The African Development Bank (AfDB) has reiterated the need for African countries to maintain sound policies to improve investors’ interest as well as addressing fiscal sustainability concerns on the continent.
The bank, on its website said that heightened fiscal vulnerabilities were weakening fiscal revenues and growth, particularly for commodity-exporting countries in Africa.
Director-General of the bank’s Southern African Bureau Kapi Kapoor said this during the Think20 (T20) conference in Tokyo.
The T20 summit convened top policy experts to detail innovative T20 Japan policy solutions for consideration during the G20 Leaders’ summit in Osaka on June 28 and 29.
As Lead Co-Chair of the Cooperation with Africa Task Force, Kapoor emphasised that African countries needed to strengthen domestic resource mobilisation and improve public investment management, to entrench fiscal sustainability.
According to him, increasing tax revenue collections, savings mobilisation and efficiency of public spending are critical factors.
Kapoor called on the G20 to support several initiatives, including data harmonisation, tax compliance and development of effective debt resolution frameworks.
In the policy brief on the “G20 Compact with Africa (CWA)”, which covered macroeconomic, business and financing frameworks, Kapoor stressed the need to improve conditions for mobilising private sector investments.
He said it would promote sustainable development in African countries.
Kapoor called on G20 partner countries and international organisations to coordinate more closely, increase technical assistance and provide support for early-stage project preparation to drive more investments.
He also encouraged member countries of the CWA to commit to implementing key reforms that would create better environment to attract private investment.
“This includes setting up reliable regulations and institutions, establishing investor protection and providing political risk insurance amongst others,” Kapoor added.
While decrying decline in development assistance, Kapoor assured the AfDB’s commitment to driving development through investment.
According to him, the bank’s maiden Africa Investment Forum held in Johannesburg in Nov. 2018 secured investment interest in 40 deals across the continent worth over 38 billion dollars in just two days.
In a video message, the Prime Minister of Japan, Mr Shinzo Abe, underscored the value of the meeting.
Abe said: “I am delighted to hear that T20 members have discussed various solutions for realising a sustainable, inclusive and resilient society.”
“I also expect you will present new perspectives and a clear path towards resolving the challenges that the world faces.”