African leaders and bankers vowed at an economic summit in Egypt yesterday 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 plan to sign business agreements during the next two days at the Red Sea resort of Sharm El Sheikh, aimed at attracting private sector investment.
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 of the continent.
Analysts say that despite its economic growth rate of more than four%, Africa still accounts for about only two% 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 al-Sisi said in opening remarks.
Sisi said the conference aims to present investment opportunities in Africa and “open a direct channel of communication and cooperation” between African businessmen and overseas investors.
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 in mid-air last October 31, minutes after taking off from Sharm El Sheikh.
All 224 people on board, mostly Russian tourists, were killed when the aircraft blew up over the Sinai Peninsula.
Egypt says it still has no evidence that a bomb downed the plane, although Moscow has acknowledged that a “terrorist attack” caused the disaster.
“Africa 2016 forum is expected to position Egypt as a gateway for foreign investments into African markets,” Omar Ben Yedder, a 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 African ministers and senior trade and investment officials.
Trade officials say African investors should spearhead growth in the continent, which can come from developing the region’s infrastructure.
“Investments in infrastructure will unlock the true potential of Africa,” said Sindiso Ngwenya, head of the Common Market for Eastern and Southern Africa (COMESA). He added that trade and investments within COMESA had surged from $837mn in 2007 to $12bn currently.