Several heads of state and international investors responded to the summit on financing African economies held on Tuesday, May 18, 2021, in Paris. After fruitful exchanges, this summit, which aims according to Emmanuel Macron, to fill at least in part the "financing need of Africa by 2025, estimated at 285 billion dollars", has failed on strong commitments from all stakeholders.

Read the final statement:

Paris -1 The Covid-19 pandemic has caused an unprecedented global economic crisis, with major social consequences. After 25 years of continuous growth, Africa is severely affected and experienced a recession in 2020. The International Monetary Fund (IMF) estimates that up to $285 billion in additional financing over the period 2021-2025 would be needed by African countries, nearly half of which would be low-income African countries, to strengthen the response to the pandemic. Middle-income countries also require special attention. Without collective action, the funding and goals of the African Union's 2030 Agenda for Sustainable Development and Agenda 2063 will be compromised. Most regions of the world are currently launching large-scale stimulus packages, using the massive monetary and fiscal instruments at their disposal. In contrast, many African economies have neither sufficient capacity nor similar instruments to do the same. We cannot afford to leave them aside. We, the leaders participating in the Summit, in the presence of international organizations, have a responsibility to act together and to combat the great divergence that is emerging between and within countries. This requires collective action to put in place a very substantial financial support plan aimed at giving a much-needed boost to the economies of these countries and providing the means to invest for a better future. We aim to address immediate financing needs, improve the capacity of African governments to support a strong and sustainable economic recovery, and strengthen Africa's strong private sector, whose dynamism is a long-term growth driver for the continent. In the immediate future, the top priority is to defeat the pandemic. We recognize the role of large-scale immunization against Covid-19 as a global public good and join efforts to ensure equitable access in Africa to safe and affordable vaccines, treatments and diagnostics through the Facility to Accelerate Access to Counter-Control Tools Covid-19 (ACT Accelerator) and its COVAX facility, as well as the African Union's AVATT initiative. We will work to accelerate these efforts to ensure that Africa receives more vaccines, including by sharing doses, supporting market commitments and promoting trade along the value chain, as well as developing the local capacity needed to distribute vaccines. We must also, in partnership with the private sector, accelerate vaccine production by building local capacity on the African continent. This can be facilitated by voluntary sharing of intellectual property and the active transfer of technology and know-how, in accordance with international legal frameworks, for example through the pooling of licenses and the conclusion of manufacturing agreements to enable local production. We will build on the international financial system to create the fiscal space needed by African economies. We call for an early decision on an unprecedented general allocation of IMF Special Drawing Rights (SDRs) of up to $650 billion, including nearly $33 billion to increase the reserve assets of African countries. and to implement it as soon as possible, and we call on countries to use these new resources in a transparent and efficient manner. We are determined to significantly amplify its impact in Africa by studying the voluntary SDR loan through the IMF's Poverty Reduction and Growth Trust (PRGF), and by considering with the IMF, The World Bank and other multilateral development banks (MDBs) various additional options for lending SDRs to support the green, resilient, and inclusive recovery of IMF members after the pandemic, in line with the Sustainable Development Goals (SDGs). This support will be complemented by official development assistance (ODA), an ambitious 20th replenishment of the International Development Association (AID-20), the 16th general replenishment of the African Development Fund (ADF-16) in 2022 and the mobilization of additional concessional financing by the IMF, multilateral development banks and funds, as well as bilateral development agencies. We call on the MDBs to mobilize more private financing in Africa by developing and strengthening relevant risk-sharing instruments. This multilateral effort will be closely linked to the work of the network of African public development banks, involving the African Development Bank (AfDB) and national and regional public financial institutions. Firmly rooted locally, their ability to bring out more quality projects, particularly for climate, health, education, infrastructure and the private sector, is essential to the success of all measures taken at the international level to effectively finance African economies. To alleviate African economies suffering from vulnerabilities related to their external public debt, G20 and Paris Club creditors are acting as agreed in the April Communiqué of G20 Finance Ministers and Central Bank Governors and the Common Framework for Debt Treatment Beyond the Initiative Debt Service Suspension (ISSD) adopted in November 2020. To boost growth and job creation, we support National African Strategies and welcome the ambition to develop an Alliance for Entrepreneurship in Africa, which will have a broad pan-African reach and give a prominent place to businesses. This Alliance will mobilize all partners wishing to put financial and technical resources at the service of the development of the private sector in Africa, micro, small and medium-sized enterprises (MSMEs), including women entrepreneurs supported by the Initiative to Promote Women's Access to Finance in Africa (AFAWA). We look forward to the International Finance Corporation (IFC), in coordination with the AfDB, the European Bank for Reconstruction and Development (EBRD) in its countries of operation, the European Investment Bank (EIB), the other relevant MDBs and the bilateral development finance institutions concerned. Continue efforts to launch this Alliance, in collaboration with the African Union Commission, in a progressive and targeted manner. These efforts build on those of the Team Europe approach alongside the European development finance institutions to contribute to the