Written by: Mohammed Omran
Minister of Industry Khaled Hashem held a meeting with South African Minister of Trade, Industry and Competition Mabo Parks-Taw and his accompanying delegation to discuss ways to enhance economic cooperation and achieve industrial integration between the two countries. The meeting was attended by South African Ambassador to Egypt, Dr. Ahmed Maghawry, Assistant Minister of Industry for International Cooperation, and a number of ministry leaders.
Egypt and South Africa discuss industrial integration
The meeting reviewed the most prominent areas of cooperation available between the two countries, especially industrial cooperation, in the pharmaceutical industries, which include medicines, supplies and medical equipment, the automotive industry and its feeder industries, in addition to cooperation in establishing logistics zones.
Reviewing opportunities for cooperation in the pharmaceutical and automotive industries
At the beginning of the meeting, the minister stressed that Egypt and South Africa have strong relations based on a history of economic cooperation aimed at achieving the common interests of both countries.
He pointed out that the ministry pays great attention to deepening cooperation with South Africa and moving the level of relations to industrial integration, as this is the key to enhancing the industrial competitiveness of the two countries, keeping pace with the industrialization process in the continent, and achieving optimal exploitation of resources and capabilities in the two countries.
Hashem pointed out that the ministry aims to attract automotive component manufacturing companies to encourage them to start manufacturing in Egypt and benefit from the incentives of the National Automotive Industry Development Program, in order to achieve the program’s main goal of increasing production to 100,000 cars annually by 2030.
He pointed out that negotiations are currently underway with a number of the world’s largest pharmaceutical companies to inject investments into the Egyptian market in the manufacture of active pharmaceutical ingredients in order to transfer technology and localize local manufacturing.
The minister said that the formation of the Egyptian-South African Business Council will contribute to deepening cooperation between the Egyptian and South African private sectors and give a boost to projects agreed upon by the governments of the two countries.
He noted the possibility of forming a joint committee between the two ministries, emanating from the council, to follow up on joint projects and ensure that any obstacles that may be encountered are overcome.
Africa's largest car manufacturing country
For his part, South African Minister of Trade, Industry and Competition, Mabo Parks-Taw, reviewed South Africa’s manufacturing capabilities in the pharmaceutical and automotive industries as one of the largest productive sectors, noting that South Africa is the largest manufacturer and exporter of automobiles in Africa.
He pointed out the importance of finalizing negotiations on the draft memorandum of understanding for the development of the automotive industry (Autopack) between the two countries, which, once signed, will contribute to unifying efforts aimed at promoting intra-African trade and attracting strategic investments to the automotive sector in the continent.
The two ministers agreed on the need to strengthen cooperation and coordination between the two countries to advance the African agenda and continental integration, particularly the implementation of the African Continental Free Trade Area (AfCFTA) agreement and the need to encourage manufacturing on the continent.
