The G20, World Bank Group, International Monetary Fund, and African Development Bank are partnering in a new way to stimulate private investment in Africa
- The Compact with Africa brings together the G20, the World Bank Group, International Monetary Fund, and the African Development Bank to spark greater private investment in Africa
- Compact countries are Benin, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.
- The first Compact Monitoring Report shows significant progress implementing macroeconomic reforms, with more work needed to improve business environments and deepen financing frameworks.
Over the past year, many of my colleagues in international development have been asking about the G20 Compact with Africa: What exactly is it? What’s in it for African countries? How is it different from what we’re already doing? How does it complement or further the World Bank Group’s ongoing work?
Their curiosity reflects a growing awareness of the role the private sector must play in helping Africa achieve its development goals. The G20, in addition to its high-profile summits and communiques, undertakes some really important work through several “tracks,” including the finance track consisting of G20 finance ministers and central bank governors. It was via the finance track that the Compact was launched in March 2017 under the German Presidency of the G20. It focuses on macro-financial issues that are foundational for enhancing infrastructure financing and for increasing private investment in developing countries.