G20 Compact with Africa: A New Era of Partnership and Investment

Deputy President Paul Mashatile.

By Mpho Dube - Editor in Chief of The Azanian

The Compact with Africa initiative has taken a significant step forward with the launch of a new Multi-Donor Trust Fund, designed to support the next phase of reforms and investment in Africa.

The fund, supported by the World Bank, has received an initial contribution of 10 million Euros from Germany.

Speaking at the Compact with Africa G20 Leaders' Summit, Deputy President Paul Mashatile, welcomed international leaders and emphasized the importance of strong cooperation between the G20 and Africa. He highlighted the vital role of the private sector in driving growth, creating jobs, and promoting shared prosperity.

"The Compact aims to deepen investment, create jobs, and build sustainable prosperity through stronger partnerships with the private sector," Mashatile said. "We welcome the increased interest by African countries in joining the initiative, which underscores its relevance and value."

The Compact with Africa was established in 2017 during Germany's G20 Presidency and has made steady progress in supporting participating countries in implementing reforms and mobilizing investment.

Mashatile announced that South Africa would prioritize revitalizing the Compact with Africa in 2025, with a focus on expanding membership and enhancing visibility within the G20 and across the African continent.

The event was attended by international leaders, including Chancellor Friedrich Merz of Germany, President of the World Bank Ajay Banga, and other dignitaries.

The Compact with Africa is a key channel for partnership, reform support, and increased private sector involvement, aiming to unlock investment and build resilient, inclusive economies across the continent.

The Azanian will continue to monitor the progress of the Compact with Africa and provide updates on its impact on the continent.