Global protectionist policies are creating opportunities for African nations to attract industrial investment by encouraging companies to reshore activities to the continent, Egypt’s Minister of Planning, Economic Development and International Cooperation said on Wednesday.
Speaking at the launch of the Brookings Institution’s “Foresight Africa” report during the World Economic Forum in Davos, Rania Al-Mashat said Africa can leverage its demographic dividend, youth population, and technological potential to advance industrialisation.
“Protectionist policies are creating real opportunities for African countries and enhancing their ability to attract industrial investment,” Al-Mashat said, noting that these shifts encourage the relocation of economic activities to exploit Africa’s large market size and available skills.
The minister stated that intra-African trade remains at low levels, currently ranging between 14% and 17%, which she said does not reflect the scale of opportunities on the continent compared to regions such as the European Union. She called for the issue to be pushed to the forefront of international discussions as a “core and pivotal pillar” for achieving development and job creation.
Al-Mashat highlighted the Suez Canal Economic Zone as the central element of Egypt’s strategy to bolster the African Continental Free Trade Area (AfCFTA) and regional value chains. The zone integrates industrial production with logistics services to facilitate the import of inputs, value addition, and re-export to African markets.
The facility serves as a platform that “turns ‘integration’ into a commercial reality” by reducing time to market and supporting large-scale production, Al-Mashat said. She added that it positions Egypt as a competitive hub for aggregation, processing, and transshipment.
Addressing the role of finance, Al-Mashat praised regional institutions including the African Development Bank and the African Export-Import Bank for providing the financing and guarantees necessary to promote trade. She noted that Egypt’s accession to the Pan-African Payment and Settlement System and its work on AfCFTA rules of origin for the textiles and automotive sectors are key steps in strengthening continental economic ties.
In a separate session titled “The Future of Growth,” Al-Mashat said the Egyptian economy is transitioning from a model heavily reliant on government infrastructure investment toward one based on productivity, economic complexity, and value creation.
“Resilience is no longer a defensive concept, but rather a fundamental requirement for attracting investment and enhancing productivity and competitiveness,” Al-Mashat said. She added that Egypt’s growth trajectory is now measuredby the quality, sustainability, and structure of growth rather than solely by gross domestic product expansion rates.
The sessions included participation from Wamkele Mene, Secretary-General of the AfCFTA; Gita Gopinath, Professor of Economics at Harvard University; and Ricardo Hausmann, Director of Harvard University’s Growth Lab.
