Agreements worth LE10B signed in Africa 2019

CAIRO – 23 November 2019: Eleven financial and technical agreements were signed on Saturday between Egypt on one hand, and other states and international institutions on the other hand.

The signing ceremony took place during Africa 2019 forum held on November 22-23 in Egypt’s New Administrative Capital and attended by African heads of states, ministers, and 2,000 investors and development partners.

Two joint investment MoUs were closed with Djibouti and Angola while funding deals were finalized with Kuwait, France, China, EBRD, and EIB. It is worthy to mention that Egyptian investments in Africa stand at $11.3 billion while the value of African investments in Egypt is $3 billion.

The MoU with Angola is aimed at boosting cooperation in the sectors of agriculture, tourism, industry, infrastructure, mining, construction, and health. That is in addition to exchanging expertise not only in the aforementioned realms but also in respect of promoting investment opportunities. The MoU also suggests that both countries can get funding for joint projects from international institutions and development partners. The MoU with Djibouti is about joint economic cooperation and investments.

Three agreements worth $201 million were signed with EBRD to support the national electricity grid.

An agreement worth €45 million was signed with EIB to support SMEs.

A framework agreement with the French Development Agency (AFD) was amended.

The agreement is pertinent to the regulation of the work of the private sector in Egypt.

An agreement worth $82 million was signed with Kuwait Fund for Arab Economic Development to build the 4th horizontal road linking North Sinai with South Sinai.

An agreement worth $50 million was closed to fund the Suez Oil Company (SUCO) in order to improve the efficiency of its energy system and refinery.

Two contracts worth $430 million were signed with Noble Energy to supply energy to the pipeline of the East Mediterranean Gas Company and cooperate with Dolphinus Holdings in the realm of oil products.

A grant worth $42 million was signed with China within a financing program to fund the establishment of a center that assembles and tests satellites, launch Misr-Sat 2 performing remote sensing, develop the first and second phases of distance education and execute the third phase of the program, accomplish the feasibility studies of a vocational training center in SCzone, and supply equipment to the Chinese Technology College in Suez Canal University. The total value of Chinese grants to Egypt until now is $294 million.

Banque Misr and Sarwa Capital issued the first tranche of bonds worth LE4 billion on behalf of the New Urban Communities Authority to develop infrastructure. That tranche is worth LE500 million and was marketed among local and international banks and financial institutions.

The first tranche - worth $100 million - of a $500 million funding was signed by the International Islamic Trade Finance Corporation and Afreximbank to finance imports and exports of African states.

Lekela Power announced the beginning of the execution of West Bakr Wind Energy Farm worth $350 million. The farm has a capacity of 250 megawatts and offers 550 job opportunities. The company has $2 billion worth of investments in Africa and contemplates adding further $600 million over the next 2-3 years. The total capacity of its projects on the continent is 1,300 megawatts.

Africa 2019 is held on November 22-23 in Egypt’s New Administrative Capital and is attendee by African heads of states, ministers, and 2,000 investors and development partners.