Germany to Put Debt and Aid for Africa at Top of G8 Agenda

Germany pledged yesterday to use its presidency of the Group of Eight leading industrial countries next year to continue to push for a better deal for Africa and promote action on climate change.

Angela Merkel, the chancellor, said Berlin was keen to ensure that the promises of greater debt relief and aid made by rich countries at the Gleneagles summit last year were kept. Officials said Germany would host an Africa conference next year and invite leaders from the continent to attend. The emphasis would be to encourage Africa to improve conditions and increase private investment.

Foreign direct investment to Africa hit a record $31bn (£17bn) in 2005, a rise of 78% from the year before, the UN Conference on Trade and Development said in a report this week. But the bulk of the money was poured into the oil, gas and mining sectors because of rampant commodity prices, resulting in limited gains for the poorest in those countries.

A spokesman for the Treasury said he was pleased that the Germans had gone for a more ambitious agenda than was originally suggested and that next year's G8 would focus on Africa and climate change - the twin themes of Britain's presidency. Poverty campaign groups were also impressed. "The twin emphasis on Africa and the global economy is quite positive," said Olly Buston of Data, the campaign group fronted by Bono.

He said that from the outset Ms Merkel had made the "right noises" about development and that there had also been pressure from grassroots opinion in Germany, particularly the churches. "The G8 made promises at Gleneagles. It is now up to the Germans to do the engineering, to turn the promises into deliverables," he said.

Adrian Lovett, of Oxfam, agreed: "This is a bold and welcome announcement ... By putting Africa and poverty at the heart of the G8 agenda, [Merkel] has shown today that she is willing to listen and lead."

At Gleneagles, the G8 - Britain, Canada, France, Germany, Italy, Japan, Russia and the United States - agreed to write off the debts of 18 of the world's poorest countries and increase aid flows by $50bn a year by 2010. In June, however, Oxfam published a report showing that aid was not rising fast enough to meet that pledge.

"Until rich countries commit to giving long-term, predictable aid, developing countries will not be able to build the free and accessible public health and education systems which we know are the essential building blocks to work their way out of poverty," Mr Lovett said.

Germany said it would seek debate on regulating hedge funds, although officials admitted this was a contentious issue on which there may be little progress. They also indicated that the G8 would not be expanded during Germany's presidency to include China. But it will invite China and four other developing countries - Brazil, India, Mexico and South Africa - to the summit in Heiligendamm next year.