New G20 Africa Partnership

For more investment and employment

Vocational school in Ghana

The new G20 Africa Partnership aims to intensify the cooperation between the G20 and Africa on sustainable economic development. The starting point is the African Union's Agenda 2063.

The G20 Africa Partnership provides a framework for G20 initiatives on investment promotion, increased use of renewable energy, rural youth employment, digital education for girls and women and fair taxation. It has three pillars:

  • improving conditions for private investment so as to stimulate Africa's economy ("Compact with Africa"),
  • investments in renewable energies and resilience to climate change in Africa, and
  • employment and vocational training for inclusive growth in Africa.

The G20 Africa Partnership will continue beyond Germany's G20 Presidency. Those countries due to take on the Presidency in future, and also other partners, are called upon to take the Partnership forward.

Compact with Africa

The Compact with Africa is a core element of the G20 Africa Partnership and consists of specially tailored investment partnerships, or "compacts", with interested African countries. The aim is to improve conditions for private investment in Africa, which is so vital to sustainable economic development. The main stakeholders are, first and foremost, the African countries themselves, together with the World Bank, the International Monetary Fund and the African Development Bank. Together, they will negotiate and implement country-specific reform programmes, which can also be combined with additional contributions from interested G20 partners.

It is up to the respective African partners to decide what measures they believe are most important and what reforms they will commit to undertake. A great many African countries have already shown considerable interest in the initiative. When Germany's G20 Presidency ended, as many as ten African countries had already joined the initiative – Tunisia, Morocco, Ghana, Rwanda, Senegal, Ethiopia, Côte d'Ivoire, Benin, Guinea, and Egypt. There is an open invitation to other African countries to follow this first group of countries and take part in the G20 Compact with Africa initiative.

Specifically, the initiative will, for example, include measures to improve the fiscal environment in order to encourage investment and ensure that reliable tax revenues are generated. That was the background to a dialogue workshop held in Tanzania in October 2017, which was attended by representatives from African tax authorities and ministries of finance. Another element of the partnership with Africa on fair taxation was the establishment, under Germany's Presidency of the G20, of the Africa Academy for Tax and Financial Crime Investigation in Kenya; this was a joint initiative with Kenya, the OECD and Italy. As well as helping to investigate financial crime, the Academy also aims to combat illicit financial flows.

Africa Renewable Energy Initiative

The G20 is committed to expanding sustainable energy infrastructure and is supporting, for example, the AU's Africa Renewable Energy Initiative (AREI), which is aimed at increasing the supply of, and access to, renewable energy. Development Minister Müller has announced that the BMZ will contribute 3 billion euros in support of the AREI's aims in the period up until 2020. The funding committed so far is being used to install renewable power generation capacity of 2.5 gigawatts, roughly the equivalent of three coal-fired power stations.

Promotion of training and employment

In the area of employment and education, the G20 is implementing two initiatives. The G20 Initiative for Rural Youth Employment has set itself ambitious targets for improving employment prospects for young people in rural areas and, in this way, giving them brighter prospects. As part of these efforts, agricultural productivity is also to be boosted. This will, at the same time, make an important contribution to food security. The #eSkills4Girls initiative helps women and girls to gain the digital skills they need to improve their employability and close the gender gap that exists in the use of digital technologies.

G20 Africa Conference

Like any partnership, the G20 Africa Partnership thrives on the close dialogue between all concerned. That is why the German government, during its G20 Presidency, staged a G20 Africa Conference in June 2017, shortly before the G20 summit. Leaders from the G20 countries came together with a large number of African leaders and representatives of the private sector and civil society to discuss and further develop this new partnership. On the fringes of the conference, the BMZ pledged support to three of the compact partners – Tunisia, Ghana and Côte d'Ivoire – in the form of reform partnerships.

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