## The Compact with Africa—The Contribution of the IMF _IMF Blog, June 12, 2017_ ## Source details **Canonical URL:** [The Compact with Africa—The Contribution of the IMF](https://www.imf.org/en/blogs/articles/2017/06/12/the-compact-with-africa-the-contribution-of-the-imf) ## Other formats - [Markdown version](/en/blogs/articles/2017/06/12/the-compact-with-africa-the-contribution-of-the-imf/index.md) - [Structured JSON version](/en/blogs/articles/2017/06/12/the-compact-with-africa-the-contribution-of-the-imf/index.json) - [Bundle manifest](/en/blogs/articles/2017/06/12/the-compact-with-africa-the-contribution-of-the-imf/bundle-manifest.json) ## Bibliographic details - Authors: Christine Lagarde - Published: June 12, 2017 --- ### Purpose and context - The Compact with Africa aims to boost private investment by harnessing the expertise and resources of governments, investors, and international organizations. - The Compact seeks to facilitate projects that lift productivity and living standards and create fresh opportunities across Africa. - The German G20 presidency launched the Compact as an engine for job creation and poverty reduction. ### Demographics and labor market challenge - 70 percent of the population is under 35 years of age. - Estimated jobs needed: 20 million jobs need to be created in Africa every year until 2035 just to absorb new entrants into the labor force. ### IMF priorities and contributions - The IMF commits to working toward a resilient macroeconomic environment and sustainable debt burdens to create conditions for more and better-paid jobs. - The IMF is increasing engagement with participating Compact countries, building on long-term relations. Examples of IMF engagement: - Tax policy reforms and strengthening administrative capacity to create stronger and more reliable sources of government revenue. - Revenue aspiration: countries should not aspire to less than achieving revenue gains of half a percent of GDP each year. - Intended uses of revenue gains: prevent build-up of excessive debt and generate extra resources for investment in health, education, and infrastructure. - Improving the efficiency of public infrastructure spending. - Infrastructure investment need: $100 billion per year in investment to close Africa’s infrastructure gap. - Current shortfall: less than half that amount is being undertaken. - Growth impact: recent analysis shows that the regional deficit in physical infrastructure reduces growth by 2 percentage points a year. - Country examples: Ghana, Côte d’Ivoire, and Togo have used IMF expertise and tools to raise public spending efficiency; Morocco, Senegal, and Tunisia to be worked with in the year of publication. - Supporting financial sector development. - Areas: building healthy and well-supervised banking systems, macro-prudential policy, managing capital flow volatility in times of distress. - Objective: greater financial stability to support more private investment and more inclusive growth. - Strengthening rule of law and institutions, including building defenses against money laundering and the financing of terrorism. - Country examples: recent IMF engagement in Ghana, Morocco, and Tunisia on AML/CFT matters. - Capacity development emphasis. - Capacity development accounts for about a quarter of the IMF’s overall activities. - Online courses: have attracted almost 30,000 participants since 2013, with the largest share of government participants from sub-Saharan Africa. - Financial assistance and annual assessments. - Active IMF-supported programs exist in the first five Compact countries: Côte d’Ivoire, Morocco, Rwanda, Senegal, and Tunisia. - IMF programs can be fine-tuned to accommodate compact initiatives while protecting macroeconomic resilience and public debt sustainability. ### Policy recommendations and required contributions - For African governments: - Step up reforms to improve economic, business, and financial climate, and governance. - For partners (G20 countries, international organizations, investors): - Support the design and implementation of successful investment compacts tailored to each country. - For the IMF: - Continue to play its role in ensuring macroeconomic stability, sustainable debt levels, capacity development, technical assistance, training, and financial support as needed. ### Expected outcomes - Higher private investment and job creation driven by policy reforms, improved infrastructure spending efficiency, stronger financial sectors, and enhanced institutional frameworks. - More durable and inclusive growth through revenue gains and prudent debt management. *Article by Christine Lagarde — June 12, 2017.* --- ## Content in this bundle - **非洲契约——IMF的贡献, 作者：克里斯蒂娜·拉加德, 2017年6月12日** - [非洲契约——IMF的贡献, 作者：克里斯蒂娜·拉加德, 2017年6月12日 (Markdown version)](/external/chinese/np/blog/2017/061217c.pdf.md){rel="alternate" type="text/markdown"} - [非洲契约——IMF的贡献, 作者：克里斯蒂娜·拉加德, 2017年6月12日 (PDF)](/external/chinese/np/blog/2017/061217c.pdf){rel="external" type="application/pdf"} - **アフリカとのコンパクト—Imfの貢献: クリスティーヌ・ラガルド; Imf ブログ2017年6月12日掲載** - [アフリカとのコンパクト—Imfの貢献: クリスティーヌ・ラガルド; Imf ブログ2017年6月12日掲載 (Markdown version)](/external/japanese/np/blog/2017/061217j.pdf.md){rel="alternate" type="text/markdown"} - [アフリカとのコンパクト—Imfの貢献: クリスティーヌ・ラガルド; Imf ブログ2017年6月12日掲載 (PDF)](/external/japanese/np/blog/2017/061217j.pdf){rel="external" type="application/pdf"} - **„Compact with Africa“** - [„Compact with Africa“ (Markdown version)](/external/lang/german/np/blog/2017/061217g.pdf.md){rel="alternate" type="text/markdown"} - [„Compact with Africa“ (PDF)](/external/lang/german/np/blog/2017/061217g.pdf){rel="external" type="application/pdf"} - **«Контракт с Африкой» — вклад МВФ; Кристин Лагард; 12 июня 2017 года** - [«Контракт с Африкой» — вклад МВФ; Кристин Лагард; 12 июня 2017 года (Markdown version)](/external/russian/np/blog/2017/061217r.pdf.md){rel="alternate" type="text/markdown"} - [«Контракт с Африкой» — вклад МВФ; Кристин Лагард; 12 июня 2017 года (PDF)](/external/russian/np/blog/2017/061217r.pdf){rel="external" type="application/pdf"} --- ## References - [عربي](https://blog-montada.imf.org/?p=5404) - [https://www.imf.org/wp-content/uploads/2017/06/1099x500-Christine-Lagarde-kids-dancing-Nigeria-IMF-Staff.jpg](https://www.imf.org/wp-content/uploads/2017/06/1099x500-Christine-Lagarde-kids-dancing-Nigeria-IMF-Staff.jpg) _Source: https://www.imf.org/en/blogs/articles/2017/06/12/the-compact-with-africa-the-contribution-of-the-imf_