No major global summit today is being held without an invitation or a particular engagement with Africa. The G20 Compact with Africa (CwA) also is meeting Tuesday in Berlin Germany to consider investment in Africa.
President Paul Kagame is already in Germany where he has been received by German Federal President Frank-Walter Steinmeier ahead of this year’s G20 Compact with Africa Investment Summit and Conference to be held Tuesday.
This platform brings together reform-minded African countries, international organizations and bilateral partners from G20 and beyond to coordinate country-specific reform agendas, support respective policy measures and advertise investment opportunities to private investors.
This CwA was launched in 2017 and has since sparked great interest. So far, twelve African countries have joined the initiative: Benin, Burkina Faso, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.
Previously the outcomes of the G20 Africa Partnership Conference in Berlin highlighted the need for joint measures to enhance sustainable infrastructure, improve investment frameworks as well as support education and capacity building.
The G20 Compact with Africa (CwA) was initiated under the German G20 Presidency to promote private investment in Africa, including in infrastructure.
The CwA’s primary objective is to increase attractiveness of private investment through substantial improvements of the macro, business and financing frameworks.
German Chancellor Angela Merkel launched the Compact back in 2017 during Germany’s G20 presidency with a promise to generate additional private investment in African states.
In turn, participating African states would commit themselves to implementing economic reforms. A “Merkel Plan,” joked Ivory Coast president, Alassane Ouattara.
Merkel announced a fund of up to €1 billion which would be used to support both German and African companies.
From 2017 to 2018, foreign investment in the 12 African countries which are part of the initiative has barely risen.
It rose slightly to $21 million (€19 million) – still below the level of 2016. 80% of this money went to just four countries: Egypt, Morocco, Ethiopia and Ghana.