ANALYSIS: Can EU investment revive Lake Chad Basin’s economy?

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With African guidance, Europe’s controversial Global Gateway plan can complement existing development projects.

The European Union will, on 6 February, finalise the list of priority projects under its Global Gateway initiative in 2023. The plan to mobilise investments that build sustainable links worldwide was unveiled in December 2021. Half of the €300 billion global target is earmarked for soft and hard infrastructure projects in Africa between 2021 and 2027.

Some also argue that Global Gateway funding targets are too low. Compared to its €300 billion global goal between 2021 and 2027, the Belt and Road Initiative would have committed an estimated $1 trillion between 2017 and 2027. And a significant portion of Global Gateway funds will likely not be ‘new money’ but simply the coordination of member states’ existing commitments through its Team Europe approach.

Since 2018, the Lake Chad Basin Commission has led recovery efforts through its Regional Strategy for Stabilization, Recovery and Resilience of the Boko Haram-affected Areas. The commission and others involved in rebuilding the region can boost peace and development by identifying and promoting Global Gateway investment projects.

Private sector-led investment projects are critical for sustainable development. When carefully managed, they are better suited for creating jobs, growing livelihoods and driving structural change. This means that Global Gateway projects in the Lake Chad Basin can complement existing development initiatives.

 

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