Business and Economy

World Bank Group and Germany launch collaboration on Africa development projects

The World Bank Group and the German Federal Ministry for Economic Cooperation and Development (BMZ) have announced a deeper partnership for economic development in six countries in Africa.

BMZ will provide significant additional financial support through the partnership, which will harness World Bank Group expertise on the ground in order to catalyze investment, job creation and sustainable economic growth.

The partnership flows from a Joint Declaration of Intent between BMZ and the Bank Group signed at an Africa Investment Summit in Berlin on October 30, 2018. It sets out parameters for joint action in Morocco and Tunisia in North Africa, and Côte d’Ivoire, Ethiopia, Ghana, and Senegal in Sub-Saharan Africa. The countries will benefit from joint financial support for technical assistance, development policy operations and other reform programs provided by the World Bank Group.

Included in the partnership is a time frame for joint missions to the six countries and guidance for potential reforms to increase private capital inflows and job creation. The sectors covered include renewable energy, power grid modernization, jobs and skills training, investment policy and land reform, and development of the automotive sector.

“Millions of young people will be entering the job market in Africa in the years ahead,” said World Bank Chief Executive Officer, Kristalina Georgieva. “Good policy reforms pay off by creating a dynamic business environment that can unleash the potential of the private sector. We are pleased to be working with the Government of Germany to step up our joint engagement on this important agenda.”

“Germany wants to see more investments and jobs in Africa and has identified reform countries under the G20 Compact with Africa Initiative,” said State Secretary in the German Ministry for Economic Cooperation and Development, Martin Jäger. “To make this happen we will forge a new type of partnership with the World Bank Group. In order to achieve quick and tangible results, we will work with the World Bank Group in a much more integrated way – regularly aligning our engagements with regard to policy reforms and concrete investments as well as technical assistance.”

The six countries have been selected by BMZ are participants in the G20 Compact with Africa, an initiative that was launched in 2017 under the German G20 Presidency. The Compact with Africa brings together G20 members with 12 countries in Africa, with the support of the World Bank Group, International Monetary Fund, and African Development Bank.

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