Financing inclusive digital transformation under the EU Global Gateway

Summary

The EU Global Gateway aims to support partner countries in developing sustainable digital infrastructure and regulatory frameworks to attract private sector investments, as well as provide digital economy packages to specific countries. However, to date, the EU has struggled to mobilise sizeable digital investments under the Global Gateway and demonstrate its strategic value.

In this paper, we argue that Team Europe – the EU, its member states and its development finance institutions – needs to develop deeper digital economy partnerships with a select group of partner countries and subregions, scaling up a bottom-up approach to increase finance and achieve strategic goals. Elements of this approach are gradually emerging, with the development of digital economy packages and informal D4D (digital for development) hubs in various countries. We lay out steps to further develop this approach.

Packages should be based on meaningful dialogue with partner countries and a comprehensive approach
to working with the local digital ecosystem and other Team Europe members on the ground. This approach requires building alliances at the EU and partner country levels, agile decision-making and an integrated implementation framework that addresses local needs. The development of country-led and regional digital investment platforms would allow for better coordinated public and private financing, better sharing of information and bigger investments. Team Europe should also explore synergies with multilateral development banks and like-minded investors and donors, including the G7’s Partnership for Global Infrastructure and Investment.

About the author:

Dr San Bilal is a senior executive and associate director of ECDPM’s sustainable economies and climate action cluster.

Chloe Teevan is the head of ECDPM’s digital economy and governance team.