The Central Bank of Egypt (CBE) is set to unveil a groundbreaking initiative aimed at bolstering investment activities across the African continent. Ambassador Abu Bakr Hefny, Deputy Minister of Foreign Affairs and Emigration, announced that the CBE is in the final stages of establishing Africa’s first sovereign investment guarantee agency, which will launch with an initial fund of $50 million.
Strengthening Investor Confidence in Africa
During a regional workshop held in Cairo on Monday, Ambassador Hefny highlighted the agency’s core mission: to provide vital protection for investors and promote investment and export activities within Africa. The workshop was convened to review amendments to the investment agreement of the Common Market for Eastern and Southern Africa (COMESA).
Ambassador Hefny explained that the new agency will play a crucial role in enhancing investor confidence by offering guarantees for investments that comply with international standards. He emphasized that Egyptian enterprises operating in African markets will benefit from this dependable structure, fostering greater trade and economic cooperation throughout the continent.
Promoting Regional Integration and Economic Cooperation
Ambassador Hefny stressed the importance of regional integration and economic collaboration as essential drivers for achieving sustainable development among COMESA member nations. He urged African countries to seize this opportunity to enhance trade, investment, and business partnerships, which could lead to widespread economic prosperity.
Investment as a Catalyst for Economic Growth
In his remarks, Ambassador Hefny underscored the broader significance of investment, noting that it extends far beyond capital movement. He described investment as a cornerstone of economic growth, contributing to job creation, poverty reduction, and innovation across African economies.
Updated COMESA Agreement Reflects Regional Ambitions
Ambassador Hefny also highlighted the updated COMESA Investment Agreement, which embodies the region’s collective ambition to achieve economic stability and growth. He argued that cooperation among member states is key to unlocking new opportunities and strengthening their competitiveness in both regional and global markets.
Responding to Global Challenges Through Economic Alliances
In light of ongoing global challenges—such as post-pandemic recovery, climate change, and geopolitical conflicts—Ambassador Hefny emphasized the need for a robust economic alliance within the region. He concluded by advocating for simplified investment processes, greater transparency, and increased trust among member states. These measures, he noted, will attract more foreign direct investment and foster the development of joint ventures across Africa.
Source: Innovation Village