Minister of Industry Khaled Hashem asserted Egypt’s commitment to achieving industrial integration with South Africa. He described it as a key factor in enhancing the industrial competitiveness of both countries, keeping pace with Africa’s industrialization drive and making optimal use of available resources and capabilities.
This came during his meeting with South African Minister of Trade, Industry and Competition Mpho Parks Tau and his accompanying delegation to discuss ways of strengthening economic cooperation and achieving industrial integration between the two countries. Minister of Industry Khaled Hashem stated that Egypt is keen on attracting automotive component manufacturers to localize production and benefit from incentives under the National Automotive Industry Development Program (AIDP), in line with the state’s goal of increasing production to 100,000 vehicles annually by 2030.
He added that Egypt is currently negotiating with several major global pharmaceutical manufacturers to bring new investments into the Egyptian market in the production of active pharmaceutical ingredients, contributing to technology transfer, local manufacturing and strengthening national production capabilities.
The minister also noted that the establishment of an Egyptian-South African Business Council would deepen cooperation between the private sectors of both countries and give strong momentum to joint projects. He added that a joint committee could be formed to follow up on agreed projects and remove any obstacles they may face.
The meeting reviewed promising areas of industrial cooperation, particularly in pharmaceuticals, medical supplies and equipment, the automotive industry and its components, as well as logistics zones. For his part, Tau stressed the importance of enhancing cooperation with Egypt in priority industrial sectors, highlighting South Africa’s manufacturing capabilities in pharmaceuticals and automotive industries as among its key productive sectors.
He also emphasized the importance of finalizing discussions on the draft memorandum of understanding on automotive industry development (“Autopact”) between the two countries, which would help unify efforts to boost intra-African trade and attract strategic investments to the continent’s automotive sector.
Both sides agreed on the need to strengthen coordination between Egypt and South Africa to support Africa’s agenda and continental integration, particularly in implementing the African Continental Free Trade Area (AfCFTA) and promoting industrialization and higher value-added production across the continent.