Abiy Calls on G20 to Strengthen the Compact with Africa Multi-Donor Trust Fund
In a high-stakes appeal from Addis Ababa, Prime Minister Abiy Ahmed urged the G20 to take decisive steps to reinforce the Compact with Africa (CwA) Multi-Donor Trust Fund. The appeal, delivered at a regional forum, underscores a broader push to expand financial guarantees, accelerate debt relief, and advance Africa’s integration agenda. The call arrives as African nations seek broader cooperation with international partners to navigate post-pandemic recovery, climate risk, and structural reforms.
Key asks: guarantees, debt relief, and timely implementation
At the heart of Abiy’s message is the need to expand financial guarantees within the CwA framework. He argues that more robust guarantees will unlock private investment and mobilize concessional capital for infrastructure, energy, and industrial projects across the continent. By reducing the risk profile for lenders and investors, the Multi-Donor Trust Fund could channel greater financing to strategic sectors, accelerating growth and job creation.
The Ethiopian leader also pressed for timely debt relief, noting that many African countries still carry heavy debt burdens that hamper development plans. He highlighted that prompt, well-coordinated relief would free fiscal space for essential services, climate adaptation, and long-term competitiveness. While debt relief is a contentious and complex issue, Abiy framed it as a necessary step toward restoring economic sovereignty and sustaining reform momentum.
Debt relief and guarantees as levers for growth
Analysts say expanding the CwA fund’s guarantees could attract private capital by narrowing risk gaps in infrastructure and transition projects. The fund, designed to de-risk public-private partnerships and cross-border initiatives, becomes more effective when paired with clear policy milestones, predictable macroeconomic environments, and transparent governance. Abiy’s emphasis on these elements signals an intent to align donor resources with measurable outcomes.
Supporters of the plan argue that faster debt relief, combined with improved guarantees, can unlock a virtuous cycle: reduced debt service costs, greater fiscal space for development, and higher investment inflows. In turn, these dynamics could spur regional connectivity—rail, road, and digital infrastructure—that underpins Africa’s vision for continental integration and trade expansion under the African Continental Free Trade Area (AfCFTA).
Advancing African continental integration
Beyond financial instruments, Abiy framed the discussion within the broader objective of deepening Africa’s integration. A stronger Compact with Africa, he suggested, should align with regional value chains, harmonized standards, and faster decision-making to ease cross-border commerce. The invitation to the G20 echoes a long-standing consensus that integration is a driver of resilience—helping economies diversify, reduce vulnerability to shocks, and improve bargaining power on the global stage.
Public policymakers and development partners alike recognize that integration is multifaceted. It requires not just capital and debt relief, but also coherent governance, regulatory alignment, and capacity-building for institutions. The G20’s role, as articulated by Abiy, is to provide not only funding but strategic coordination that accelerates project readiness, accelerates reform, and supports sustainable development paths.
Implications for the G20 and Africa–G20 partnership
The call from Addis Ababa signals a recharged urgency for a concrete, action-oriented partnership with Africa. If the G20 responds with expanded guarantees, a clear debt-relief roadmap, and a commitment to practical steps toward continental integration, the Compact with Africa could become a more robust engine of inclusive growth. For African nations, the outcome hinges on the alignment of donor expectations with reform needs, transparent allocation of resources, and timely implementation of projects that deliver tangible benefits on the ground.
Looking ahead
As the G20 contemplates next steps, observers will watch for measurable milestones: expansion of the Multi-Donor Trust Fund’s guarantee envelope, a concrete debt-relief timetable, and a strategic plan linking CwA activities to AfCFTA objectives. Abiy’s pitch places Africa at the center of the development conversation, urging partners to translate commitments into durable financing, policy coherence, and accelerated integration that can reshape the continent’s growth trajectory.
