South Africa completes technical plans for automotive and industrial pact with Egypt

Daily News Egypt
5 Min Read

South Africa has completed technical preparations for proposed industrial and automotive cooperation protocols with Egypt, South African Minister of Trade, Industry and Competition Parks Tau said during bilateral talks in Cairo.

The expansive discussions, which included Egyptian Minister of Investment and Foreign Trade Mohamed Farid Saleh and Egypt’s Minister of Industry, focused on transitioning bilateral relations from traditional trade to joint manufacturing, value chain integration, and a proposed investment partnership in the automotive sector between Egypt and the Southern African Customs Union (SACU).

“The focus in the current stage must be on transforming dialogue into practical, implementable projects, especially in the fields of industry, trade, and supply chains,” Tau said, noting that South Africa is prepared to finalize the necessary procedural steps and sign the proposed protocols. He added that Pretoria views cooperation with Egypt as a strategic opportunity to enhance pan-African integration and stands ready to support logistics, trade, and industrial development while facilitating private sector engagement.

Egyptian Minister Mohamed Farid Saleh stated that economic cooperation between Cairo and Pretoria forms a primary pillar for driving economic integration across the continent.

“The future of cooperation between the two countries must be based on genuine African-African cooperation across various sectors, including industry, mining, energy, and trade, to boost growth within the continent,” Saleh said. He added that the objective extends beyond increasing trade volumes to building an integrated investment and trade model.

Saleh emphasized the necessity of accelerating product certification and registration procedures between the two nations. “Establishing a fast track for product certification, especially in the pharmaceutical sector, has become a necessity to enhance trade movement and reduce the time required to enter markets,” Saleh said.

To support these initiatives, Saleh noted that Egypt is currently updating its legislative and customs frameworks governing trade. These reforms include facilitating transit trade and developing logistics distribution centres to solidify Egypt’s position as a regional trade and logistics hub.

During the meetings, both delegations agreed to activate the concept of cumulative rules of origin within the African continent. This mechanism allows production stages to be completed across multiple countries, enabling finished goods to enter regional markets as products of African origin. The two sides discussed implementing this model across several sectors, including engineering, automotive, and manufacturing industries.

Regarding the specific proposal for automotive investment cooperation between Egypt and SACU, the Egyptian delegation affirmed its commitment to advancing the file, while the South African side confirmed its technical readiness to proceed with the protocols.

On pharmaceutical cooperation, both parties underscored the importance of accelerating bilateral registration and certification to boost intra-African pharmaceutical trade. The ministers agreed to launch virtual technical meetings between relevant authorities to explore industrial integration and align regional production with import requirements from various markets.

The two sides also discussed leveraging their ports and special economic zones to improve supply chain efficiency and lower transport costs, noting that the long-term sustainability of shipping lines depends heavily on actual commercial trade volumes.

On the international stage, the delegations stressed the importance of strengthening coordination among African nations within global forums, particularly the World Trade Organization (WTO), to adopt unified positions on shared commercial issues and enhance the continent’s collective negotiating power.

To foster direct private sector engagement, the ministers evaluated a proposal to organize reciprocal trade exhibitions, featuring an Egyptian exhibition in South Africa and a South African exhibition in Egypt. Both parties noted that targeted exhibitions serve as a more effective practical tool for accelerating commercial interaction than traditional trade missions.

The talks concluded with an agreement to maintain continuous coordination and translate the tabled proposals into executive frameworks through technical and institutional channels.

The bilateral meetings were attended by South African Ambassador to Cairo Ntsiki Mashimbi, Director-General of the South African Ministry of Trade, Industry and Competition Simphiwe Hamilton, and Special Advisor to the Minister Thofio Muvhi, alongside officials from the South African ministry and embassy.

The Egyptian delegation comprised leadership figures from the Ministry of Investment and Foreign Trade and its affiliated entities, alongside Maged George, Chairperson of the Egyptian side of the Egypt-South Africa Business Council.

 

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