Compact with Africa Common goals for Africa

It is the third G20 Compact with Africa conference. Representatives of the twelve participating African states, G20 states and international organisations met on Tuesday at the Federal Chancellery for the high-level conference hosted by Chancellor Angela Merkel. They reviewed progress to date and discussed new goals. Here are some frequently asked questions about the Compact with Africa.

Map showing the African states involved in the Compact with Africa

Twelve Africa countries are involved in the Compact with Africa - talking and working together

Photo: Bundesregierung

What is the "Compact with Africa"?

The initiative is a partnership of equals. It was initiated in 2017 under Germany’s G20 Presidency. The Compact is a key element of a new cooperation arrangement with Africa. The goal is to work with the African states to enhance the environment for private investment and employment in Africa. "We don’t want to talk about Africa, but to work with the African states," explained Chancellor Angela Merkel in her video podcast.

What countries are involved in the "Compact with Africa"?

Twelve pro-reform states are currently involved:  Benin, Burkina Faso, Cote d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia.

How does the Compact with Africa work?

The Compact brings together each of the participating African states with a G20 partner country and international organisations such as the World Bank, the International Monetary Fund and the African Development Bank. There are no standardised solutions in this cooperation. Together, the partners elaborate specially tailored reform programmes and promotion measures for every country. The main thrust is to increase private-sector investment in African states. To achieve this, the partner countries implement reforms – in the fields of financial and economic policy, for instance. Higher tax revenue can be used to develop the infrastructure in these states.

What do the G20 states do?

While the African states are implementing reforms, the G20 states step up efforts to bring partner countries together with international investors. They are also coordinating promotion measures. All participants meet regularly as Compact teams, that have been set up in all partner countries. Germany has also facilitated the awarding of loan guarantees, which makes it easier for countries to invest in the pro-reform states.  

What else is the German government doing? 

Germany has entered into special reform partnerships with Côte d’Ivoire, Ghana and Tunisia. The partnerships are managed by the Federal Ministry for Economic Cooperation and Development. The three cooperation arrangements aim to expand the use of renewables, improve energy efficiency, and develop the financial and banking sector.

What is the focus of the conference on Tuesday?

The ongoing discussion between and among partner countries, the G20 and international organisations is a key element of the entire concept. The partners aim to discuss how the Compact has developed and how it can best be advanced. "We will be discussing investment, economic progress and enhanced political frameworks," announced Angela Merkel.

Before the meeting at the Federal Chancellery, an international Investment Summit will take place, attended by the Chancellor, the heads of state and government of African states, other politicians, and representatives of private-sector businesses that have invested in the twelve participating African states.