Egypt unveils $500bn Africa growth plan

Egypt has launched a plan to raise $500 billion for nearly 300 development projects across Africa, as reported by Business Insider Africa on February 16th. 

At an African Union Development Agency meeting, Egypt’s Foreign Affairs Minister Badr Abdelatty presented the proposal, called “Team Africa”, on behalf of President Abdel Fattah Al-Sisi. The plan aims to help close Africa’s large funding gap and support projects linked to the African Union’s long-term plan of Agenda 2063.

The initiative aims to tackle major problems across the continent, including poverty, unemployment, and food and energy shortages. It seeks to bring together African governments, development bodies and private investors to finance projects.

Egypt has chaired the steering committee of the African Union Development Agency, also known as NEPAD, since February 2023. It is now preparing to hand over leadership to Angola’s President João Lourenço.

Under its leadership, Cairo focused on reshaping the agency and increasing funding for key programmes. Abdelatty said NEPAD has now passed the European Union’s institutional assessment, known as the “nine pillars” review, an important step for attracting more international investors.

As a result, the agency’s budget has risen to more than $300 million. An additional $100 million has been secured to strengthen public health systems, boost the digital economy and support farming projects under Africa’s agriculture programme.

Egypt has also proposed setting up a special Development Fund under NEPAD. The aim is to create a more stable way to finance long-term projects instead of relying only on short-term collateral.

Beyond funding, Abdelatty said development must go hand in hand with peace and security. He pointed to efforts to update the African Union’s post-conflict reconstruction framework and deepen cooperation with institutions based in Cairo.

On climate issues, Egypt is hosting a continental centre focused on resilience and adapting to climate change. It has also allocated $100 million in seed funding for Nile Basin countries to support projects related to water, food and energy.

The meeting ended with a recommendation to extend NEPAD’s executive leadership and plans for Egypt to host an African Business Summit later this year to encourage more public and private investment across the continent.

 

Business Insider Africa, Maghrebi