By Africalivenews
African leaders have called for greater mobilisation of the continent’s own capital to finance development, strengthen trade and reduce dependence on external funding.
The call was made during a three-day business summit in Egypt’s Mediterranean city of El-Alamein, which brought together more than 20 heads of state and government representatives, as well as business executives, bankers and development institutions.
Speaking at the inaugural Alamein Africa Forum, Egyptian President Abdel Fattah al-Sisi said Africa’s private sector remained a major driver of economic activity across the continent but argued that African businesses needed to build stronger connections with markets within Africa.
According to al-Sisi, the private sector accounts for more than 70 percent of Africa’s gross domestic product, making it central to the continent’s economic growth.
However, he noted that a large proportion of business activity involving African companies is still directed outside the continent.
“Around 85 percent of African private-sector transactions are conducted with companies outside the continent,” al-Sisi said.
He said the forum was intended to help African businesses identify opportunities within the continent and establish stronger cross-border partnerships.
The Egyptian president’s comments reflect growing calls for African countries to increase intra-African investment and trade rather than relying heavily on foreign capital to finance development.
The summit brought together policymakers and business leaders to discuss opportunities in areas including infrastructure, trade, agriculture, healthcare, mining, technology and renewable energy.
African Union Commission Chairperson Mahmoud Ali Youssouf said the continent had made progress in increasing trade among its countries but still had considerable room to expand.
He told delegates that intra-African trade reached $220 billion in 2024, representing 14.4 percent of Africa’s total trade.
Trade between African countries grew by 12.4 percent in 2024, recovering from a 5.9 percent contraction recorded the previous year.
Youssouf described the growth as encouraging but stressed that Africa could achieve much more if countries strengthened their economic integration.
“Africa can do much better,” he said.
The forum is expected to become a biennial event under an African Union mandate, providing a regular platform for governments, businesses and financial institutions to explore opportunities for investment and economic cooperation.
The initiative comes as African countries seek to accelerate the implementation of the African Continental Free Trade Area, which aims to create a larger single market for goods and services across the continent.
Supporters of deeper economic integration argue that stronger intra-African trade could help African countries reduce their dependence on external markets, create jobs and build more resilient economies.
The continent possesses significant natural resources, a growing population and an expanding consumer market, but inadequate infrastructure, limited access to finance and trade barriers continue to restrict economic activity between African countries.
The El-Alamein gathering therefore placed particular emphasis on unlocking private capital and encouraging businesses to look beyond traditional investment destinations.
Egypt is seeking to strengthen its economic and political engagement across Africa as it attempts to expand its influence beyond its traditional focus on the Middle East and the Mediterranean.
The country has increasingly sought stronger relationships with African states at a time when China and Gulf countries, particularly the United Arab Emirates, have expanded their economic and political presence across the continent.
Egyptian officials estimate the country’s investments in Africa at around $14 billion.
Among the major Egyptian-backed projects is Tanzania’s $3 billion Julius Nyerere Hydropower Project, which is being developed to increase electricity generation and support economic activity in the East African country.
Egypt’s growing engagement with Africa also has a strategic dimension, particularly in relation to the Nile.
The summit comes amid Egypt’s long-running dispute with Ethiopia over the Grand Ethiopian Renaissance Dam, known as GERD, which Ethiopia built on the Blue Nile.
Cairo has repeatedly expressed concerns about the potential impact of the dam’s operation on Egypt’s access to Nile waters.
Ethiopia, however, maintains that the project is essential to its economic development and electricity generation needs.
The dam was inaugurated last year, but negotiations over its operation and the management of water flows have remained contentious.
Egypt has called for a legally binding agreement governing the operation of the dam, while Ethiopia has maintained that it has the right to use the Nile for its development.
The dispute has become one of the most significant diplomatic issues between the two countries and has broader implications for relations among Nile Basin states.
Against this backdrop, Egypt’s renewed economic engagement with Africa could provide Cairo with an opportunity to deepen relationships with countries across the continent.
For African leaders and businesses, however, the broader focus of the El-Alamein forum is on how the continent can mobilise its own resources to finance development.
The argument is that Africa should not rely excessively on external funding when significant financial resources, investment opportunities and markets already exist within the continent.
Greater cooperation among African businesses could also support the growth of local industries and reduce the cost of importing goods that can be produced within Africa.
The development of infrastructure, technology, renewable energy and modern financial systems will be critical to achieving that goal.
The forum therefore represents an effort to bring governments, investors and businesses together around a common objective: increasing African ownership of the continent’s economic future.
With intra-African trade still accounting for a relatively small share of the continent’s total trade, African leaders believe there is considerable potential for further growth.
The challenge will be turning political commitments into practical investment, stronger trade links and partnerships that deliver tangible benefits for businesses and citizens.
The Alamein Africa Forum is expected to return every two years, providing a platform for stakeholders to assess progress and identify new opportunities.
For Africa to finance more of its own development, leaders will need to address longstanding barriers to investment while creating an environment in which African businesses can expand beyond national borders.
The message from the summit was clear: Africa has capital, resources and markets of its own, but stronger cooperation is needed to unlock their full potential.
