor-recipient model to a reciprocal partnership, benefiting local populations and strengthening internal resilience.”
The core of EU’s international partnership — the Global Gateway initiative launched in 2021 — embodies this policy direction. Through investment partnerships, the EU aims to establish a foothold in the increasingly competitive international environment.
On the same day, Urpilainen also posted on the social media platform X, highlighting the change in the EU’s cooperation approach. She said: “Today, we released a report summarizing the progress of the EU Partnerships project over the past five years and the EU’s priorities. We have transitioned from a donor-recipient model to an equal partnership.”
The investment scope of the “Global Gateway” initiative includes five main areas: climate and energy, digitalization, transportation, health, education, and research. The initiative aims to promote the establishment of beneficial regulatory and business environments in partner countries, creating a fair competitive environment for local businesses.
The report notes that to mitigate investment risks, the initiative aims to raise €300 billion in public and private investments by 2027 through donations, concessional loans, guarantees, and other means.
From 2021 to 2023, the initiative has already raised €179 billion in investment funds. Of this, the EU has contributed €50 billion, while EU member states, the European Investment Bank, and the European Bank for Reconstruction and Development have contributed €129 billion.
Over the past five years, the Global Gateway initiative has been launched in Africa, Southeast Asia, Latin America, the Caribbean, and Central Asia, with a total of 225 flagship projects currently being implemented.
The EU currently has 27 member states, and multilateral participation is the fundamental framework of the EU’s “Global Gateway” initiative. The initiative relies on utilizing the resources of EU member states and multilateral organizations. The EU emphasizes that “at the global level, multilateral participation remains a crucial leverage for EU influence.”