Egypt secures billions of dollars in investment pledges

By Isaac Omoding

Egypt has secured billions of dollars in investment deals and aid pledges during the just concluded three-day Economic Development Conference kicked off on Friday, March 13 with a record turn up of 20 Heads of State and 2,200 delegates and business community.

It was hailed as a show of support for President Abdel Fattah al-Sisi and his fight against jihadists. President Abdel Fatah al-Sisi opened the long-awaited economic conference for development at the Egypt’s Sharm El-Sheikh city in South Sinai.
 
The opening remarks that outlined Egypt’s economic reform plan were given by Egypt’s Prime Minister, Ibrahim Mahlab, the Governor of Central Bank of Egypt, Hisham Ramez, Minister of Planning Ashraf el Araby and Minister of Finance Hany Kadry.

According to Ambassador Mohamed El – Hamzawi, the Minister Plenipotentiary, the Deputy Assistant Minister for Nile Basin Countries Affairs, the 20 heads of state included that of Rwanda, Kuwait, United Arab Emirates, Saudi Arabia, Tanzania’s vice-president, prime ministers of Spain, Ethiopia and Italy; ministers of foreign affairs of the US, Jordan, Sudan, Mali, Algeria, Bahrain, Oman, Malaysia, Brunei, Slovenia, Hungary, France, Congo Brazaville and many more. Uganda was represented by its ambassador in Cairo, Richard Angualia Laus.

Angualia, in a telephone discussion said the conference was meant to display Egypt’s development roadmap for economic recovery, especially, as emerging from the recent revolution of January 25, 2011, that saw the overthrow of Hosni Mubarak and his successor Mohamed Morsi later on July 3, 2013 by the masses.

President Abdel Fattah El Sisi (left) shakes hands with Amb. Mohamed E-Hamzawi at a recent function in Egypt.

El-Hamzawi, said all the major international financial and international institutions that included the International Monetary Fund, World Bank, IFC, COMESA, and Islamic Develop Bank attended. The others were multinational companies such as Pepsi Cola, BP, ABB, Emaar, Balton, Qalaa, Orascom, and Coca Cola. Multiple sessions were held with an overview of both local and private opportunities in Egypt’s investment climate.
 
Ambassadors El-Hamzawi and Angualia said that during the first day, Egypt received pledges for $12.5b in investment from Kuwait, Saudi Arabia, the United Arab Emirates, and Oman and deals worth $53 billion, were signed on the sideline of the Conference on its second day (Saturday, March 14, 2015).  This is a huge global economic forum, with many economic and investment opportunities, said Ambassador El-Hamzawi. The opportunities are in petroleum, housing, communication, trade and industry and tourism.

El-Hamzawi said there was a session on the Suez Canal Development project, where investment opportunities were presented by the Suez Canal Authority Chairman Mohab Mameesh, along with officials and private sector executives. Also, according to Hamzawi, Egypt’s plans to rely on various energy sources and achieve energy security were presented.

Cairo University political science professor Mostafa Kamel al-Sayyed said that, "if it weren't for the political aspect, I think we wouldn't have seen the enthusiasm of several representatives of the Arab and Western states. Even China and Russia are standing by Egypt for the same reason.

US Secretary of State John Kerry, told business people on Friday, March 13, 2015, that Washington was "eager and ready and willing" to help Egypt's economic development. He said Washington would decide "very soon" on freeing up $650 million in military aid frozen during the height of a crackdown on Sisi's Islamist opponents that killed hundreds.

The UK Foreign Secretary Philip Hammond, who  led a British delegation to Sharm el-Sheikh for the ‘Egypt the Future’ conference on Friday, March 13, 2015, said The UK is already the largest foreign investor in Egypt and increasing overseas trade is part of our long-term economic plan to boost growth and jobs. Adding that A strong Egyptian economy, which delivers growth and jobs for all Egyptians, is firmly in the UK’s interest as the foundation for security and democracy in that country.

Reports indicated the Siemens of Germany signed a 4 billion euro ($4.2 billion) agreement for a 4.4 gigawatt power plant and an additional 2 gigawatts in wind power.

The British Petroleum signed a deal of $12 billion in Egyptian gas fields with Russian partner DEA.

US Secretary of State John Kerry called for building a unified Arab force to fight the Islamic State group that has captured territory in Iraq and Syria, and which commands an affiliate in Egypt.

At the same conference, the Egyptian government announced plans to build a new capital to the east of the present one, Cairo. According to Ambassador, El Hamzawi, the Housing Minister, Mostafa Madbouly, said the project would cost $45bn (£30bn) and take five to seven years to complete. This is meant to ease congestion and overpopulation in Cairo over the next 40 years.

The new city is envisaged to contain about 2,000 schools and colleges and more than 600 health care facilities. It is planned to be built over 700 sq km.