Dec 3, 2019

CAIRO — In cooperation with the Ministry of Foreign Affairs and Ministry of Trade and Industry, the Ministry of Investment and International Cooperation (MIIC) organized the Africa 2019: Investment for Africa Forum, which kicked off Nov. 22 in the new administrative capital east of Cairo. The two-day conference was held in the presence of a number of African heads of state and ministers, in addition to nearly 2,000 people, including representatives of Egyptian development partners, businessmen and investors. The conference aims to promote investment opportunities in Africa and Egypt, and to sign development and investment agreements with development partners, African countries and the private sector.

The MIIC noted in a press statement Nov. 24 that 13 deals worth $3 billion were signed at the conference. The forum made seven recommendations, including to call on international financial institutions and investment funds to finance infrastructure projects such as road networks, ports, airports, railways and energy projects. It also stressed the need that international financial institutions make new packages to fund integration projects in Africa and to carry on with the economic reforms and policies for a better investment environment in order to further direct foreign investments in the continent.

The MIIC said an economic cooperation agreement was signed with China on a $42 million grant to implement development projects that Egypt views as a priority. The Social Fund for Development and the European Investment Bank (EIB) signed an agreement to complement the $50 million community development program agreement. Also, Egyptian Prime Minister Mustafa Madbouly signed three agreements with the European Bank for Reconstruction and Development and another $430 million agreement with Noble Energy in Egypt to pump natural gas via the East Mediterranean Gas Company's pipeline.

Yemen al-Hamaki, a professor of economics at Ain Shams University, told Al-Monitor by phone the discussion at the forum mainly focused on the problems facing most of the investors and on examining future opportunities. In addition, investors were encouraged to voice their opinions on the needs of the investment climate in Egypt.

Hamaki said an investor told a panel discussion that high customs fees are a problem for cross-border trade, in addition to other complications such as the slow procedures necessary to release imports. Based on that, she said, Egyptian trade policy needs to be reconsidered because it is perceived to be a hurdle to investments, and current policies present challenges to infrastructure projects the state is interested in.