objectives of this Summit. We reiterate our continued support for the G20 initiative on support for industrialization in Africa and the least developed countries, the G20 partnership with Africa, the Compact with Africa, and other relevant initiatives. As recovery and long-term prosperity are inseparable from reforms conducive to private sector development, we note the joint proposal by the France and Germany to further strengthen the G20 "Compact with Africa" initiative. We welcome the implementation of the Agreement establishing the African Continental Free Trade Area[1]and the continent's digital transformation aimed at bridging the digital divide and accelerating the adoption of open digital ecosystems, fair and non-discriminatory, which will produce significant benefits in terms of productivity, innovation and sustainable growth. Given our shared belief in the positive impact of trade on development, we will explore solutions to increase African added value in global supply chains. International support is needed to support recovery plans of the required scale, but this could be accompanied if necessary by more flexibility on debt and deficit ceilings where appropriate and difficult but necessary reforms to be carried out at the national level, with the help of the international community as needed. In order to finance key public policies for inclusive and sustainable growth, such as education, health, social protection and infrastructure, it will be necessary to mobilise domestic resources more strongly, increase the transparency and effectiveness of debt management and public spending, improve governance and financial integrity and create an enabling environment for the private sector through public[1]private partnerships and private financing. We will also improve the preparation and financing of infrastructure projects. We will promote a sustainable, circular and low-carbon development trajectory for Africa and ensure its climate and environmental resilience in the coming decades. We will work to broaden the range of donors and investors for climate and biodiversity finance and technology development in Africa, including by mobilizing more resources to the continent through the Green Climate Fund and the Global Environment Facility. In addition, we call on the international financial institutions to set ambitious targets in their climate projects, balancing adaptation and mitigation, and to fully align their activities with the Paris Agreement as soon as possible. Ultimately, growth and resilience depend on human capital. Our priority objective is to mobilize this capital and Africa's demographic potential and thus provide the private sector with the assets it needs. We commit to strengthen health, social protection, and education and training systems on the African continent, recognizing that they are key factors in increasing productivity on the continent and ensuring economic resilience by protecting lives, the jobs and skills of Africans. We will work together to strengthen the mobilization of African talent and consolidate public sector expertise and resources and knowledge at the local level. We believe that the commitment of the countries concerned is paramount and that the set of actions we commit ourselves to implement must go hand in hand with strong capacity-building. We will work to increase and mobilize African expertise, whether on or off the continent. Investing today in the sustainable development of African economies and their growing workforce will help make Africa the future champion of global growth. On the margins of the next Annual Meetings of the IMF and the World Bank in October 2021, it will be timely to take stock of our efforts to ensure the effective implementation of these measures and to refine the initiatives we propose.

A series of actions based on two pillars Meeting financing needs to promote a rapid, green, sustainable and inclusive recovery We call for an early decision on an unprecedented general allocation of IMF Special Drawing Rights (SDRs) (650 billion dollars), and to implement it as soon as possible, which should increase the reserves of African countries by 33 billion dollars. We urge countries to use these new resources in a transparent and efficient manner. In addition, we are determined to significantly increase its impact in Africa, by voluntarily considering: - the loan of SDRs to the PRGF Trust Fund; Building on the ongoing review of imf financing and concessional policies, the IMF estimates that its lending to low-income countries could be substantial over the 2021-2025 period. We will explore options to ensure the sustainability of the PRGF Trust Fund's grant account, which allows for zero-interest or concessional loans; - a series of additional options, together with the IMF, the World Bank, and other MDBs, to lend SDRs to support the green, resilient, and inclusive recovery of IMF members after the pandemic, in line with the Sustainable Development Goals (SDGs). We make the following commitments: - Support an ambitious 20th replenishment of the International Development Association (AID-20), with increased attention to the issues of human capital (including disability and social protection), climate change, employment and economic transformation, gender, fragility, conflict and violence, and underpinned by the cross-cutting themes of governance and institutions, debt sustainability, technology and crisis preparedness. This builds on IDA's historic partnership with Africa, including its response to the Covid-19 crisis in the form of grants and loans on very favourable terms in the 2021-2022 fiscal years. We also call on the IDA to consider ways to unlock additional resources for its members in a sustainable way, further optimizing its balance sheet. - Strengthen African public financial institutions, support increased afDB mobilization for green, resilient and inclusive development based on the 15th replenishment of the African Development Fund, the 16th replenishment of the African Development Fund (ADF-16) and the 7th general capital increase of the AfDB, and strengthen the involvement of the network of African financial institutions to support job creation and social and climate investments in line with the objectives of the Paris Agreement. - Maintain ODA at an ambitious level and, for developed countries that have committed themselves in this regard, strive to achieve the targets of 0.70 per cent of gross national income (GNI) devoted to ODA, and 0.15 to 0.20 per cent of GNI devoted to ODA to the least developed countries.

