New Alamein:Egypt has signed approximately 15 memorandums of understanding (MoUs) with African central banks to enhance financial and banking relations and support economic integration with African nations. This announcement was made by Central Bank of Egypt (CBE) Governor Hassan Abdalla during his keynote address at the 'Africa's New Growth Compact in a Turbulent World' session at the Alamein Africa Business Forum, inaugurated by President Abdel Fattah El Sisi.

According to State Information Service Egypt, the MoUs focus on cooperation in areas such as training, governance, and the exchange of expertise, aiming to bolster institutional capacities within the continent's banking sector. Egyptian banks are also working to increase their presence in African markets by opening credit lines and providing financing facilities, which are expected to boost investment, liquidity, and capital market operations across Africa.

Abdalla emphasized that strengthening banking and financial ties is crucial for increasing capital flow within Africa, as much of the continent's capital currently flows out to developed markets before returning at a higher cost. He proposed that 10% of African banking liquidity be directed toward continental investment and 5% of international reserves be invested in Africa.

The governor also highlighted the importance of developing financial markets and improving access to financing in Africa. He called for better credit ratings for African nations and the establishment of an African credit rating agency to facilitate more efficient financing and investment.

To further enhance intra-African trade, Abdalla advocated for expanding the use of local currencies instead of foreign ones for trade transactions. He also suggested reducing barriers to the movement of goods and people and accelerating cargo clearance and customs procedures.

Abdalla noted the demographic challenge of 12 million young people entering Africa's labor market annually, with only 3 million formal jobs created. He stressed the need for investment in education and skills to harness population growth as an economic driver.

The Alamein Africa Business Forum, held biennially following a decision by the African Union summit, aims to mobilize resources and partnerships to transform Africa's development priorities into actionable projects and outcomes. It seeks to enhance collaboration among governments, businesses, investors, and financial entities.