G20 Compact with Africa: No Reformers, No Compact: The Zimbabwean Case Study

The G20 Compact with Africa (CwA) offers a framework for macroeconomic, business, and financial reforms to attract foreign direct investment (FDI), but Zimbabwe has failed to engage with it. Despite the alignment between CwA goals and Zimbabwe's Transitional Stabilisation Programme (TSP), the country is hindered by a lack of genuine reform culture, significant multilateral debt arrears, and a preference for bilateral infrastructure funding from China. Furthermore, there is a profound lack of awareness of the CwA among Zimbabwean policymakers and private sector stakeholders.

• The G20 Compact with Africa (CwA) is a three-tiered reform framework focusing on macroeconomics, business, and finance, designed to make African countries more attractive to private investors through a partnership between African governments, G20 members, and international organisations.
• Zimbabwe's economy has experienced a long-term decline characterized by high unemployment (over 70%), shrinking GDP growth (projected 0.9% by the end of 2019), and severe inflation (300% in October 2019).
• Zimbabwe faces a critical infrastructure deficit and a lack of private sector participation due to an unsuitable legal framework, regulatory uncertainties, and the poor performance of inefficient public enterprises.
• Multilateral debt is a primary obstacle to Zimbabwe joining the CwA, as the international organisations that implement the compact are also the country's creditors; multilateral debt is estimated at $8.2 billion, with $2.6 billion in arrears.
• Zimbabwe's 'Look East Policy' has led to a reliance on bilateral funding from China, which accounted for 74% of Zimbabwe's FDI in 2015. This preference for bilateral arrangements over reform-based multilateral frameworks like the CwA acts as a barrier to entry.
• There is a significant gap between the Zimbabwean government's public 'open for business' rhetoric and its actual implementation of reforms, leading international stakeholders and G20 embassies to doubt the government's genuine desire for reform.
• Awareness of the CwA is extremely low in Zimbabwe; it is largely ignored by the current government, and the local private sector is described as being 'completely in the dark' about the initiative.

APA

South African Institute of International Affairs (2020). G20 Compact with Africa: No Reformers, No Compact: The Zimbabwean Case Study. https://saiia.org.za/research/g20-compact-with-africa-no-reformers-no-compact-the-zimbabwean-case-study/

Chicago

South African Institute of International Affairs. G20 Compact with Africa: No Reformers, No Compact: The Zimbabwean Case Study. 2020. https://saiia.org.za/research/g20-compact-with-africa-no-reformers-no-compact-the-zimbabwean-case-study/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=G20 Compact with Africa: No Reformers, No Compact: The Zimbabwean Case Study |date=9 January 2020 |url=https://saiia.org.za/research/g20-compact-with-africa-no-reformers-no-compact-the-zimbabwean-case-study/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020g20, author = {{South African Institute of International Affairs}}, title = {{G20 Compact with Africa: No Reformers, No Compact: The Zimbabwean Case Study}}, institution = {South African Institute of International Affairs}, year = {2020}, month = jan, url = {https://saiia.org.za/research/g20-compact-with-africa-no-reformers-no-compact-the-zimbabwean-case-study/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }