Navigation and service

G20 Com­pact with Africa

G20 initiative to promote private investment and investment in infrastructure

Logo Compact with Africa
We see the Compat with Africa as a long-term, demand driven process. The African countries will determine what they want to do to improve conditions for private investment, with whom they want to cooperate, and in what form.

Dr Wolfgang Schäuble, Federal Minister of Finance

Resolution on the Compact with Africa adopted by G20 finance ministers and central bank governors in Baden-Baden

The G20 acknowledges its special responsibility to join forces in tackling the challenges facing the poorest countries, especially in Africa. The Compact with Africa initiative aims to boost private investment and investment in infrastructure in Africa. Such investment is an essential precondition for strong, balanced and sustainable growth. However, spurring higher investment levels - particularly from foreign investors - requires improved conditions for investment.

To this end, the World Bank, the International Monetary Fund and the African Development Bank have produced a joint report (“The G20 Compact with Africa: A Joint AfDB, IMF, and WBG Report”) that was warmly received by the G20 finance ministers and central bank governors at their recent meeting in Baden-Baden. This report proposes a catalogue of instruments and measures designed to improve macroeconomic, business and financing frameworks as a way to boost investment.

Investment compacts with interested African countries

To improve these frameworks in a tailor-made way, individualised investment compacts will be set up between interested African countries, international organisations and partner countries. The various partners will commit to specific steps outlined in a catalogue of measures. The G20 will provide political support for comprehensive, country-specific packages of measures and will give African countries a platform to showcase opportunities and conditions for investment.

So far, the initiative has sparked great interest among many African countries. Côte d’Ivoire, Morocco, Rwanda, Senegal and Tunisia expressed particularly strong interest in letters to Finance Minister Wolfgang Schäuble, and their governments were invited in turn to send delegations to the G20 meeting in Baden-Baden. There they submitted clear declarations of intent that will be used as a basis for setting up investment compacts in the coming months.

These five countries, the C-5, will constitute the first group of compact countries. The Compact with Africa is a long-term project and is open to all African countries that are interested in improving their frameworks for private investment on a durable, sustainable basis.

Next steps

The next key steps - in particular, the inclusion of bilateral partners and private investors - will be prepared at the Meeting of G20 Finance Ministers and Central Bank Governors on Washington, D.C. on 20-21 April 2017 and on the sidelines of the World Economic Forum on Africa in Durban, South Africa, on 3-5 May May 2017. In addition, an international conference on the “20 Africa Partnership - Investing in a Common Future” will be held in Berlin on 12 - 13 June 2017. The conference will provide backing for the G20 Africa Partnership and the Compact with Africa and will present Africa in all its modernity and variety to policy-makers and private investors.

More on this topic

G20 Africa-Conference in Berlin

On 12-13 June 2017 the international conference “G20 Africa Partnership - Investing in a Common Future” hosted by the German Federal Ministry of Finance, the Federal Ministry for Economic Cooperation and Development and the Deutsche Bundesbank took place in Berlin.

The conference provided a platform for government representatives as well as experts and private sector stakeholders to initiate the G20 Africa Partnership and to strengthen this dialogue by exchanging views on joint opportunities and measures to overcome challenges. Central to the discussions of the conference were the three pillars of the G20 Africa Partnership: (1) to improve inclusive economic growth and employment; (2) to develop quality infrastructure especially in the energy sector; and (3) to strengthen the framework for private finance and investment in Africa (Compact with Africa). The G20 Africa Partnership builds on existing regional and international strategies in order to ensure alignment, coherence and ownership; it is based on the assumption that peace and stability are prerequisites for sustainable growth and development. Participants in the conference expressed strong support for the G20 Africa Partnership and committed to actively support it.

