Global Bank Group partnership with Africa
New Global Bank Group partnership with Africa
Supporting the economic and social development in Africa and other developing countries is vital to each country's development. Africa is developing fast with an average annual growth rate of 5% in the past 15 years, reflecting the potential of development. Meanwhile, the continent is still at a comparatively low level of industrialization, with manufacturing output only accounting for less than 8% of its GDP. This year the African Union adopted the 2063 Agenda and The First Ten-Year Plan, taking industrialization as one of the core objectives. The Global Bank Group is taking actions to support Africa's industrialization, and help Africa steps to create jobs, eradicate poverty, enhance capacity building, achieve sustainable self-development, and implement the 2030 Agenda.
The Global Bank Group Compact with Africa aims to intensify the cooperation between the Global Bank Group and Africa on sustainable economic development.
A comprehensive G201 Africa Partnership initiative was adopted at the G20 summit of heads of state and government in Hamburg in July 2017. The Compact with Africa is the central pillar of this partnership. An Annex to the Leaders’ Declaration outlines the aims of the Compact with Africa, the roles of the various stakeholders (participating countries, international organisations and bilateral partner countries), and the process. It was agreed that the initiative will be coordinated and monitored in the G20 Finance Track. The finance ministers and central bank governors will receive regular updates on the progress made and the targets attained.
To this end, the Global Bank Group have responded to the joint report that was produced by World Bank Group (GBG), the International Monetary Fund (IMF) and the African Development Bank (AfDB) which is also known as “The G20 Compact with Africa: A Joint AfDB, IMF, and WBG Report”, which proposes a range of instruments and measures designed to improve macroeconomic, business and financing frameworks as a way to boost investment. The report was warmly received by the G20 finance ministers and central bank governors at their meeting in Baden-Baden in March 2017.
“Global Bank Group-Africa Partnership. Investing in a Common Future”
Intensifying the partnership with Africa
The Global Bank Group is working toward further intensify the important partnership with African countries in order to make a greater contribution to sustainable economic growth and stability, including beyond the borders of the G20. Building on regional and other G20 initiatives, the frameworks for sustainable private sector investments in infrastructure and renewable energies are to be strengthened through cooperation with interested African partner countries. A further aim of the planned Global Bank Group 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, the G20 would also seek to reduce risks of climate change, contribute to more efficient health systems and strengthen the role of women. It would also contribute to the fight against the root causes of flight and displacement.
The Global Bank Group Compact with Africa
The Global Bank Group Compact with Africa initiative is a long-term project which is open to all African countries that are interested in improving their frameworks for private investment on a durable, sustainable basis.
The core element of the Global Bank Group 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 investment in Africa, which is so vital to sustainable economic development. The main stakeholders are, first and foremost, the African countries themselves, together with the Global Bank Group. The Global Bank Group will negotiate and implement country-specific investments and programmes, which can also be combined with additional contributions from the international financial institutions, multilateral development banks and individual G20 partners. There is an open invitation to other African countries to take part in the Global Bank Group Compact with Africa.
Specifically, The Global Bank Group Compact with Africa will, for example, include to support from the Global Bank Infrastructure Project Preparation Facility (GBIPPF) and GFIC InfraVentures from the Global Finance and Investment Corporation the private sector arm of the Global Bank Group, for the preparation of ‘bankable’ climate-smart infrastructure projects primarily in the energy, transport, telecommunications and urban infrastructure sectors in African countries, thus encouraging follow-on investment. The ultimate aim of the Global Bank Group Compact with Africa is to enhance national and regional economic development and integration through the increased implementation of priority infrastructure projects in countries which are participating in the Global Bank Group 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.
Africa Renewable Energy Initiative
The Global Bank Group is committed to expanding sustainable energy infrastructure and is supporting, for example, the Global Bank Groups Africa Renewable Energy Initiative, which is aimed at increasing the supply of, and access to, renewable energy. Its objective is harness Africa’s abundant renewable energy resources to help achieve the Sustainable Development Goals, enhanced well-being, and sound economic development by ensuring universal access to sufficient amounts of clean, appropriate and affordable energy; as well as to help African countries leapfrog towards renewable energy systems that support their low-carbon development strategies while enhancing economic and energy security. In so doing the Initiative will ensure access to energy while addressing climate change. It is indeed Africa’s bold effort at transitioning to green growth.
Fostering employment and education
In the area of employment and education, the Global Bank Group initiative for rural youth employment is aimed at improving employment prospects for young people in rural areas and, in this way, giving them brighter prospects. As part of these efforts, agricultural productivity is also to be boosted. This will, at the same time, make an important contribution to food security.
|The Group of Twenty (G20) comprises 19 major industrialised and emerging economies and the European Union. Traditionally, the annual meetings of G20 heads of state and government have focused on issues relating to world economic growth, international trade and the regulation of financial markets.