South Africa has today, 2 October 2026, elevated its trade and economic relations with Egypt by launching the Joint South Africa – Egypt Business Council on the margins of the Alamein- Africa Business Forum.
Egypt is South Africa’s strategic partner and largest export market in North Africa. It has by far the largest population in the Middle East and North Africa (MENA) region, over 102 million, a GDP of $362 billion, and is one of Africa’s most diversified, large, and dynamic economies. There are solid opportunities for South African companies in the medium-to-long term and a platform for commercial activities in the Middle East and the Horn of Africa.
UNDERSTANDING THE TRADE ENVIRONMENT
Today marks a historical moment for South Africa, Egypt, African Continental Free Trade Area (AfCFTA), African Association of Automotive Manufacturers (AAAM) and AfreximBank. Since the adoption of the Butterfly Strategy and the Industrial Development Strategy, we are seeing the increase of market access opportunities as envisage by our accession to the AfCFTA.
Bilateral Trade between South Africa and Egypt, has increased. According to data received Statistics South Africa, direct bilateral trade increased by 26% from R3.4 billion in 2024 to R4.3 billion in 2025. Secondly South Africa’s exports to Egypt grew by 21% from R1.3 billion in 2024 to R1.6 billion in 2025. Based on direct data, South Africa had a trade deficit with Egypt from 2021 – 2025.
These are positive result making South Africa positioned as Egypt’s 46 export destination and 58th source of imports from the rest of the world in 2025. These numbers were also celebrated by our Egyptian counterparts.
THE AFRICA AUTOMOTIVE INVESTMENT FORUM DEAL
On the 02 of October 2026, the dtic, led by Minister Parks participated in Africa Automotive Investment Forum, held on the margins of the inaugural Alamein Africa Forum in Egypt, under the theme “Unlocking Africa’s Automotive Industry Potential under the AfCFTA.”
The Forum is hosted by His Excellency Dr. Mohamed Farid Saleh, the Minister of Investment and Foreign Trade, Government of Egypt, in collaboration with Afreximbank and AAAM, the continent witnessed the collaboration and partnership in action. Participants of the Forum, observed the signing and launch of the Joint Business Council between South Africa and Egypt.
The outcome of this relationship results in deepening bilateral trade and investment by creating practical commercial partnerships between South African and Egyptian companies, while using both countries as gateways into Southern, North and wider African markets.
Key initiatives of the JBC includes:
- A launch of a Mining and Minerals Partnership, Automotive and New-Energy Mobility Partnership.
- An Agriculture and Agro-processing Corridor, an Engineering and Infrastructure Partnership.
- A Renewable Energy and Green Industrial Platform.
- AN Africa Joint-Venture Investment Fund, as a private-sector investment vehicle targeting companies and projects capable of expanding beyond the two domestic markets.
Collaboration and partnership were echoed as key message of the day. This message was echoed by the following high-level speakers including:
- H.E. Wamkele Mene, Secretary General, AfCFTA Secretariat
- H.E. Eng Khaled Hashem, Minister of Industry, Government of Egypt
- H.E. Dr. Mohamed Farid Saleh, the Minister of Investment and Foreign Trade,
Government of Egypt
- Mrs. Kanayo Awani, Executive Vice-President IAED, Afreximbank
- Mr. Tarek Mosaad, President of the African Association of Automotive Manufacturers (AAAM)
For South Africa, the Forum provided an opportunity to position the country as a key manufacturing and investment anchor within an emerging continental automotive value chain, while strengthening linkages between South African automotive producers, African markets, component manufacturers, logistics networks and sources of capital.
The Forum brought together policymakers, governments, Original Equipment Manufacturers (OEMs), component manufacturers, suppliers, investors, financiers, logistics providers and development partners to identify bankable investment opportunities, strengthen regional automotive production capabilities and advance the development of integrated continental supply chains.
TARGETING THE AUTOMOTIVE SECTOR
The Automotive sector was clear beneficiary of this partnership. We have strategic platform to translate the market-access opportunities and Automotive Rules of Origin established under the AfCFTA into concrete investment, industrial partnerships and integrated regional automotive value chains. Opportunities for South Africa into Egypt.
The three major opportunities for SA exports to Egypt are Rubber; new pneumatic tyres, of a kind used on motor cars (including station wagons and racing cars), Motorcycle parts and accessories (including mopeds), Seats; of a kind used for motor vehicles. As shown in the table below, these three major products represent an import displacement opportunity of between 22.4 million and 44.8 million for South Africa.
A key strategic focus was to explore the development of an integrated automotive corridor linking Cape Town to Cairo, leveraging the AfCFTA to connect Southern, Eastern and Northern African automotive production systems, expand intra-African trade, promote investment and deepen regional value chains.
BILATERAL DISCUSSIONS
Before the start of the Forum, Minister Parks Tau had an opportunity to have bilateral with Mr. Tarek Mossad, President and CEO of Hyundai Motor Company Middle East and Africa and His Excellency and Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade, Government of Egypt. It is important to congratulate Mr Mossad on his appoint as the President of AAMM. This is for the first a person of African descent occupies this strategic position. In June 2026, investment facilitation conversation began. The possibility of the Complete Knocked Down (CKD) investment in South Affrica is now possible, which may result in job creation and economic growth.
CONCLUSION
In conclusion South Africa continues to lead in regional integration that will lead to the increase of intra-Africa Trade with the continent. We part of the AfCFTA roadmap, and the results are yielding results.
MEDIA ENQUIRIES:
Kaamil Alli – Ministerial Spokesperson
Mobile: +27 82 520 6813
WhatsApp: +27 82 520 6813
E-mail: KAlli@thedtic.gov.za
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Bongani Lukhele – Director: Media Relations
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Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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