Egypt Targets African Industrial Expansion to Boost Regional Trade

Industry Minister Khaled Hashem met with business leaders and financial experts in Cairo this week to discuss a new strategy for Egyptian manufacturing across the continent. The forum, hosted by the American Chamber of Commerce in Egypt and the African Export-Import Bank (Afreximbank), focused on expanding industrial projects beyond Egyptian borders.

Expanding Regional Manufacturing

Hashem announced that Cairo is currently evaluating several industrial projects in African nations. The initiative aims to strengthen regional integration and develop value chains in the pharmaceutical and agro-processing sectors. According to the minister, global supply chain restructuring and technological shifts have created new opportunities for African countries to bolster their industrial capabilities.

Data from Afreximbank’s 2026 African Trade Report indicates that the continent’s gross domestic product grew by 4.5% in 2025. Total merchandise trade reached $1.5 trillion, with intra-African trade accounting for $214 billion of that figure. Egypt contributed approximately $9.3 billion to intra-African commerce, representing 4.4% of the total.

Challenges and Strategic Goals

While the African Continental Free Trade Area (AfCFTA) provides a framework for growth, Hashem noted that trade expansion requires more than tariff reductions. He argued that success depends on improving logistics, securing financing, and enhancing productive capacity. The goal is for African nations to move away from exporting raw materials and toward creating finished goods within the region.

To support these efforts, Egypt’s Ministry of Industry has updated its national strategy. The plan prioritizes five industrial groups, including food processing and pharmaceuticals, to better integrate Egyptian companies into both regional and global supply chains.

Why it matters: This initiative underscores Egypt’s pivot toward economic self-sufficiency and regional leadership. By shifting from an exporter of raw materials to a regional manufacturing hub, Egypt seeks to secure its supply chains and capitalize on the growing internal market within Africa, potentially reducing reliance on external global imports.