Page 10 - AfrElec Week 48 2021

AfrElec BELT AND ROAD AfrElec

EU challenges China’s Belt and

Road with €300bn Global Gateway

AFRICA THE European Commission on December 1 a geopolitical tool would fail the expectation of
revealed details of the EU’s €300bn ($340bn) the international community and harm one’s
Global Gateway Strategy, a global investment own interests”.
plan hailed as a “true alternative” to China’s Belt Further explaining the concept of Global
and Road Initiative (BRI, or B&R). Gateway, Commission Vice-President Josep
China has funded railways, roads and ports Borrell, said: “Connections across key sectors
as BRI projects but it has come under fire from help to build shared communities of interest and
critics who say Beijing leaves some countries reinforce the resilience of our supply chains. A
weighed down with loans they cannot hope to stronger Europe in the world means a resolute
pay off. A centre-piece of Chinese foreign policy, engagement with our partners, firmly grounded
BRI is accused of spreading “debt-trap diplo- in our core principles.
macy”. Critics of Global Gateway say in many “With the Global Gateway Strategy we are
ways it amounts to a repackaging of cash. reaffirming our vision of boosting a network of
European Commission President Ursula von connections, which must be based on interna-
der Leyen has said countries need the develop- tionally accepted standards, rules and regula-
ment of a “trusted brand” like Global Gateway tions in order to provide a level-playing field.”
to design and deliver sustainable projects. The Global Gateway is to draw on the new finan-
EU will now explore how it can leverage billions cial tools in the EU multi-annual financial
of euros, drawn from member states, financial framework 2021-2027. The Neighbourhood,
institutions and the private sector, largely in the Development and International Coopera-
form of guarantees or loans, rather than grants, tion Instrument (NDICI)-Global Europe, the
to give heft to its scheme. Instrument for Pre-Accession Assistance (IPA)
Said von der Leyen: “COVID-19 has shown III, as well as Interreg, InvestEU and the EU
how interconnected the world we live in is. As research and innovation programme Horizon
part of our global recovery, we want to redesign Europe all allow the EU to leverage public and
how we connect the world to build forward bet- private investments in priority areas, including
ter. The European model is about investing in connectivity.
both hard and soft infrastructure, in sustainable In particular, the European Fund for Sustain-
investments in digital, climate and energy, trans- able Development+ (EFSD+), the financial arm
port, health, education and research, as well as of NDICI-Global Europe, will make available up
in an enabling environment guaranteeing a level to €135bn for guaranteed investments for infra-
playing field. structure projects between 2021 and 2027, up to
“We will support smart investments in qual- €18bn will be made available in grant funding
ity infrastructure, respecting the highest social from the EU budget and European financial
and environmental standards, in line with the and development finance institutions have up to
EU’s democratic values and international norms €145bn in planned investment volumes.
and standards. The Global Gateway Strategy is a The EU is also exploring the possibility of
template for how Europe can build more resilient establishing a European Export Credit Facility to
connections with the world.” complement the existing export credit arrange-
One EU official told the BBC that Africa ments at member state level and increase the
would be a major focus of the scheme. China has EU’s overall firepower in this area.
reached into Africa, Asia, the Indo-Pacific and The facility would help ensure a greater level
the EU with BRI. playing field for EU businesses in third country
The BBC also referred to a briefing given last markets, where they increasingly have to com-
month by China’s ambassador to the EU, Zhang pete with foreign competitors that receive large
Ming, in which he said Beijing would welcome support from their governments, and thus facili-
the EU’s Global Gateway if it was open and could tate their participation in infrastructure projects,
“help developing countries”. But he also warned the Commission said.™
“any attempt to turn infrastructure projects into

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