African Leaders Urge Greater Use of Domestic Capital at Egypt Forum

African leaders and business representatives have called for greater use of the continent’s own capital to finance economic growth and reduce dependence on external funding.

The call came at the inaugural Alamein Africa Forum, a three-day gathering held in El-Alamein, Egypt. More than 20 heads of state and government representatives attended alongside business leaders, bankers and development institutions.

Discussions focused on Africa’s underused economic potential, limited business links between neighbouring countries and the need for stronger partnerships across borders.

Private sector central to growth

Egyptian President Abdel Fattah al-Sisi said the private sector accounts for more than 70 percent of Africa’s gross domestic product and remains the continent’s main economic engine.

He also said African businesses are more closely connected to markets outside the continent than to neighbouring countries. According to al-Sisi, around 85 percent of African private-sector transactions are conducted with companies outside Africa.

He said the forum was intended to help African companies find opportunities closer to home and develop cross-border partnerships.

The discussions reflected concerns that capital generated within Africa is not being fully channelled into regional investment and trade. Participants considered the importance of building stronger commercial links among African firms as part of efforts to finance development.

Trade figures show progress but room to grow

Mahmoud Ali Youssouf, chairperson of the African Union Commission, told delegates that intra-African trade reached $220 billion in 2024, representing 14.4 percent of the continent’s total trade.

Trade between African countries grew by 12.4 percent in 2024 after contracting by 5.9 percent in the previous year. Youssouf described the increase as encouraging but said, “Africa can do much better.”

His assessment echoed the forum’s broader focus on removing barriers to regional business and making it easier for companies to operate across African markets. Youssouf said the continent still had significant untapped potential despite the progress recorded.

Egypt expands engagement across Africa

The forum also formed part of Egypt’s broader effort to strengthen its economic and political engagement across Africa after a long focus on the Middle East and the Mediterranean.

Officials estimate Egyptian investments across Africa at around $14 billion. That figure includes Tanzania’s $3 billion Julius Nyerere Hydropower Project.

Egypt is also seeking wider African support in its dispute with Ethiopia over the Grand Ethiopian Renaissance Dam. Ethiopia says the dam is essential to its economic development, while Egypt argues that its operation should be governed by a binding agreement.

The source report also places Egypt’s renewed engagement in a wider contest for influence, noting the expanded economic and political presence of China and Gulf powers, particularly the United Arab Emirates, across the continent.

Forum to meet every two years

The Alamein Africa Forum is to become a biennial event under an African Union mandate. Future editions are expected to address infrastructure, trade, agriculture, healthcare, mining, technology and renewable energy.

The organisers’ stated focus gives the forum a broad platform for connecting governments, financial institutions and private-sector companies around investment and development priorities.