African leaders urge stronger domestic financing and trade at Egypt summit

African leaders, business executives, bankers and development institutions have called for stronger mobilisation of capital within the continent as they seek to finance Africa’s growth with less reliance on external funding.

The discussions took place during the three-day Alamein Africa Forum in El-Alamein, Egypt. More than 20 heads of state and government representatives attended the gathering alongside private-sector and development actors.

Private sector seen as a major economic driver

Egyptian President Abdel Fattah al-Sisi said Africa’s private sector accounted for more than 70 percent of the continent’s gross domestic product, describing it as a central engine of economic activity.

He also highlighted the limited links between African companies. According to al-Sisi, around 85 percent of African private-sector transactions were conducted with companies outside the continent rather than with businesses in neighbouring African countries.

The forum was presented as a platform for companies to identify opportunities closer to home and develop cross-border partnerships. Its discussions covered the need to improve financing for African growth and strengthen business connections between countries.

Trade increases but remains limited

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.

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

The figures underscored the gap between the continent’s potential for regional commerce and the current level of business conducted among African countries.

Egypt highlights investments across Africa

Egyptian officials estimate the country’s investments in Africa at around $14 billion. One example cited at the forum was Tanzania’s $3 billion Julius Nyerere Hydropower Project.

The summit comes as Egypt seeks to deepen its economic engagement with Africa after a long period of focus on the Middle East and the Mediterranean. China and Gulf powers, particularly the United Arab Emirates, have also expanded their economic and political presence across the continent.

Egypt’s outreach is taking place amid its dispute with Ethiopia over the Grand Ethiopian Renaissance Dam and Nile waters. Ethiopia regards the dam as essential to its economic development, while Egypt argues that its operation should be governed by a binding agreement.

Forum to continue under AU mandate

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

The gathering’s organisers presented the forum as a means of helping African firms find investment and commercial opportunities within the continent while building partnerships across borders.