The conference also provided a platform for the African countries that are participating in the G20 “Compact with Africa” initiative to emphasise their political commitment and priorities. The finance ministers of Côte d'Ivoire, Ethiopia, Ghana, Morocco, Rwanda, Senegal and Tunisia, announced ambitious reform measures aimed at improving the framework conditions for private investment. The heads of the African Development Bank, the International Monetary Fund, and the World Bank as well as many G20 members and non-G20 partners indicated their support for the initiative and the implementation of individual investment compacts. The participating international organisations committed to work closely together to ensure effective coordination of the input from all Compact partners.

Investor Roundtable

During the high-level investor round table discussions as well as during the follow-up bilateral discussions with investors, the finance ministers of the Compact with Africa countries presented the first outlines of their compacts to private investors and also pointed to specific sectors and projects where private-sector participation is most needed in their countries. They used the opportunity to ask the invited private sector representatives for their feedback on the compact outlines (prospectuses).

Investors welcomed the Compact with Africa initiative and appreciated the opportunity to start a dialogue with the Compact countries. They highlighted the importance of good governance and mutual trust, good public infrastructure, access to decision-makers, transparency of decision-making, skills and training, well-functioning domestic capital markets, transparent and reliable regulation and taxation as well as minimal red tape, which are all crucial for private investors. Several business representatives indicated their interest in investing in specific countries and sectors.

Others highlighted their presence in the Compact countries and the extent of their operations. The representatives from the development finance institutions also highlighted their commitment to the initiative and specified potential contributions, ranging from technical assistance to developing innovative products that will help to crowd-in private capital.

G20 Finance Track Documents

Chair’s Sum­ma­ry_G20 Africa Part­ner­ship Con­fer­ence [PDF, 2MB]

G20 Pro­gramme [PDF, 374KB]

Compact with Africa – Country prospectuses

Information about the par­tic­i­pat­ing coun­tries [PDF, 603KB]

Infographic

Compact with Africa

Photo Gallery

G20 Africa Partnership Conference

13 June 2017

G20 Compact with Africa (CwA)

The G20 Africa Partnership is a central project of Germany’s G20 presidency. Its aim is to improve conditions for sustainable private sector investment, investment in infrastructure, economic participation, and employment in African countries.

13 June 2017

G20 Africa conference

On 12-13 June 2017 the conference “G20 Africa Partnership: Investing in a Common Future” took place in Berlin. A total of 800 guests, including 11 heads of state and government, over 30 government ministers, and 178 journalists attended the talks. The event’s main focus was the G20’s “Compact with Africa”, an initiative that aims to improve conditions for investing in Africa.

12 June 2017

Opening of the Africa Conference

On 12-13 June 2017 representatives of the G20, African countries, international organisations and investors come together in Berlin on the occasion of Germany’s G20 Africa Conference “Investing in a common future”. The conference aims at improving framework conditions for private investment in African countries and is the major event in the run-up to the G20 Hamburg Summit.

12 June 2017

G20 High-level dialogue

Germany’s G20 Africa Conference “Investing in a common future” was opened by Federal Chancellor Angela Merkel. Her introduction was followed by statements from Alpha Condé, President of the African Union and German finance minister Wolfgang Schäuble. A high-level panel discussed the “Compact with Africa”.

12 June 2017

Cross-cultural conference programme

All of Germany’s G20 events in the finance track feature music in cooperation with highly talented artists. At the Africa conference on 12-13 June 2017 in Berlin 11 musicians from Africa and Berlin came together to rehearse and première their musical interpretation of partnership an dialogue.

13 June 2017

G20 breakout sessions

The second day of the Africa conference was opened by German central bank governor Jens Weidmann. The agenda includes a high-level investor roundtable as well as different breakout sessions that focus on macroeconomic, business and financing framework conditions, digitalisation and energy infrastructure in Africa and how they can be improved.

13 June 2017

G20 Networking

The second day of the G20 Africa conference was marked by networking opportunities for the participants. Discussion groups brought them together with high-ranking experts and African entrepreneurs. The high-level investor roundtable was the forum for dialogue between key stakeholders and private investors.

Seite teilen und Drucken (EN)