Group Meeting, May 4, 2017
The Africa Advisory Group Meeting held on May 4, 2017 in Durban brought together the Compact countries, development partners and international organizations, and the private sector. The representatives from Morocco, Rwanda, and Senegal made presentations of their reform programs as well as investment opportunities for the private sector. The private sector participants gave feedback, highlighting their ongoing ventures as well as concerns about investing in the continent.
Key takeaways include:
- The three countries highlighted the attraction of their
economies. Morocco cited their proximity to Europe, quality of
infrastructure, ease of doing business, and low labor costs. Rwanda
mentioned their excellent ease of doing business ranking, access to
the fast-growing East Africa Community. Senegal highlighted good
governance and their cheap and skilled workforce.
- The countries also laid out key priority reforms and investment
Reforms: (1) public expenditure policy, domestic revenue mobilization, budgetary framework, public investment management, and fiscal risks associated with public-private partnerships (PPP); (2) PPP legal framework, liberalization of services, strengthening competition, and the regulation of electricity services; (3) financial inclusion, SME and innovation financing, and deepening of financial markets.
Sectors: transport, energy, agribusiness
Reforms: (1) maintaining macro-economic stability and debt sustainability; (2) commitment to be responsive to private investors’ needs (Rwanda Development Board), developing industrial parks with reliable infrastructure, trade policy to increase access to international markets, and investing skills development.
Sectors: energy, transport, agri-business, industrial parks, ICT, financial sector
Reforms: (1) domestic revenue mobilization to create fiscal space, public investment management and fiscal risks associated with PPPs; (2) business environment and special economic zones; (3) deepening financial markets.
Sectors: agri-business, energy, special economic zones, digital economy
- The private sector expressed strong support for the
initiative, stating that Africa will be the next destination for
private investment. Some of them raised concerns over (1) the lack
of connectivity between African countries; (2) the underdevelopment
of PPP frameworks; (3) payment delays; and (4) insufficient trade
facilitation. An investor suggested setting up a Compact with Africa
fund to pool resources from bilateral partners such as the EU to
provide blended finance to private investors in Compact