German Finance Minister Wolfgang Schaeuble on Saturday revealed that he had laid out a plan to boost private investment in Africa, adding that narrowing the gap between the rich and the poor is key to avoiding a destructive rise in populism.
“If we do nothing to change this, we can expect a rise in populist parties and demagogues, and a rise in instability around the world, with all its negative effects for sustainable growth,” Schaeuble said during the Global Infrastructure Forum at the Inter-American Development Bank.
“We are seeing it already in some parts of the world,” he added in the speech delivered in Washington.
The German minister is among the officials attending the IMF and World Bank spring meetings this week.
Schaeuble said that his country, which holds the presidency of the G20 group of nations, is pushing a plan to have African nations partner with certain G20 countries and international lenders such as the World Bank to attract outside investors to the continent.
The first stage of the proposal, dubbed “Compact with Africa,” would focus on Rwanda, Senegal, Tunisia, Morocco and Ivory Coast.
The minister noted that reducing the wealth gap between the rich and the poor would create long-term stability and security.
“If we want to ensure long-term stability and security, we have to continue to reduce the gap in wealth between the rich countries and the poor countries of this world, especially on the African continent,” he said.