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A Better Investment Framework for Africa

Although Africa’s enormous economic potential is not news, until now, policymakers around the world have not successfully defined the political and economic steps that must be taken to enable Africa to realize this potential fully. Germany's G20 presidency seeks to change that.

BERLIN – Africa’s enormous economic potential is not news. But, until now, policymakers around the world have not successfully defined the political and economic steps that must be taken to enable Africa to realize this potential fully. That is why the German G20 presidency has launched its G20 Africa Partnership initiative.

At the core of this effort to intensify cooperation with Africa lies the G20 Compact with Africa (CWA). The CWA offers interested African countries the opportunity to improve conditions for private investment, including in infrastructure.

The CWA’s structure is straightforward: African countries, together with their bilateral partners and international financial organizations with proven expertise on Africa (such as the African Development Bank, the World Bank Group, and the International Monetary Fund), will jointly develop, coordinate, and implement tailor-made measures. The main aim is to lower the level of risk for private investments, by improving economic and financial conditions and strengthening institutions. Over time, the resulting increase in investment will boost growth and productivity, create jobs, and raise living standards, as envisioned in the African Union’s own Agenda 2063 program.

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