CwA generates over 190 billion {dollars} for Africa’s economic system – SABC Information

Finance Minister Enoch Godogwana says the Compact with Africa initiative, which was launched in 2017 under the chairmanship of South Africa, has grown into a dynamic initiative that has mobilised over 191 million US dollars in private capital.

Godongwana was speaking at the G20 Compact with Africa (CwA) side event at the G20 Fourth Finance and Central Bank Deputies Meeting taking place in Durban.

CwA was initiated under the Germany G20 Presidency to promote private investment in Africa.

Godogwana says the CwA presents opportunities for the continent to grow its economy.

“While the continent is rich in opportunity, it continues to face significant challenges ranging from infrastructure, deficit and climate vulnerability to constrained fiscal space and limited access to long-term private capital. In this context, the Compact for Africa initiative remains a promising platform for fostering reform-driven investment partnership between African countries and the private sector.”

Strengthening relations with Africa

German Finance Minister Lars Klingbeil says his government wants to deepen its relations with African countries through the CwA programme.

Klingbeil, who describes the initiative as dynamic and results-driven, demonstrates the power of partnership and peer learning.

Klingbeil says Germany will invest 100 million Euros into the World Bank Trust which is set up to facilitate African countries to unlock their full economic potential

“Germany’s new government wants to deepen its engagement with its African partners and we will continue to provide strong support with the compact, but more generally, we also want to engage in new thinking about development partnerships. The German government has committed itself to establish a new commission. Our plan is to set up an international forum where experts from politics, civil society, business, and research can meet on a regular basis to search for new and efficient solutions.”

Private investment 

Meanwhile, World Bank President Ajay Banga says Africa has all the resources to meet its energy needs.

However, the continent needs investment. Banga says this is where the private sector comes in, as it is the engine to grow the economy.

“The private sector is the engine of job creation. The private sector accounts for 90% of all employment, most of it through small businesses working to create the conditions that allow all businesses to thrive… The private sector cannot succeed on its own; it needs the right conditions to thrive.”

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