Mobilizing Private Investment and the Compact with Africa: A Preliminary Assessment and Steps Ahead

The Compact with Africa (CwA) is a structured partnership between volunteering African countries and the G20 with the inclusion of key multilateral and bilateral partners and, very importantly, the private sector. It was launched by the German G20 Presidency in March 2017. As of May 2018, 11 African countries are participating in the CwA: Benin, Guinea, Côte d’Ivoire, Ghana, Egypt, Ethiopia, Morocco, Rwanda, Senegal, Togo, and Tunisia.

The CwA is an opportunity for increasing private investment (particularly in infrastructure) in Africa through improved coordination and deeper stakeholder engagement. The process can increase transparency and provide better access to information on investment support mechanisms. It will, therefore, help to continue to redefine roles of development actors, including governments, international organizations, and the private sector. An initial assessment of the CwA, one year after its inception, has indicated the need to enhance monitoring and accelerate the implementation of the initiative (Compact Monitoring Report, 2018). Based on this initial assessment and an unattributed pilot survey among private sector actors (undertaken by the authors), the T20 Africa Standing Group proposes the G20 undertake a regular private sector survey, which shall contribute to a systematic integration of the private sector in the monitoring of the CWA, and improve investment tracking.

Task Force: Cooperation with Africa