Africa Advisory 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 opportunities.
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 countries.