- Working for greater integration of Africa into the international financial architecture, by: o supporting, for countries with debt capacity, the development of efficient markets for public debt, including tools for improving improve their access and liquidity, including by examining the feasibility of a liquidity facility; o Urging the World Bank Group, the AfDB and other multilateral development banks and funds, including the Green Climate Fund and the Global Environment Facility, and bilateral development agencies, to "operate as a system" and improve the mechanisms for mobilising private financing, including by strengthening risk-sharing instruments, including Project Based Guarantees, Policy Based Guarantees and political risk hedging in appropriate cases. - Addressing debt-related vulnerabilities for the first time within the Common Framework for Debt Treatment, endorsed by the G20 and the Paris Club, which are acting as agreed in the April Communiqué of G20 Finance Ministers and Central Bank Governors, in the context of a sound macroeconomic framework and reforms implemented by recipient countries under an IMF-supported program. We welcome the first meetings organized for the treatment of Chad's debt, and two other requests received from Ethiopia and Zambia will be discussed. This will help avoid a new cycle of debt distress by addressing debt vulnerabilities, and help unlock new financing for sustainable and inclusive growth. - Improving sustainable financing for development and avoiding a new cycle of over-indebtedness: o by encouraging the shift to increasingly sustainable financing practices, for both borrowers and creditors. IMF program design should remain flexible to the extent possible to take into account the need to support growth in the context of the current crisis, while limiting debt vulnerabilities. The IDA's sustainable development financing policy must continue to support more transparent and sustainable financing practices; o welcoming the launch in 2021 of the voluntary self-assessment of creditors' lending practices, based on the G20 Operational Guidelines for Sustainable Financing, and supporting the implementation of the Institute for International Finance Voluntary Principles for Debt Transparency; o by the deployment by debtor countries of reforms improving the efficiency of their public spending and public financial management, in particular by aiming at progress in debt management and transparency, in the accuracy of debt data and the way in which they are reported, including by strengthening national debt services and their capacity to assess fiscal risks, budgetary commitments and contingent liabilities, as well as governance and financial integrity, in particular to combat corruption, money laundering and terrorist financing; o increasing domestic resource mobilization through sustainable, transparent and accountable tax systems. To this end, we welcome the progress made in the implementation of the Addis Ababa Action Agenda, including the increasing adoption of the Integrated National Financing Frameworks (IFFs), the work of the Addis Ababa Tax Initiative and its recent Declaration to 2025. We also welcome the efforts of the Partners of the Platform for Collaboration on Tax Issues to increase support for the development and reform of tax policies and administrations in Africa. We support the development of the Tax Inspectors Without Borders initiative of the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) to strengthen investigations into tax crime, and the taxation of natural resources. We also welcome the establishment by the OECD of a West African Academy for Tax and Financial Investigations to build capacity to combat tax crime in all regions of the African continent; - Prioritize key public policies for sustainable growth, such as education, training and health systems, within the national budget. Support greater engagement in existing coordination forums such as the Global Partnership for Universal Social Protection to achieve the Sustainable Development Goals (USP2030). ** Supporting long-term growth driven by a vibrant private sector and entrepreneurship and through the development and financing of quality infrastructure projects We reiterate our continued support for the G20 initiative on supporting industrialization in Africa and the least developed countries, the G20 partnership with Africa, the G20 Compact with Africa initiative, and other relevant initiatives. As recovery and long-term prosperity are inseparable from reforms conducive to private sector development, we take note of the joint proposal by the France and Germany to strengthen the G20 "Compact with Africa" initiative. With the support of international financial institutions, international organizations and development agencies, we will accelerate reforms for a more stable, transparent and reliable economic and investment environment. Efforts will be made to address the growing problem of the informal economy, through dedicated reforms of legal and fiscal frameworks, to strengthen national capacities and to improve and harmonize regulatory frameworks and administrative practices, including through measures on governance and financial integrity. We encourage multilateral and bilateral development banks and other development partners, including African national and regional public development banks, to play a key role in providing financial incentives to implement these reforms. We encourage greater targeting to the private sector in the concessional windows of the World Bank Group and the AfDB, considering solutions to increase the impact of the Private Sector Window on the occasion of the 20th replenishment of the IDA and the AfDB's Credit Enhancement Facility at the occasion of the 16th general replenishment of the African Development Fund (ADF-16). We welcome the ambition to develop an Alliance for Entrepreneurship