The Central Bank of Egypt (CBE) is set to launch Africa’s first sovereign investment guarantee agency, a major milestone aimed at boosting investments and exports across the continent. The announcement was made by Egypt’s Deputy Minister of Foreign Affairs and Emigration, Ambassador Abu Bakr Hefny, during a regional workshop in Cairo to ratify the amended Common Market for Eastern and Southern Africa (COMESA) Investment Agreement.
The new investment guarantee agency will begin with an initial capital of $50 million. This initiative marks a pivotal step toward encouraging intra-African trade and strengthening economic ties within the region, particularly for Egyptian companies operating on the continent. The agency’s formation underscores Egypt’s commitment to supporting regional economic development and addressing key challenges facing African markets.
The establishment of the agency is seen as a vital component of efforts to create a more stable and attractive investment climate in Africa. “This agency will be the first sovereign investment guarantee agency and will work to bolster investor confidence,” Hefny said.
Hefny emphasized that the initiative is a critical part of enhancing regional cooperation and integration within COMESA, a 21-member bloc that spans from Egypt to southern Africa. According to the Deputy Minister, regional economic cooperation is essential for creating a conducive environment for sustainable development, which is central to the long-term growth of African economies.
“Regional economic cooperation and integration are essential for creating a conducive environment for sustainable development across COMESA member states,” Hefny said during the workshop.
Hefny further stressed the importance of equipping the continent with the necessary tools to support trade, investment, and business growth, adding that this opportunity could transform Africa into a more integrated and flexible market, ultimately leading to greater prosperity.
The regional workshop in Cairo also served as a platform for ratifying amendments to the COMESA Investment Agreement. The updated agreement is expected to simplify investment procedures, promote transparency, and build mutual trust among COMESA member states, positioning the bloc as a more attractive destination for foreign direct investment.
“The amended COMESA Investment Agreement is a testament to the shared vision for achieving economic prosperity and stability in the region,” Hefny noted
The launch of the new investment guarantee agency comes at a time when Africa faces a multitude of challenges, ranging from post-pandemic economic recovery to the impacts of climate change and shifting geopolitical landscapes. Hefny stressed the importance of creating a strong, resilient economic bloc capable of navigating these difficulties while promoting sustainable growth.
He reiterated the need for cooperation among COMESA member states to unlock the region’s full potential. By simplifying investment processes and fostering trust between investors and local institutions, the bloc can better attract foreign direct investment and facilitate the creation of joint ventures, a key component of regional economic growth.
The new agency is expected to promote a competitive investment climate, strengthen cooperation between member states, and address obstacles that may hinder the progress of intra-African trade and investment. By doing so, Egypt and its partners within COMESA aim to create a more dynamic and interconnected African economy, better equipped to tackle the challenges of the 21st century.
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