The President of Arab Republic of Egypt, Mr. Abdel-Fattah El-Sisi, has told leaders of African countries bugged down by insecurity and political instability to forget Foreign Direct Investments, FDIs.
Addressing the on-going 2022 Annual Meetings of the African Export-Import Bank (Afreximbank), in Cairo, Egypt, yesterday, El-Sisi said no investor would invest in a country with insecurity or political instability.
He said: “If you don’t achieve security and stability no investor will come to your country. If there is no security and stability, there is no hope. If I am not sure of security and stability in one country, I will take my money and go to another country.”
El-Sisi, who spoke with passion for the development of an economically strong Africa, challenged African leaders to be committed to the development of the continent.
He said: “I have a dream for Africa. We all must be honest and committed to working together to change the story of our continent to a prosperous region. We have both human and maternal resources to achieve that goal.
“How can we achieve this goal? We must achieve security and stability to enable our people to realise their aspirations. We have to build infrastructure especially rails, roads and ports to connect African countries.”
President El-Sisi pledged to help build very strong African Development Finance Institutions (DFIs) with the capacity to finance mega infrastructure projects across the region.
Afreximbank to raise $6.5bn capital
The Afreximbank is targeting a capital increase of $6.5 billion in its quest to be financially stronger and play better supportive role in strengthening the African economy.
The President of the bank, Prof. Benedict Oramah, disclosed this in his address at yesterday’s session.
He said: “Due to the General Capital Increase endorsed by the African Union and launched in 2021, new equity raised between September 2021 and June 2022, reached almost $800 million or about $1 billion when adjusted for applicable ‘early bird’ discounts on share price applicable.
“The General Capital Increase targets to raise an amount of $6.5 billion in new equity, of which an amount of $2.6 billion is to be paid-in.
“We are delighted with the progress and thank all shareholders who have supported the exercise. We invite those who are yet to contribute to do so without delay as the challenges of our time require that Afreximbank and other African institutions remain strong.”
According to Prof.Oramah, “the notion that Africa cannot rise again has, once again, been debunked. We stand on the pedestal of the work done here to say that “We can, if we dare.”
$4bn Ukraine crisis Trade Finance programme
The president announced a $4 billion Ukraine Crisis Adjustment Trade Finance Programme for Africa (UKAFPA).
He said: “Mindful that Africa’s problems are for Africans to solve, Afreximbank has once again stepped in with the launch of a $4 Ukraine Crisis Adjustment Trade Finance Programme for Africa (UKAFPA) to help countries to contain the short-term impacts of the crisis.
“Looking ahead, we can no longer accept that after 60 years of independence, Africa remains weak and economically fragmented.”