Ministry of Foreign Affairs and Immigration launches a comprehensive study on the investment map in Africa
Basant Ahmed
As part of the Ministry of Foreign Affairs and Immigration's interest in the African continent and its contribution to opening new markets for Egyptian products in Africa, supporting the activity of Egyptian companies, and implementing development projects in various African countries, the Egyptian Agency of Partnership for Development (EAPD) has prepared a comprehensive study, the first of its kind, entitled "The Investment Map of the African Continent," which aims to inform the private sector and Egyptian businessmen of investment opportunities.
The study includes basic information on various African countries and the laws regulating investment therein, as well as the national institutions and bodies responsible for investment, thus contributing to supporting the private sector and Egyptian businessmen interested in investing in Africa.
The Ministry of Foreign Affairs and Immigration coordinates with various relevant national authorities to enhance the role of the Egyptian private sector, taking advantage of promising investment opportunities in various African markets, contributing to supporting African development aspirations and strengthening Egyptian-African relations.
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Al-Ahram Weekly
30 minutes ago
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Securing power - Economy - Al-Ahram Weekly
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On Sunday, the first working day in the local bourse and banking sector since Israel's attacks on Iran, fears of pessimistic scenarios weighed on transactions in the local currency as well as on the Egyptian Stock Exchange (EGX). The EGX lost LE94 billion of its market capitalisation, with all the indices ending in the red. The exchange price of the Egyptian pound dipped from under LE50 per dollar to cross the LE51 per dollar threshold before settling back at around LE50.2 on Monday. Foreign investors abandoning Egyptian equities and the currency for safer havens is the reason behind the drop. 'If the conflict continues, the world will witness violent price fluctuations. In a worst-case scenario, which is Iran blocking the vital Hormuz Straits, global markets will suffer a daily loss of some 18 to 20 million barrels of oil per day. Prices could go up to $120 per barrel or more. Some analysts talk about $150 per barrel for benchmark Brent crude,' said Nehad Ismail, an oil expert living in London. Being a net importer of gas due to a decline in national production from the Zohr Gas Field and an increase in the demand for power during the hot summer months, the possibility of such a jump in prices is not easy to live with. Egypt's gas deficit (the difference between production and consumption) amounts to 3.5 billion cubic metres per day, with Israel contributing one billion cubic metres of this. Cairo fills the remaining deficit of approximately 2.5 billion cubic metres through imported liquefied natural gas (LNG) shipments that are converted to a gaseous status and then pumped into the national grid. To cover the demand-supply gap and avoid load-shedding plans with power cuts that last for hours, Egypt has become dependent on Israeli gas being exported through pipelines. However, the two gas fields that cover Egypt's demand, the Chevron-operated Leviathan and the Greek firm Energean's Karish, suspended production a few hours after the beginning of the reciprocal attacks. Soon after the closure, Prime Minister Mustafa Madbouli announced that Egypt has activated emergency plans to prevent electricity cuts. Power stations have ramped up their use of fuel oil to maximum available levels, a Ministry of Petroleum statement said, and some plants are being switched to diesel to help protect the stability of the gas network and avoid load reductions. Moreover, fuel reserves have been doubled compared to last year, said the prime minister, adding that additional supplies are being arranged to support continued electricity production through the summer. Since last year, the government has promised several times that this summer will witness no power cuts, an aim which it has worked hard to reach. Egypt's power needs represent two-thirds of overall gas consumption. Egypt has already taken steps to avoid acute shortages of gas. It has agreed to buy LNG from suppliers including Saudi Aramco, the Trafigura Group, and the Vitol Group over two and a half years. The deals will bring in as many as 290 cargoes of LNG starting next month, all aimed at cutting Egypt's reliance on volatile spot markets. They are priced at a premium to the European gas benchmark, according to a Bloomberg report on Thursday. Egypt has also finalised contracts to lease Floating, Storage, and Regasification units (FSRUs). Madbouli said Egypt has secured three floating gas regasification vessels. According to the State Information Service website, one of these units is being prepared in Ain Sokhna to begin operation by the end of June and another will follow in July. The government is acquiring the plants to handle the hundreds of LNG shipments from a variety of sources and intermediaries that will help alleviate shortages during the difficult months of summer. $3 billion worth of contracts have been signed to import sufficient LNG to see the country through the summer. Paying more for imports means that the country's trade balance will show a deficit, and the budget's deficit will not be at a conservative seven per cent, as the value of energy subsidies, halved in the 2025-26 budget, will increase again. Egypt is committed to ending fuel subsidies by the end of this year under its agreement with the International Monetary Fund. * A version of this article appears in print in the 19 June, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
30 minutes ago
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Capitalising on land - Economy - Al-Ahram Weekly
