Investment risk protection mechanism under study

The government is studying proposals for a company to safeguard investments in Africa against risk, Minister of State for Foreign Affairs Fayza Abul Naga said.

The state would have a 50 per cent stake in the company, and private enterprise would contribute the remainder, Abul Naga said.

Egyptian businessmen should make the best use of membership of the Common Market for Eastern and Southern Africa (COMESA) in order to boost exports in Africa, she added.

Chairman of the Egyptian Businessmen's Association (EBA), Gamal Al-Nazer referred to Abul Naga's recent tour of Russia and Ukraine, saying that EBA members would do well to promote Egyptian exports to those markets.

The recent decision by the government to de-restrict foreign exchange is likely to signify a new beginning for the nation's economy despite the negative impact on prices in the short term, Abul Naga said, adding that the Egyptian experience is unlikely to differ from that of other countries which had floated.

"The Thai baht, for example, lost 35 per cent of its original value," she said.