Together for Africa’s future
On 12 and 13 June 2017, 600 experts will be meeting in Berlin to discuss how the economic environment can be improved in African countries. The most important aspects in brief.
What is the background to the conference G20 Africa Partnership – Investing in a Common Future?
The German presidency of the G20, which stands for the leading industrial and emerging countries in the financial and economic fields, regards the Africa Partnership as one of its important projects. The Compact with Africa initiative is one of the key pillars in this respect. It is being coordinated by the Federal Ministry of Finance.
What is the objective of the Compact with Africa initiative?
The initiative is designed to strengthen private participation and investments in the infrastructure in Africa. It’s a basic requirement for sustainable growth and new jobs. But it also means that better framework conditions are needed. This is why African countries, international organizations, such as the International Monetary Fund and the African Development Bank, as well as partner countries want to work together more closely in so-called investment partnerships. The African countries determine their macro-economic, business and financial market policy priorities, and come to agreements with the international organizations (IOs) on which projects have priority for their country. They then work out the necessary measures together with interested partner countries and the IOs. For instance, it may be important for African countries to develop their financial market in order to make more loans available in local currencies for investments. This is where the international organizations and partner countries want to provide support in the form of technical aid and specialist knowledge.
What has happened so far within the framework of this initiative?
Five African countries are already involved in the initiative: Côte d’Ivoire, Morocco, Rwanda, Senegal and Tunisia. They want to negotiate investment partnerships. Other countries may be joining in the initiative, for instance, Ethiopia and Ghana have already expressed interest.
What will the participants be discussing at the conference in Berlin?
Around 600 high-ranking participants will be gathering together on 12 and 13 June. On the first day there will be a meeting with Chancellor Angela Merkel, Federal Finance Minister Wolfgang Schäuble and Federal Minister for Economic Cooperation and Development Gerd Müller, and guests from Africa and the G20 membership states. They will be discussing how the economic environment can be improved and investments can be increased in African countries. On the second day there will be a series of so-called investor round tables. This is where the African countries will be presenting their reform proposals, and private investors can ask questions about the projects.
How will things continue after the conference?
The initiative is aiming towards sustainability. In the future, representatives from African countries, the G20, international organizations and investors will meet twice a year and discuss further cooperation projects.