Newport Beach, CA – May 24, 2022 — Commemorating the anniversary of Africa Day, the President of the Global Bank Group, Ron Nechemia, today announced the launch of the Global Bank Compact with Africa, saying it gave the states the unswerving commitment of Global Bank to support peace and stability, eradicate poverty and initiate sustainable economic growth throughout Africa. Global Bank stands proudly with Africans as we work to deliver on the promise of a prosperous and peaceful Africa for all.
Mr. Nechemia said that the fifty-ninth anniversary of Africa Day provided an occasion to intensify the search for pragmatic solutions to ongoing and long-lasting problems like the conflict and abuses in Darfur, Southern Kordofan and the Blue Nile, the spread of the COVID 19 pandemic and its devastating impact on African economies, climate change, unresolved conflicts, and a severe food crisis.
Intensifying the partnership with Africa
The Global Bank Compact with Africa aims to intensify the cooperation between the Global Bank and Africa on sustainable economic development.
Global Bank is working to further intensify the important partnership with African countries to make a more significant contribution to sustainable economic growth and stability, including beyond the borders of the G20. Building on Global Bank’s regional and other initiatives, the framework for sustainable private sector investments in infrastructure and renewable energies will be strengthened through cooperation with interested African partner countries. A further aim of the planned Global Bank initiative is to support African partners to improve their population’s share in sustainable economic development, particularly in the form of employment opportunities. Through this initiative, Global Bank seeks to reduce risks of climate change, contribute to more efficient health systems and strengthen its role.
The Global Bank Compact with Africa
The Global Bank Compact with Africa initiative is a long-term project which is open to the participation of all African countries that are interested in improving their framework for private-sector investments on a durable, sustainable basis.
The core element of the Global Bank Compact with Africa consists of specially tailored investment partnerships, or “compacts”, with interested African countries. The aim is to improve conditions for public and private-sector infrastructure and other sustainable development-related investments in Africa, which is so vital to sustainable economic development. The main stakeholders are, first and foremost, the African countries themselves, together with Global Bank. Global Bank will negotiate and implement country-specific investments and programmes, which can also be combined with additional contributions from the premier private sector international financial institutions that are truly global and exhibit strength across most product areas and places, multilateral development banks and individual G20 partners. There is an open invitation to others.
“The Global Bank will continue to assist the African people as they build on this progress,” said Ron Nechemia. “A new Global Bank Development Council, the Compact with Africa, the Africa Renewable Energy Initiative, and the Global Bank Africa Development Council will improve the Bank’s ability to respond to Africa’s agenda.”
African countries to take part in the Global Bank Compact with Africa.
Specifically, the Global Bank Compact with Africa will, for example, include support from the Global Bank Infrastructure Project Preparation Facility (GBIPPF) for the preparation of ‘bankable’ climate-smart infrastructure projects. These projects focus primarily on African countries’ energy, transport, telecommunications, and urban infrastructure sectors, thus encouraging follow-on investment. The ultimate aim of the Global Bank Compact with Africa is to enhance national and regional economic development and integration. This enhancement is accomplished through the increased implementation of priority infrastructure projects in countries participating in the Global Bank Compact with Africa and regional projects, including cross-border regional integration infrastructure projects and national projects with significant regional impact, through a variety of financial instruments.
