G20 Compact With Africa Peer Learning Workshop On Private Sector-Led Diversification And Growth

IMF News, July 17, 2019

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Canonical URL: G20 Compact With Africa Peer Learning Workshop On Private Sector-Led Diversification And Growth

Workshop jointly organized by the Ethiopian Investment Commission and the International Monetary Fund; held in Addis Ababa, Ethiopia.
Date: July 17, 2019.
Objective: Advance the agenda of the G20 Compact with Africa by boosting private investment to drive economic growth, structural transformation, and export diversification amid limited fiscal space in many African countries.
Participants included government officials from Compact with Africa countries, private sector representatives, civil society, academics, bilateral and multilateral development partners, and representatives of the G20 Africa Advisory Group and G20 presidency.

Research cited: Fall 2017 Regional Economic Outlook.
Factors associated with higher economic diversification:
- macroeconomic stability
- access to credit
- good infrastructure
- a conducive regulatory environment
- a skilled workforce
- more equality
- trade integration (broadens access to markets and opportunities for private investors)
African Continental Free Trade Agreement (ACFTA) progress noted as advancing market integration, described as establishing a market of "1.2 billion people with a combined economic production of US$2.5 trillion."

Comparative lessons from successful diversification strategies:
- economic policy dimensions
- political economy considerations
Policy options and practical areas for action:
- attract foreign direct investment (FDI)
- improve competitiveness in industry
- integrate into global value chains
- improve the quality of exports
Emphasis on translating past experiences into actionable approaches for Compact countries.

Ethiopia presented as an interesting case due to an ambitious reform agenda aimed at:
- boosting private sector-led growth
- attracting foreign direct investment
- increasing export diversification
- promoting greater integration with the regional and global economy

Continued IMF engagement with Compact countries and partners to:
- support reforms strengthening macroeconomic stability
- improve the business environment
- catalyze private investment through coordination with bilateral and multilateral partners
Workshop intended to inform and refine IMF policy advice through exchanges on practical reform measures and country experiences.

Remarks by Abebe Aemro Selassie, Director, African Department, IMF — July 17, 2019.