African leaders push for investments at summit
Egypt signs $500 mln facility deal with Afreximbank to ease FX shortage
SHARM EL SHEIKH, Egypt, Feb 20, (Agencies): African leaders and bankers turned out at an economic summit in Egypt on Saturday, vowing to push for trade and investments on the continent despite growing security concerns in the region.
More than 1,200 delegates including some heads of state aim to sign business agreements during the next two days at the Red Sea resort of Sharm el-Sheikh, to attract private sector investments in Africa.
Organisers hope the “Africa 2016” conference can build on a 26-nation free trade pact signed last year to create a common market on half the continent.
Analysts say that despite the continent’s economic growth rate of more than four percent, Africa still accounts for about only two percent of global trade.
The forum was aimed at “pushing forward trade and investment in our continent to strengthen Africa’s place in the world economy,” Egyptian President Abdel Fattah el-Sisi said in his opening remarks at the conference.
“It not only aims to present investment opportunities that Africa offers to the international business community ... but aims to pave the way for active decisions, communication and cooperation.”
Organisers are also seeking to turn the spotlight on Egypt as its economy remains sluggish after years of political turmoil following the ouster of longtime autocrat Hosni Mubarak in early 2011.
Heavily dependent on tourism, Egypt’s economy was dealt a body blow when a Russian airliner broke up mid-air on Oct 31, minutes after taking off from Sharm el-Sheikh.
“Africa 2016 forum is expected to position Egypt as a gateway for foreign investments into African markets,” Omar Ben Yedder, member of the organising committee, told AFP.
Those attending the summit organised by Egypt and the African Union include the presidents of Sudan, Nigeria, Togo, and Gabon, and dozens of ministers and senior officials from Africa involved in trade and investment.
Nigerian President Muhammadu Buhari said that growing security concerns in Africa were absorbing huge resources.
“The new problem affecting investments is international terrorism... lot of resources that could be used for development are being diverted to address security issues,” Buhari said.
Nigeria, Africa’s largest economy, is fighting a brutal insurgency launched by Boko Haram since 2009.
Bankers however say the continent remains a growth story.
“We plan to invest 12 billion dollars in the energy sector over the next five years ... so that people in Africa can have universal access to electricity,” Africa Development Bank president Akinwumi Adesina told AFP.
Africa still has 645 million people without access to electricity, he said, and the only way to address the issue is to widen private sector participation in the energy sector.
The economy is projected to grow at a rate of 4.4 percent this year and five percent in 2017 as against three percent growth expected in developed countries, he said.
“Africa is doing well despite the challenges it is facing,” Adesina said.
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The African Export-Import Bank (Afreximbank) has agreed a $500 million facility with the Central Bank of Egypt (CBE) to help Egyptian importers through a foreign currency crisis.
Egypt, which needs to import much of its food and energy, has struggled to revive its economy since the 2011 uprising drove away its main sources of hard currency, foreign investors and tourists.
The Afreximbank deal, signed on Friday, will provide a trade liquidity facility to Egyptian importers, focusing on imports considered strategic to the Egyptian economy.