By Ambassador Dr Mohamed Higazy
If the el-Alamein Africa Forum aims to become the “Davos of Africa”, its inaugural edition must launch targeted initiatives that reflect Egypt’s transition from dialogue to implementation. At the forefront is the proposed creation of an Egyptian fund to finance the operations of domestic companies in Africa: a strategic instrument designed to strengthen Egypt’s economic presence across the continent and translate the state’s political direction into concrete projects and investments.
Egyptian diplomacy has successfully reclaimed the nation’s position in Africa over the past decade, deepening ties with continental partners and engaging actively with African Union institutions and regional economic communities. This political success now requires an economic arm capable of converting strong relations into investment, productive projects, job creation and increased intra-African trade.
Egyptian companies have extensive expertise in contracting, energy, roads, electricity, housing, pharmaceuticals, agriculture and telecommunications. Yet, those expanding into African markets continue to face obstacles, including high financing costs, investment risks, difficulty in securing guarantees and a shortage of insurance tools for overseas projects.
A specialised national fund is therefore needed to finance the expansion of Egyptian businesses in Africa. It would offer soft loans, investment guarantees and insurance against political and commercial risks, while also contributing equity to strategic projects that serve the mutual interests of Egypt and African nations.
The founding stakeholders could include the Egyptian government, the Central Bank of Egypt, national banks, the Sovereign Fund of Egypt, and Arab and African financial institutions, alongside opportunities for private-sector participation. This structure would establish the fund as a national financial platform driving Egypt’s economic expansion across the continent.
The fund’s role would extend beyond financing. It would conduct feasibility studies, provide market intelligence on African economies, build partnerships with local governments and institutions, and support small and medium-sized enterprises that have strong potential but lack the financial resources to enter foreign markets.
Priority could be given to projects that generate joint added value, such as infrastructure, renewable energy, agriculture, agro-processing, pharmaceuticals, digital transformation and logistics zones. This approach aligns with the goals of Agenda 2063 and fosters regional economic integration.
The fund could also be linked to a digital platform for African projects, featuring an integrated investment map of available opportunities across various countries. This would allow Egyptian companies to explore investment prospects, connect with local partners and secure financing within a clear institutional framework.
The fund should be viewed not merely as a financial mechanism, but as an instrument of Egypt’s national economic security. Every project executed by an Egyptian firm in Africa, whether a factory, road, power station, hospital or university built by Egyptian hands, solidifies Egypt’s standing, deepens its bonds with the continent’s people and creates long-term shared interests that are difficult to diminish.
Global experience shows that economic influence has become one of the most effective tools in international relations. China relies on investment funds that have enabled its companies to expand worldwide, while many other countries depend on export credit agencies and foreign investment institutions to support their national firms. Egypt can similarly establish an equivalent mechanism tailored to its capabilities, ambitions and regional role.
Launching the fund from el-Alamein during the forum’s first edition would send a clear message: Egypt is offering practical tools for joint development rather than mere slogans, and views the private sector as a primary partner in implementing its African policy.
The fund would serve as the cornerstone of a new era in Egyptian-African relations under the theme “Investment for Development, Partnership for the Future”. It would enhance Egypt’s economic standing across the continent, open unprecedented growth horizons for Egyptian companies, and establish the el-Alamein Forum as a platform for initiatives shaping Africa’s future.
In the next article in the “Towards el-Alamein” series, we will address the “African Barter Fund” initiative, exploring how Africa can expand intra-continental trade independently of foreign currency crises to strengthen continental economic integration.
Dr Mohamed Higazy is a former assistant foreign minister
