Global Gateway Risks Diverting EU Aid Budget to Big Business
● More than 60 percent of the projects analysed benefit European companies like Siemens or Suez.
● Only 16 percent of all Global Gateway projects invest in key development sectors such as health and education.
The EU’s new global investment and development strategy, the Global Gateway, risks diverting the aid budget to big business, a new report by Counter Balance, Eurodad and Oxfam reveals.
“Who profits from the Global Gateway? The EU’s new strategy for development cooperation” report finds that over 60 percent of projects analysed benefit at least one European company.
The report dives into 40 Global Gateway projects and shows that 25 of them - 60 percent - benefit European companies such as Siemens, Moller Group or Suez. It also finds that at least seven companies that are part of the Global Gateway Business Advisory Group - the expert group established by the EU commission - signed contracts funded by Global Gateway money.
The Global Gateway’s main funding source is the EU’s aid budget (NDICI).
The EU’s rules state that the main objective of aid is the “reduction and, in the long term, the eradication of poverty”. Yet only 16 percent of all Global Gateway projects invest in key development sectors like health, education and research. This points to the risk that the EU’s aid budget is focusing more on boosting their own geopolitical and economic interests, rather than on tackling poverty and encouraging development.
"While the Global Gateway promises sustainable development, this report reveals that it is diverting critical EU aid funds to big businesses, rather than prioritizing the needs of vulnerable communities. The fact that more than 60% of the projects analysed benefit European corporations is deeply concerning. EU aid must remain focused on fighting poverty, supporting health, education, and sustainable development—not on bolstering corporate profits.
"We will be engaging with the Commission directly and sharing the findings with all Irish MEPs calling on them to urgently realign the Global Gateway's priorities and spending with its core mission of reducing inequality and eradicating poverty.
"This is a €300 billion fund to be invested between 2021 and 2027. The sums are huge, which makes the lack of transparency around this fund even more worrying. All European taxpayers need to know where their money is going. European public representatives need to take a real forensic look at the Global Gateway."
— Jim Clarken, Oxfam Ireland’s CEO
"The Global Gateway’s approach towards Latin America risks syphoning resources from the Global South to pay for the EU’s so-called green transition. This comes at the expense of our communities. Latin America is the most unequal region in the world. The EU must also listen to the voices fighting for a truly fair green transition.”
— Martha Sanchez Gutierrez, Programs Director at Oxfam Central America
The research also underscores the potential negative impacts of the Global Gateway on human rights and the planet. Three of the 13 water-intensive hydrogen projects analysed are planned in countries where water is scarce, like Namibia, Chile and South Africa. At the same time, fossil fuel companies such as Total Energies and Enel are members of the Business Advisory Group.
The report points to projects that threaten to worsen existing crises and conflicts. In Rwanda, the EU signed a hydropower project that risks forcing at least 4,500 people to leave their homes and impact their lands, crops and fruit trees. The EU also signed an agreement with Rwanda under the Global Gateway to extract raw materials despite accusations of fuelling the deadly conflict in the region.
In 25 of the 40 analysed projects (60%) at least one European company benefited from a Global Gateway project. These include large companies such as Siemens, A.P. Moller Group and Suez.
The Global Gateway rolled out 225 projects between 2023 and 2024. Most projects are in climate and energy (49%), followed by transport (22%) and the digital sector (13%). Education and health received the least attention (7% and 9%).
The Global Gateway’s Business Advisory Group is made up of 59 large, mainly European companies and business associations. The seven companies from this group that have benefited from Global Gateway projects are Moller Maersk, Enel, Meridiam, Orange, Nokia, Total Energies and Siemens.
One of the EU’s founding documents, the Treaty on the Functioning of the European Union, Article 208, states that the “Union development cooperation policy shall have as its primary objective the reduction and, in the long term, the eradication of poverty.”
Data from WRI’s Aqueduct Water Risk Atlas shows that 25 countries, including Namibia, Chile and South Africa, face extremely high water stress each year, regularly using up almost their entire available water supply.
The African Development Bank estimates that the Ruzizi III regional hydropower plan project in Rwanda and Congo will force the resettlement of 4,500 people and will affect properties comprising land, crops, fruit trees and other plants.
Congolese President, Félix Tshisekedi, denounced the EU-Rwanda deal and Congolese civil society group Lucha accused the EU of financing the war in eastern DRC.
The Civil Society and Local Authorities Advisory Platform fails to grant civil society sufficientaccess to information to influence the selection and design of projects. The platform also gives space to business organisations such as Internet Society which represents big tech giants like Nokia, which is also a member of the Business Advisory Group.
"While the Global Gateway promises sustainable development, this report reveals that it is diverting critical EU aid funds to big businesses, rather than prioritizing the needs of vulnerable communities. The fact that more than 60% of the projects analysed benefit European corporations is deeply concerning. EU aid must remain focused on fighting poverty, supporting health, education, and sustainable development—not on bolstering corporate profits.
