“Compact for the African Lusophone Countries” is signed

The Africa Investment Forum, organized by the African Development Bank (AfDB) was held from 7 to 9 of November, in Johannesburg, South Africa, and which ALER's Vice-President, Guilherme Collares Pereira, also attended. In the Forum was signed the "Development Finance Compact for the African Lusophone Countries". This agreement aims to accelerate inclusive, sustainable and diversified growth of the private sector in the PALOP countries.

The Compact for the African Lusophone Countries was signed by the AfDB, Portugal, Angola, Cape Verde, Mozambique, and São Tomé and Principe.

The initiative aims to promote 65 private sector projects in the PALOPs, as well as to support potential public-private partnerships valued at more than $ 5 billion. To be supported, the candidate projects must be triangular, besides the host African Lusophone country, the project potentially has to involve at least two more entities of the Compact, e.g. AfDB and Portuguese companies or AfDB and other PALOP companies.

Three tools will be applied in the implementation of the initiative: risk mitigation for the private sector and investments in public-private partnerships; direct financing for investments; and technical assistance to improve private and business sector development.

Teresa Ribeiro, Secretary of State for Foreign Affairs, announced that the Portuguese Government has cautioned 400 million euros of guarantees in the State Budget for 2019 to allocate in projects in the countries involved in the Compact, plus another 20 million euros from SOFID, Portuguese development bank.

The Secretary of State also said that the initiative represents an opportunity for the development of Portuguese-speaking countries and also for Portuguese private companies, as private investment and trade promotion are necessary to foster development in these countries.