Africa is attracting renewed attention from major powers and investors as a fast-growing continent with enormous potential for renewable energy, trade, and development. The G20 Compact with Africa (CwA) conference, hosted by German Chancellor Olaf Scholz in Berlin on November 20, 2023, aims to foster economic reforms and partnerships that can mobilise private investment and promote sustainable growth in Africa.
The CwA initiative, launched in 2017 under the German G20 presidency, brings together 13 reform-minded African countries, international organisations, and bilateral partners from G20 and beyond to coordinate country-specific agendas and support policy measures that can improve the macro, business, and financing frameworks in Africa. The initiative is demand-driven and open to all African countries that are willing to join.
The conference will be attended by leaders from more than a dozen African countries, as well as European Commission President Ursula von der Leyen, French President Emmanuel Macron, Dutch Prime Minister Mark Rutte, and representatives of the African Union, the African Development Bank, the International Monetary Fund, and the World Bank Group. The conference will be preceded by a German-African investment summit, where German businesses and CwA countries will discuss investment opportunities and partnerships in sectors such as energy, trade, infrastructure, local value addition, and new technologies.
The conference comes at a time when Africa is facing multiple challenges, such as the impact of climate change, the need for economic diversification, the lack of infrastructure and energy access, and the effects of the COVID-19 pandemic. According to the World Bank, Africa’s economic growth is projected to rebound to 3.4% in 2023, after contracting by 2.1% in 2020, but the recovery remains fragile and uneven across countries and regions.
However, Africa also has enormous opportunities and resources to transform its energy and economic systems and achieve the Sustainable Development Goals and the Paris Agreement. According to the International Renewable Energy Agency, Africa has vast potential in wind, solar, hydro, and geothermal energy, and falling costs are making renewables more competitive and accessible. Africa also has abundant mineral resources that are essential for the production of electric batteries, wind turbines, and other low-carbon technologies.
The conference will showcase the progress and achievements of the CwA countries in implementing their reform agendas and attracting private investment, as well as the challenges and gaps that need to be addressed. The conference will also explore the potential for regional integration and cooperation, as well as the role of multilateral institutions and development partners in supporting the CwA initiative.
The conference will highlight the importance of a green and inclusive recovery for Africa and the need for a new vision of partnership and cooperation between Africa and the rest of the world. The conference will also demonstrate the commitment and leadership of Germany and the European Union in supporting Africa’s development and energy transition, and the mutual benefits of strengthening the ties between the two continents.
Source: Reuters
