## Realizing the Potential of the G20 Compact with Africa

_IMF Blog, October 30, 2018_

## Source details

**Canonical URL:** [Realizing the Potential of the G20 Compact with Africa](https://www.imf.org/en/blogs/articles/2018/10/30/blog-realizing-the-potential-of-the-g20-compact-with-africa)

## Other formats

- [Markdown version](/en/blogs/articles/2018/10/30/blog-realizing-the-potential-of-the-g20-compact-with-africa/index.md)
- [Structured JSON version](/en/blogs/articles/2018/10/30/blog-realizing-the-potential-of-the-g20-compact-with-africa/index.json)
- [Bundle manifest](/en/blogs/articles/2018/10/30/blog-realizing-the-potential-of-the-g20-compact-with-africa/bundle-manifest.json)

## Bibliographic details
- Authors: Christine Lagarde
- Published: October 30, 2018

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### Overview
- Author: Christine Lagarde
- Date: October 30, 2018
- Purpose: Explain the Compact with Africa initiative and outline what is needed to accelerate private sector investment and job creation in Compact countries.
- Notable descriptive points from the page:
  - "So far, eleven African countries have joined the initiative: Benin, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia."
  - "Sixteen months on from the Berlin Summit that effectively launched the initiative..."
  - A "2 minute" video about the Compact with Africa is available on the page.

### Economic stability and fiscal constraints
- Findings:
  - "Compact countries have been implementing policies to strengthen economic stability—a fundamental pillar for attracting private investment."
  - Growth prospects for most Compact countries are described as "favorable."
  - Specific countries noted with constrained fiscal space: "Egypt, Ethiopia, and Ghana."
- Policy implications:
  - With limited room for additional borrowing, countries need to:
    - "boost domestic tax revenues"
    - "increase the efficiency of public spending to fund higher public investment"
  - Success requires coordination: "reform-minded countries in Africa, international organizations, and G20 partners need to row together."

### Business and financing frameworks
- Findings:
  - Private investors seek: "streamlined procedures, regulatory certainty, efficient courts, and transparency."
  - "Stronger and more developed financial sectors deepen capital markets and expand access to credit."
  - Coordination between governments and partners has been "highly effective in some countries, such as Ghana and Morocco—but less so in others."
- Role of development partners:
  - Need to provide "fine-tuned public support—such as risk mitigation instruments—to leverage private sector investment."
  - "The growing involvement of development finance institutions in G20 countries is welcome."
  - Development finance institutions "can contribute extensive expertise in the design and financing of large investment projects."
- Implementation requirements:
  - Implementing "ambitious and country-specific reform commitments under the Compact requires strong ownership by African countries, and stepped-up engagement and support from Compact partners to ensure adequate capacity and financing during implementation."

### Stepping up to attract more private investment
- Actions highlighted:
  - "Attracting private investment requires connecting countries directly with private investors"
    - Example given: the "Germany-Ghana Investors 'Virtual' Forum."
  - Recommendation for G20 partners: "step up their game in this area, including through funding of road shows and peer-learning events that bring together Compact countries and potential investors."
- Realism and timing:
  - Reforms "take time and require strong ownership."
  - Must be "realistic about how quickly projects can be developed and implemented, and about the challenge of overcoming political opposition in some cases."
  - Nonetheless, "the potential rewards of meaningful economic reforms are worth the wait."

### IMF support and capacity development
- IMF engagement:
  - "The IMF continues to work closely with Compact countries to build strong macroeconomic, business, and financial frameworks that will encourage a scaling-up of private investment."
  - "We maintain a close policy dialogue with all 12 Compact countries, and IMF-supported programs are in place in 10 of those countries."
- Capacity development delivered (2017–2018):
  - "the Fund fielded 129 technical assistance missions in Compact countries"
  - "trained more than 1,700 government officials"
  - Training areas included: "tax administration, public investment management capacity, and financial sector supervision."

### Demographic and long-term stakes
- Key projection:
  - "In the next decade, 140 million children will come of age in the 12 Compact countries."
- Imperative:
  - Increasing private investment is framed as essential for enabling those young people to "enter productive employment, and thereby deliver on Africa’s demographic dividend."
  - "Failure to meet this job creation challenge is not an option—and we have the tools and instruments to achieve success."

### Concluding message
- The Compact is characterized as a "pragmatic 'win-win' collaboration between advanced and developing countries."
- Final call to action: "To deliver on its full potential, reform-minded countries in Africa, international organizations, and G20 partners need to row together."
- Closing emphasis: "We must steer, not drift."

*Christine Lagarde, October 30, 2018 — IMF blog post.*

---

## Content in this bundle

- **发挥二十国集团“非洲契约”的潜力； IMF博客； 2018年10月30日**
  - [发挥二十国集团“非洲契约”的潜力； IMF博客； 2018年10月30日 (Markdown version)](/external/chinese/np/blog/2018/103018c.pdf.md){rel="alternate" type="text/markdown"}
  - [发挥二十国集团“非洲契约”的潜力； IMF博客； 2018年10月30日 (PDF)](/external/chinese/np/blog/2018/103018c.pdf){rel="external" type="application/pdf"}
- **G20「アフリカとのコンパクト」の可能性を引き出すために; クリスティーヌ・ラガルド著　IMFブログ　2018年10月30日**
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- **Реализация потенциала Соглашения Группы 20-ти с Африкой; Кристин Лагард; 30 октября 2018 года**
  - [Реализация потенциала Соглашения Группы 20-ти с Африкой; Кристин Лагард; 30 октября 2018 года (Markdown version)](/external/russian/np/blog/2018/103018r.pdf.md){rel="alternate" type="text/markdown"}
  - [Реализация потенциала Соглашения Группы 20-ти с Африкой; Кристин Лагард; 30 октября 2018 года (PDF)](/external/russian/np/blog/2018/103018r.pdf){rel="external" type="application/pdf"}

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## References

- [عربي](https://www.imf.org/ar/News/Articles/2018/10/31/blog-realizing-the-potential-of-the-g20-compact-with-africa)
- [Português](https://www.imf.org/pt/News/Articles/2018/10/31/blog-realizing-the-potential-of-the-g20-compact-with-africa)
- [https://www.imf.org/wp-content/uploads/2018/10/BLOG-1024x600-CWA-power-plant-Abidjan-CotedIvoire-Thierry-Gouegnon-Reuters-Newscom-rtrlfive308770.jpg](https://www.imf.org/wp-content/uploads/2018/10/BLOG-1024x600-CWA-power-plant-Abidjan-CotedIvoire-Thierry-Gouegnon-Reuters-Newscom-rtrlfive308770.jpg)

_Source: https://www.imf.org/en/blogs/articles/2018/10/30/blog-realizing-the-potential-of-the-g20-compact-with-africa_