About the Compact with Africa
The Compact with Africa (CWA) was initiated by the German presidency in the Finance Track, endorsed by the G-20 finance ministers and central bank governors in Baden-Baden in March 2017, to promote private investment in Africa, including in infrastructure. Central to the CWA is the concept of mutual commitments to measures and instruments to improve the framework conditions for private investment, including in infrastructure. The aim is to develop comprehensive, coordinated, and country specific investment compacts between individual African countries, international organizations (IOs), and other partners. Investment Compacts will specify measures and instruments to improve the macro, business and financing frameworks.
Possible measures and instruments for investment compacts are laid out in the CWA report jointly prepared by the African Development Bank, International Monetary Fund, and World Bank Group. The first seven African countries to express interest in individual Investment Compacts are Côte d’Ivoire, Ethiopia, Ghana, Morocco, Rwanda, Senegal, and Tunisia. Country authorities of these countries are working with the three IOs to flesh out draft investment compacts. The initiative is demand-driven and open to all African countries. Read More.
G20 Leaders' Declaration, Hamburg, 7/8 July 2017
also like to thank the G-20 under the leadership of Germany for
this innovative initiative of emphasizing the private sector.
Innovative because, in the past our cooperation has been mainly
focused on the public sector, and it is high time that the
private sector takes center stage…We in Rwanda have seen our
long‑term development through the eyes of private sector
development…The Compact with Africa comes at the right time, as
many African countries have been reforming the environment to
make it more conducive to private investment." |
Claver Gatete, Minister of Finance and Economic Planning, Rwanda
“We see the CWA as a long-term, demand-driven process. It is open to all African countries that are interested in improving their investment environment on a sustainable basis. The decision-makers are the African countries: They will determine what they want to do to improve conditions for private investment, with whom they want to cooperate, and in what form.”
Wolfgang Schäuble, German Federal Minister of Finance
“I want to commend the German government for making the Compact with Africa a G20 priority this year. This compact has the potential to mobilize investment and energize inclusive economic growth in Africa. The IMF greatly appreciates the support of the German government for our capacity-building efforts in Africa and we are very pleased to participate in this important initiative.”
Christine Lagarde, Managing Director International Monetary
New October 2017: Report to G20 Finance Ministers and Central Bank Governors on Compacts
New October 2017: TOOLBOX-Instruments Available to Support Private Investment in CWA Countries.
More information can be found here.