Egypt is using land as collateral to meet its financing needs In a much-publicised move, 174 km² of land in Ras Shukeir overlooking the Red Sea was allocated to the Finance Ministry by a presidential decree last week. According to a Ministry of Finance statement, the allocation does not entail selling the land but rather developing it while using a portion as collateral for sovereign sukuk (Islamic Bond) issuance. This will provide financing to meet state budget needs on favourable terms. The land used as collateral will remain under the full ownership of the Egyptian state represented by the Ministry of Finance and certain government-affiliated economic entities, the statement said. The upsides of the scheme are multiple, experts say. Using a tangible asset as collateral enhances investor confidence and potentially secures better issuance terms, economist Mohamed Fouad told Al-Ahram Weekly. Moreover, it will stimulate real estate, tourism, and public services development in the location, generating long-term revenue streams. It aligns with the government's objective to reduce public debt, lower debt-servicing costs, and manage fiscal pressure. According to the ministry's statement, the initiative will replace existing budget-sector debt with joint investments and reduce debt burdens and servicing costs. Earlier this year, the minister of finance said external debt repayments in 2025 stood at $16 billion. Egypt's foreign debt stood at around $155 billion in December 2024. Mohamed Hafez, a consultant and geoeconomics researcher at Nottingham Trent University in the UK, said the decision would help Egypt diversify its debt instruments and minimise borrowing costs. The land in question is currently idle but holds significant development potential, which makes the decision a smart move to leverage a prime asset and unlock its value through joint ventures in sectors like tourism, industry, energy, and real estate. 'The proceeds could help reduce debt-servicing costs and fund infrastructure, though the benefits will ultimately depend on whether real development follows or it turns into another fiscal stopgap,' Hafez said. Finance Minister Ahmed Kouchouk said Egypt plans to issue $2 billion in sukuk in 2025 via multiple offerings. It has appointed banks to oversee the issuance, Reuters reported in April. The sum partly addresses the country's external financing gap, Fouad said, adding that Egypt's Gross Financing Needs (GFN) stand at 40 per cent of GDP, the highest globally. Egypt is looking to roll over the maturity of its debt to reduce fiscal strain due to the heavy GFN. This would not be the first time that land has been used to generate revenue to help repay debt. In February 2024, the government concluded the Ras Al-Hekma deal, whereby the Abu Dhabi Sovereign Fund ADQ pumped in $24 billion in investments to develop prime land on the North Coast. Some $11 billion of UAE deposits with the Central Bank of Egypt (CBE) were swapped for investments. Hafez explained that though the arrangements involve asset monetisation for fiscal relief by converting land value into upfront cash, the two deals differ significantly in scope, structure, and implications. The Ras Al-Hekma deal was an equity-for-land deal with an immediate bailout component, whereas the Ras Shukeir plan is a debt instrument that keeps the asset in Egyptian hands, he said. Fouad said using land to resolve the issue of debt was 'a pragmatic, strategic approach' to the issue. Using underutilised assets to finance public obligations reduces the reliance on higher-cost borrowing, he said, explaining that it transforms unutilised state land into productive, revenue-generating infrastructure. The sukuk issuance is also good for book-keeping as the yields paid to investors will not be written down as debt service, but rather operational costs. Nonetheless, he noted that Egypt must avoid becoming a quasi-rentier state that relies on such rent-based sources of finance rather than being a productive economy. On a similar note, Hafez said that given the rapid shifts in the global and regional economic and geopolitical dynamics, as well as rising unpredictability that has undermined development plans in many developing economies, the strategy would be effective in unlocking dormant capital, such as from vast state-owned lands, he said. 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Global fixed-income investors seeking diversification and strong collateralisation are also potential buyers, as well as domestic and regional banks and insurance firms looking for compliant instruments with structured returns. To make the most of this initiative, Fouad recommended maximising land utilisation by structuring the sukuk with clear, revenue-generating development plans such as tourism projects. He also suggested diversifying maturities and currency exposure to enhance resilience and fiscal flexibility. Hafez warned that given the rapidly evolving regional geopolitical environment and its potential to unsettle the financial markets, the government should be prepared for possible under-subscription or high yields and avoid relying solely on optimistic interest rate forecasts. Moreover, success depends not just on raising funds, but also on converting land into sustainable, well-managed cash flows, he said. 'The government speaks of using the proceeds for productive projects, but this will require disciplined execution to ensure sukuk-funded developments drive real economic growth and do not become white-elephant ventures,' he stressed. * A version of this article appears in print in the 19 June, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link:
Middle East
an hour ago
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OPEN// FM meets Turkish businessmen during his visit to Istanbul
CAIRO, June 21 (MENA) - Minister of Foreign Affairs, Emigration and Egyptian Expatriates Badr Abdelatty held a meeting with a group of Turkish businessmen during his visit to Istanbul to attend the Ministerial Meeting of the Organization of Islamic Cooperation (OIC). The meeting was part of efforts to enhance Turkish investments in Egypt. Abdelatty emphasized the importance of continuing to strengthen trade and investment cooperation between Egypt and Turkey, highlighting the significant progress in economic relations between the two countries. He noted that the total trade exchange between the two nations reached nearly $9 billion in 2024, with Turkey becoming an important destination for Egyptian exports, while Egypt is also a key destination for Turkish exports in Africa. He welcomed Turkish investments in Egypt, especially in recent years, which have seen a remarkable increase. He expressed Egypt's desire to further expand Turkish investments. (MENA) Y R E
