European Union Launches 45 billion Euro Investment Agenda for Latin America and Caribbean
In an effort to expand its markets and counterbalance the growing influence of China in the region, the European Union (EU) has announced a major investment agenda for Latin America and the Caribbean. Under the Global Gateway initiative, European countries have committed to investing 45 billion euros (50.5 billion dollars) by 2027 to finance various development projects in the region.
The initiative was unveiled by the President of the European Commission, Ursula von der Leyen, during the EU and Community of Latin American and Caribbean States (Celac) summit held on Monday. The investment package includes more than 100 projects tailored to each country’s specific needs and priorities, offering opportunities for companies and organizations interested in investing in the region.
Some of the highlighted projects include financing the long-awaited Bogotá metro in Colombia, an initiative to enhance digital connectivity across 85% of Colombian territory by 2026, and the introduction of electric buses in Costa Rica. Additionally, there are plans to invest in projects that add value to key minerals like lithium, expand the telecommunications sector in the Brazilian Amazon, and boost vaccine production in Mexico.
The Global Gateway initiative, developed in collaboration with the Inter-American Development Bank (IDB) and CAF-Development Bank of Latin America and the Caribbean, is based on four pillars: a just energy transition, inclusive digital transformation, human development, and health and vaccines. Emphasizing the commitment to sustainability and social responsibility, President von der Leyen stated, “It is not just about how much we spend but how we invest. Global Gateway is accompanied by the highest environmental and social standards and with transparency. It’s the European way of doing business.”
The investment agenda has been welcomed by countries in Latin America and the Caribbean, as it presents an opportunity for economic growth and development. The focus on sustainable projects and adherence to strict standards aligns with regional priorities, including addressing climate change and promoting social equality.
As the EU expands its presence in the region, this investment initiative aims to strengthen ties between Europe and Latin America, fostering economic cooperation and paving the way for a mutually beneficial partnership.