in Africa aimed at contributing to the mobilization of all partners, public and private, ready to support the development of the African private sector through financial, technical and capacity building means. This Alliance will mobilize all partners willing to devote financial and technical resources to the development of the African private sector, including MSMEs, and to the amplification of the entrepreneurial dynamics at work in Africa, paying particular attention to the entrepreneurship of women and youth. We give priority to supporting investments in African start-ups through the development of new adapted tools and the development of existing instruments, adjusting our approach to the specific needs of MSMEs according to their level of development, targeting new countries and involving new actors. The Alliance specifically aims to develop innovative and cutting-edge MSMEs, the main sources of growth and job creation, and to strengthen the capacity of entrepreneurs to access finance, which is a key driver of change, innovation and inclusive economic growth in Africa. This Alliance should also benefit from the entry into force of the Agreement establishing the African Continental Free Trade Area, the implementation of which will be supported by development partners, paying particular attention to strengthening regional integration and its long-term positive effects. term on the development of local and regional markets and sustainable growth. In order to support this Alliance, we will build on the existing coalition of financial institutions, formed at the November 2020 Joint Finance Summit, which committed to join forces to exchange good practices for solutions for MSMEs in Africa. We will mobilize the positive contributions of all private sector-centred MDBs and development finance institutions engaged in Africa. We look forward to the International Finance Corporation (IFC), in coordination with the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD) in its countries of operation2, the European Investment Bank (EIB), the other MDBs concerned and the bilateral development finance institutions concerned, are redoubling their efforts to launch this alliance, in collaboration with the African Union Commission, of a 1 African Development Bank, West African Development Bank, Development Finance Institute Canada, International Development Finance Corporation ( American Development Agency ), Islamic Society for private sector development (ISD) and 15 European development finance institutions. 2 We note that the EBRD's Strategic and Capital Framework 2021-2025, adopted by the EBRD Governors, affirms a continued strategic interest in limited and gradual expansion in sub-Saharan Africa. This does not bode well for the governors' decision on this matter. Progressive and targeted way. These efforts build on those deployed under the Team Europe approach by the European development finance institutions, to contribute to the objectives of this Summit, starting initially with the following promising measures: - We support the development of African private equity and venture capital[1]venture funds, and African private equity associations and microfinance institutions, as key players in accelerating the growth of MSMEs: o building on dedicated tools (including concessional instruments) and existing partnerships such as Boost Africa (AfDB joint initiative, of the EIB and the European Commission), we will help fund managers meet the recurrent needs of African start-ups and MSMEs, to help build pools of investment-ready companies more quickly, to support fund managers' fundraising efforts and to help recruit, train and retain sustainable investment specialists. To take into account that the vast majority of enterprises belong to the category of microenterprises, particular attention will be paid to the role of business accelerators and incubators, angel investor networks and business schools; o by using risk-sharing mechanisms (such as guarantees and political risk hedging) to reduce specific risks such as foreign exchange or liquidity risk, we will enhance the attractiveness of the African private equity asset class to attract more private capital, both nationally and internationally. Mobilizing private financing flows will also require a deepening of secondary markets for equity investments in African private equity funds; o developing cross-listings on regional and pan-African markets to increase the overall funds available for investment and to accelerate legal, regulatory and institutional reforms aimed at harmonizing the different markets, to improve liquidity and stability. - We support further innovative measures, to be further discussed in more depth within the governance bodies of each of the institutions concerned, to address the specific challenges faced by African MSMEs, such as: o the proposal presented by the IFC, with the support of the IDA Private Sector Window, ebrd, EIB and Proparco, to improve MSMEs' access to finance in Africa through innovative structures and risk mitigation instruments, to stimulate lending to this sector. This initiative will explore new avenues of financing for MSMEs and developing markets, from a MSME-specific perspective, including through funds and digital platforms, while using risk mitigation instruments. It could also target MSMEs in agri-food value chains and mid-caps, sectors that drive growth, jobs and sustainable development in Africa; o the efforts of the IFC and the EBRD to support trade in essential goods, equipment and products with Africa during the economic recovery phase of the Covid-19 crisis; o AFAWA, the pan-African initiative supported by the AfDB, and other women's initiatives such as SheInvest and the 2X Challenge, which offer financing for women, to overcome the difficulties of access to finance faced by women in Africa; o increased focus on MSMEs to provide access to digital