Egypt is eying closer cooperation with African nations by pursuing new investment opportunities in them for Egyptian investors. The African continent, rich in human and natural resources, is currently experiencing extensive economic activity and a flow of large investments from numerous countries. Despite this uptick, concerns involving security and financial risks remain, keeping some investors at bay. To assuage such concerns, the Egyptian government plans to establish an investment risk insurance fund to protect those willing to put more money into the continent. 

On Oct. 22, in a meeting with parliament’s African Affairs Committee, Investment and International Cooperation Minister Sahar Nasr highlighted the government’s keenness to engage on the challenges that must be overcome to strengthen relations with other African countries and to boost investment in them. She asserted that a risk insurance fund would stimulate Egyptian investment in Africa, and members of parliament and economists hailed the prospect. 

“It is a new step by the Egyptian government on the path of economic development in order to join the economies of the major countries, which require protection of investors from the risks hindering their investment projects on the African continent,” MP Hesham Magdi, a member of the African Affairs Committee, told Al-Monitor. “The political leadership is keen to cooperate with African countries in all areas, especially given that these countries are rich in natural [resources] potential. Thus there is a need to establish such a fund to stimulate young Egyptian investors to delve deeper into Africa and invest there to guarantee a safe environment for them.”

Magdi added that the fund would cover many of the risks that investors might face, such as natural disasters and security disturbances.