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30 October 2018

Ger­man gov­ern­ment pro­mot­ing pri­vate-sec­tor de­vel­op­ment in Africa

On 30 October 2018, the heads of state and government of the African countries participating in the Compact with Africa attended a high-level conference hosted in Berlin by German Chancellor Angela Merkel. Olaf Scholz, who is advancing the initiative in cooperation with the other G20 finance ministers, welcomed the fact that German businesses are making a stronger commitment to Africa.

"Compact with Africa"-Konferenz in Berlin
Source:  Federal Ministry of Finance

The German government wants to boost the private sector in Compact countries by putting €1 billion towards targeted measures benefiting German and African companies.

The Compact with Africa (CwA) is a central pillar of the G20-Africa partnership launched under Germany’s G20 presidency. Reform-minded African countries, international organisations and bilateral G20 partners are cooperating closely in order to achieve the goal of the CwA – boosting the private sector to enhance the growth potential of these countries. The reforms and support programmes are designed to make these countries more attractive to business.

Since its launch in 2017, 12 countries have joined the initiative: Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Egypt, Ethiopia, Morocco, Rwanda, Senegal, Togo and Tunisia. A year later, the reform efforts and reliable politics in the Compact countries are clearly paying off. This is confirmed by the monitoring report published jointly by the World Bank and the African Development Bank. In locations where the business climate has improved, investors’ interest is growing. This is powerfully illustrated by the many flagship projects.

The German government wants to support the CwA with a range of accompanying measures. For example, it is setting up a fund to incentivise small and medium-sized German businesses to take up or expand activities in participating countries. Support is also being provided for investments in small and medium-sized businesses in the Compact countries. Furthermore, there will be efforts to strengthen business ties with Africa.

Logo Compact with Africa
Source:  Federal Ministy of Finance
The participants of the Compact with Africa conference in Berlin.
Source:  Federal Ministy of Finance