African leaders and bankers vowed at an economic summit in Egypt on Saturday to push for trade and investments on the continent despite the growing threat of “terrorism” in the region.
More than 1,200 delegates including some heads of state were in talks to sign business agreements during the two-day summit at the Red Sea resort of Sharm el-Sheikh, aimed at attracting private sector investment.
Organizers hope the “Africa 2016, Business for Africa, Egypt and the World” conference can build on a 26-nation free-trade pact signed last year to create a common market on half of the continent.
Photo: EPA
Analysts said that despite an economic growth rate of more than 4 percent, Africa still accounts for about only 2 percent of global trade.
The conference 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.
Al-Sisi said the conference aims to present investment opportunities in Africa and “open a direct channel of communication and cooperation” between African businesspeople and overseas investors.
Organizers are also seeking to turn the spotlight on Egypt’s sluggish economy 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 blow when a Russian airliner broke up in mid-air on Oct. 31, last year, minutes after taking off from Sharm el-Sheikh.
Those attending the summit include the presidents of Sudan, Nigeria, Togo and Gabon, and dozens of African ministers and senior trade and investment officials.
African investors should spearhead growth, which can come from developing the region’s infrastructure, some delegates said.
“When our own people invest, then other investors get convinced,” 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 US$837 million in 2007 to US$12 billion this year.
Officials said a robust railway network could further propel growth.
“Rail will do to Africa what it did to agriculture in Asia and even in America. If you have power and rail, Africa will explode,” African Export-Import Bank president Benedict Oramah said.
However, rising terrorism and falling commodity prices pose challenges to growth.
“The new problem affecting investments is international terrorism ... resources that could be used for development are being diverted to address security issues,” Nigerian President Muhammadu Buhari said.
Nigeria, Africa’s largest economy, is fighting a brutal insurgency launched by Boko Haram in 2009.
Bankers said despite these challenges, the continent remains an investment destination.
“We plan to invest US$12 billion in the energy sector over the next five years ... so that people in Africa can have universal access to electricity,” African Development Bank president Akinwumi Adesina said.
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