CAIRO- 5 May 2025: Egypt and Morocco are taking significant steps to revitalize and strengthen their trade relations, with both countries agreeing to enhance investment partnerships, improve trade flows, and collaborate on market entry strategies across the African continent.
In a meeting in Cairo between Egypt's Minister of Investment and Foreign Trade, Hassan El Khatib, and Morocco’s Secretary of State for Foreign Trade, Omar Hajira, both countries expressed their mutual commitment to resolving the trade imbalance, which has historically favored Egypt, and building a more balanced and strategic partnership.
Both ministers emphasized that trade and investment are key drivers of regional economic growth and reiterated their shared vision for fostering economic cooperation.
As part of these efforts, the two nations are expected to soon draft a memorandum of understanding (MoU) that will establish a framework for institutional cooperation, particularly in high-potential sectors such as textiles, agriculture, and pharmaceuticals. These sectors have been identified as key areas where both countries can collaborate to maximize mutual benefits.
This diplomatic engagement comes after recent tensions, including Morocco’s decision to block 150 containers of Egyptian goods earlier this year, a move that was seen as a push to renegotiate trade terms. However, the two countries are now focusing on the future, with Hajira’s visit coinciding with the Egyptian-Moroccan Investment Forum, which provided a platform for both government officials and business leaders to discuss potential areas of economic collaboration.
During the forum, El Khatib acknowledged that trade between Egypt and Morocco is still below its potential and reiterated Egypt’s commitment to addressing any obstacles that Moroccan exporters face. Hajira highlighted that Moroccan exports currently account for just 6% of the $1 billion annual trade volume between the two nations and stressed the importance of regional integration as global trade patterns continue to evolve.
Looking ahead, Morocco aims to boost its exports to Egypt, targeting USD 100 million in 2025, with a strong emphasis on expanding car exports. As Africa’s leading vehicle exporter and Europe’s largest supplier of internal combustion engine cars, Morocco plans to send 1,000 vehicles to Egypt next year. At the same time, Egyptian investments in Morocco are on the rise, with three factories currently under construction, representing a total investment of approximately USD 100 million. These factories focus on furniture, sanitary ware, and modern irrigation systems.
Further growth is anticipated, with Egypt considering an additional USD 400 million in investments, particularly in sectors such as tourism and food industries. Moroccan businesses are also eyeing investment opportunities in Egypt’s services, food, and wood manufacturing sectors, driven by Egypt’s strategic location as a gateway to both East Africa and the Middle East.
To facilitate this expanding relationship, officials have announced plans to launch a direct maritime route between the two countries, improving logistics and connectivity. This initiative is expected to be vital in enhancing long-term economic integration until the International Coastal Road is reopened.
Mon, May. 5, 2025
