Egypt studies industrial projects in Africa to expand regional integration

Egypt is studying the establishment of several industrial projects in African countries as part of efforts to strengthen regional industrial integration, expand intra-African trade and develop pharmaceutical and agro-processing value chains, Minister of Industry Khaled Hashem said.

Speaking at the opening of a forum titled “Scaling Egypt’s Industrial Champions in Pharma and Agribusiness: Trade, Manufacturing and Regional Expansion”, organised by the International Cooperation Committee of the American Chamber of Commerce (AmCham) in Egypt in cooperation with the African Export-Import Bank (Afreximbank), Hashem said Egypt aims to deepen industrial cooperation with African partners and increase the integration of Egyptian industries into regional and global value chains.

The event was attended by Omar Mohanna, chairperson of the American Chamber of Commerce in Egypt; Oluranti Doherty, director of export development at Afreximbank; Ahmed Maghawry, assistant minister of industry for international cooperation; and representatives of leading Egyptian companies, government entities, financial institutions and industrial partners.

Hashem said geopolitical developments, technological transformation and the restructuring of global supply chains are creating new opportunities for Africa to strengthen its industrial capabilities, expand regional trade and attract investment.

According to Afreximbank’s 2026 African Trade Report, Africa’s gross domestic product growth accelerated to 4.5% in 2025, while total merchandise trade reached approximately $1.5trn. Intra-African trade amounted to around $214bn, marking an annual increase of 5.5%.

Egypt accounted for approximately 4.4% of intra-African trade, equivalent to around $9.3bn, Hashem said, noting that the figures highlight the potential to expand manufacturing, increase value addition and develop regional supply chains.

He stressed that the African Continental Free Trade Area (AfCFTA) is a key instrument for unlocking this potential, but expanding intra-African trade requires more than opening markets and reducing tariffs.

It also depends on strengthening productive capacity, developing competitive industries, improving logistics, securing reliable financing and ensuring products meet the needs and standards of African markets.

Africa must move beyond exporting raw materials and importing finished goods towards building integrated continental value chains that retain a greater share of economic value within the region, he added.

Industrial strategy prioritises key sectors

Hashem said the Ministry of Industry has updated its strategy to increase industrial exports, attract investment, deepen local manufacturing and integrate Egyptian industry into regional and global value chains.

The strategy identifies five industrial groups, including seven targeted industries for integration into global supply chains, with food processing and pharmaceuticals among the priority sectors.

The ministry is also seeking to attract investments that bring technology, industrial expertise and higher-value production, while strengthening private-sector partnerships and expanding the role of small and medium-sized enterprises (SMEs).

He said SMEs are essential to industrial integration because they can supply components, production inputs, specialised services and technologies to major manufacturers and cross-border supply chains.

The agro-processing and pharmaceutical sectors offer particularly promising opportunities for cooperation between Egypt and other African countries, given their strategic importance to the continent’s economic transformation, Hashem added.

In agro-processing, the ministry aims to support the development of industrial clusters that add value to agricultural products, expand food manufacturing and encourage investment in cold-chain infrastructure and logistics services.

Partnerships between Egyptian and African companies could help reduce post-harvest losses and retain a greater share of added value within African economies, he said.

African agricultural producers could also cooperate with Egyptian processing, packaging and logistics companies through supply agreements and joint projects to deliver finished products to regional markets, converting agricultural resources into manufacturing activity and generating trade across multiple countries.

Pharmaceuticals offer opportunities for regional value chains

Hashem said pharmaceuticals represent another major opportunity for industrial cooperation, particularly as African countries continue to rely on imported medicines.

Egypt is working to deepen domestic pharmaceutical manufacturing, particularly in active pharmaceutical ingredients (APIs), oncology medicines, insulin and complex biological products, he added.

Integrating Egypt’s industrial capabilities with those of other African countries could strengthen regional pharmaceutical value chains through specialisation in active ingredients, drug formulations, packaging and distribution.

Such cooperation could improve production efficiency, expand access to medicines and support a more integrated and resilient African pharmaceutical industry, Hashem said.

Achieving these objectives will require stronger regulatory cooperation, harmonised standards, simplified trade procedures and improved access to financing for industrial investment.

The ministry is currently studying the establishment of several Egyptian industrial projects in African countries as part of these efforts.

Egypt develops African industrial integration initiative

Hashem also highlighted the first El Alamein-Africa Business Forum, hosted by Egypt earlier this month, which brought together African leaders, financial institutions and private-sector representatives to advance economic cooperation, investment and partnerships in line with the African Union’s Agenda 2063.

The forum emphasised the need to translate investment opportunities into concrete projects, mobilise financing and establish long-term industrial partnerships, he said.

Building on these objectives, the Ministry of Industry is developing an African Industrial Integration Initiative aimed at linking Egypt’s industrial capabilities with the resources and opportunities available in partner countries.

The initiative is based on mutual benefit, equitable partnerships and the development priorities of African countries.

It seeks to encourage joint investment, deepen local manufacturing, increase value addition and stimulate intra-African trade.

Hashem reaffirmed Egypt’s commitment to working with Afreximbank, the AfCFTA Secretariat, African partners and the private sector to strengthen industrial cooperation, facilitate trade and establish mutually beneficial investment partnerships.