platforms, such as the AfDB's Facility for Digital Financial Inclusion in Africa (ADFI), recognizing that supporting financial integration and facilitating access to services Financial are essential for MSMEs and the informal sector. We also encourage the deepening of cooperation between African and non-African private companies, including through investment platforms such as the African Investment Forum (AIF) and the development of joint ventures or joint participations in public procurement. We call for more investment to support value chains and SMEs in partnership with our business associations. We will make efforts to develop and finance quality and sustainable infrastructure in Africa while respecting the particular situation of countries and in accordance with the laws and regulations in force locally, by: - strengthening the macro-financial environment and the reliability of the legal and institutional frameworks of public policies in terms of openness and transparency of procurement, economic efficiency in terms of life-cycle cost, level playing field in procurement, fight against corruption, risk perception, budget transparency, sustainability and debt management; - working further on the mobilisation of multilateral and bilateral financial instruments and products, including guarantees, political risk hedging, risk-sharing instruments and other forms of support for public-private partnership projects, as well as in the mobilisation of commercial financing; o We call on multilateral financial institutions to increase their financing of public investments in the digital sector, while taking due account of cybersecurity and privacy issues. We also call on them to use various instruments, including partial risk guarantees and political risk hedging, where appropriate, to encourage foreign direct investment in this sector. Achieving digital transformation in Africa requires universal access through a sustained effort of reforms and investments in infrastructure, digital skills and platforms, as well as financial services. The World Bank estimates that the cost of these investments could reach $80 billion to $100 billion over the next 10 years, divided equally between the public and private sectors. o We call on multilateral organizations to increase funding for renewable energy projects in Africa. In addition, given the key role that the private sector can play in achieving universal access, we call on private sector actors to make use of all available instruments, including partial risk guarantees and political risk hedging, where appropriate, to encourage private investment in Africa's energy sector. To achieve universal access to electricity in Africa, about $200 billion in investment is needed by 2030, or about $20 billion per year. Not all of these investments are the responsibility of States, as the generation and distribution of electricity is increasingly provided by the private sector. For their part, States must invest in transmission lines and put in place the legal and regulatory frameworks that will support private investment. Better coverage of political risk can reassure investors to invest in public-private partnerships in Africa. In addition, regional integration would help achieve universal access by allowing overproduction countries to export electricity to their neighbours. - increasing the amount of investment in infrastructure, including through dedicated national funds, while improving investments in sustainable and quality infrastructure, including through the voluntary commitment of African States to assess the quality and sustainability of their infrastructure projects, among others through the African Union Development Agency (AUDA-NEPAD) and the Infrastructure Consortium for Africa, with the political support of the African Union and the technical support of the AfDB, the IMF, the World Bank and the OECD. This voluntary and non-binding assessment will be based on internationally agreed principles such as the G20 Principles for Quality Infrastructure Investment, in connection with the certification work of the Programme for Infrastructure Development in Africa (PIDA) quality label. In particular, it will aim to ensure "open and transparent procurement so that infrastructure projects are profitable, safe and efficient and that investments are not diverted from their original destination"3; - supporting the development of planning and preparation capacities for key infrastructure projects and promoting the emergence of bankable projects by: promoting the deployment of the SOURCE multilateral platform for the preparation of sustainable infrastructure projects, jointly directed and financed by the MDBs, or other comparable instruments; support for facilities for the preparation and financing of quality infrastructure projects in Africa, including African-led initiatives such as Africa50; Strengthening the community of African infrastructure professionals, including the African Infrastructure Knowledge and Training Platform (AILEAP), led by AUDA-NEPAD, the African Centre for Economic Transformation (ACET) and the OECD. 3 Principle 6.1 of the G20 Principles for Investment in Quality Infrastructure.

Sommet sur le financement des économie africaines Paris – 18 May 2021

List of summit participants who adopted the declaration Countries: Algeria, Angola, Belgium, Benin, Burkina Faso, Cameroon, Canada, China, Comoros, Congo, DR Congo, Côte d'Ivoire, Egypt, Ethiopia, South Africa, Spain, France, United Arab Emirates, Ghana, Italy, Japan, Kenya, United Arab Emirates, Mali, Mauritania, Mauritius, Morocco, Mozambique, Niger, Netherlands, Nigeria, Portugal, Rwanda, Senegal, Sudan, Tanzania, Togo, Tunisia, United Kingdom, Zambia. As well as the current Chairperson of the African Union, the Chairperson of the African Union Commission, the Chairperson of the European Council and the Chairperson of the European Commission.