Egypt and South Africa agreed to strengthen industrial cooperation and explore opportunities for greater economic integration during talks between Egyptian Minister of Industry Khaled Hashem and South African Minister of Trade, Industry and Competition Mpho Parks Tau in Cairo.
The discussions focused on boosting collaboration in key manufacturing sectors, including automotive production, pharmaceuticals, medical supplies and logistics, as the two countries seek to advance industrialization and intra-African trade.
Hashem said Egypt views industrial integration with South Africa as a strategic priority that can enhance the competitiveness of both economies, support Africa's industrial development agenda and maximize the use of available resources and capabilities.
He highlighted Egypt's efforts to attract automotive component manufacturers and localize production under the Automotive Industry Development Program (AIDP), part of a broader government strategy to increase annual vehicle production to 100,000 units by 2030.
The minister added that Egypt is currently in talks with several major international pharmaceutical companies to attract new investments in the production of active pharmaceutical ingredients (APIs), aiming to strengthen local manufacturing, facilitate technology transfer and expand domestic production capacity.
Hashem also proposed the establishment of an Egyptian-South African Business Council to deepen private-sector cooperation and accelerate the implementation of joint investment projects.
He said a joint committee could also be formed to monitor agreed initiatives and address potential obstacles facing investors and businesses in both countries.
The meeting reviewed opportunities for cooperation in pharmaceutical manufacturing, medical equipment, automotive industries and logistics infrastructure, sectors viewed as key drivers of economic growth and industrial development.
In turn, Tau affairmed South Africa's interest in expanding cooperation with Egypt in priority industrial sectors, noting that pharmaceuticals and automotive manufacturing are among South Africa's strongest productive industries.
He also emphasized the importance of finalizing discussions on a proposed memorandum of understanding on automotive industry development, known as the "Autopact," which aims to strengthen collaboration between the two countries and support the growth of Africa's automotive sector.
According to Tau, the agreement could help boost intra-African trade, attract strategic investments and create more integrated regional value chains.
Both sides agreed on the need for closer coordination to advance Africa's industrialization agenda and deepen continental economic integration, particularly through the implementation of the African Continental Free Trade Area (AfCFTA).
The ministers said stronger industrial cooperation between Egypt and South Africa could contribute to higher value-added production, increased investment flows and greater economic resilience across the continent.
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