The Central Bank of Egypt (CBE) will launch an investment guarantee agency for Africa on Tuesday, with a capital of $50m, the Deputy Minister of Foreign Affairs and Emigration, Ambassador Abu Bakr Hefny, said. The agency will be the first of its kind and aims to encourage and enhance investments and exports within the African continent.
Hefny made the announcement during a regional workshop held in Cairo on Monday to ratify the amended Common Market for Eastern and Southern Africa (COMESA) Investment Agreement.
“This agency will be the first sovereign investment guarantee agency and will work to bolster investor confidence,” Hefny said.
He added that the new agency will implement best international practices and relevant investment guarantees for Egyptian companies operating in Africa, establishing a reliable framework for both sides.
“Regional economic cooperation and integration are essential for creating a conducive environment for sustainable development across COMESA member states,” Hefny said.
He added that it is time to equip the continent with the necessary tools and practices to support trade, investments, and business and that seizing this opportunity would pave the way for a more integrated, flexible and prosperous COMESA. He highlighted that through collaboration, the vision can be transformed into reality, creating a brighter future for future generations.
Hefny also noted that investment is not merely a flow of capital; it is the lifeblood of our economies, creating employment opportunities, mitigating poverty, and driving innovation.
“The amended COMESA Investment Agreement is a testament to the shared vision for achieving economic prosperity and stability in the region,” Hefny said.
He reiterated that cooperation and integration will unlock tremendous potential and elevate the collective standing in regional and global markets, especially in the face of challenges such as economic recovery post-pandemic, climate change, and geopolitical tensions.
Hefny stressed the importance of creating a strong economic bloc capable of simplifying investment procedures, promoting transparency, and fostering a climate of mutual trust among COMESA member states. This, he argued, will enable us to attract foreign direct investment in collaboration with local institutions, thereby facilitating the establishment of joint ventures.
Hefny concluded by stating that the COMESA Investment Agreement embodies the commitment to promoting a competitive investment climate, strengthening cooperation among member states, and addressing obstacles that may hinder progress.
