The Central Bank of Egypt is on the verge of introducing a landmark initiative that aims to enhance investment activities throughout the African continent. Ambassador Abu Bakr Hefny, the Deputy Minister of Foreign Affairs and Emigration, has announced that the CBE is preparing to establish the first sovereign investment guarantee agency in Africa, with an initial funding of $50 million.
During a regional workshop held in Cairo this past Monday, Ambassador Hefny underscored the purpose of the new entity, which is to reinforce investment and export activities within Africa by providing essential protection for investors. The event was convened to discuss and approve changes to the investment agreement of the Common Market for Eastern and Southern Africa (COMESA).
Ambassador Hefny explained that this pioneering agency will play a pivotal role in enhancing the confidence of investors by offering guarantees on investments that adhere to international standards. He mentioned that the agency will serve as a dependable structure for Egyptian enterprises that are active in African markets, thus promoting increased trade and economic collaboration.
Ambassador Hefny stressed the significance of regional integration and economic cooperation as key drivers for achieving sustainable development among the nations that are part of COMESA. He called upon the countries of Africa to take advantage of this initiative to advance trade, investment, and business partnerships, which could lead to widespread prosperity across the continent.
Additionally, Ambassador Hefny spoke about the broader implications of investment, emphasizing that its impact extends beyond the mere movement of capital. He characterized investment as a cornerstone of economic expansion, highlighting its role in job creation, poverty alleviation, and fostering innovation.
He went on to clarify that the updated COMESA Investment Agreement mirrors the collective aspiration of the region to attain economic stability and growth. Ambassador Hefny contended that collaboration among the member states is essential to unlocking new possibilities and improving their joint competitiveness in both regional and international markets.
In the context of current global challenges, such as recovery from the pandemic, climate change issues, and geopolitical conflicts, Ambassador Hefny underlined the necessity of establishing a robust economic alliance. He concluded by stating that simplifying investment processes, enhancing transparency, and building trust between member states are critical steps that will draw more foreign direct investment and support the formation of joint ventures.
