Boosting trade, investment takes center stage at the Egyptian-Moroccan Investment Forum

More efforts to rebalance trade relations between Egypt and Morocco: Egypt and Morocco agreed to boost investment, facilitate trade flows, and work toward a unified presence in African markets. This came during a meeting between Investment Minister Hassan El Khatib and the Moroccan Secretary of State for Foreign Trade Omar Hajira in Cairo yesterday.

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Both ministers stressed the need to increase trade volumes and rebalance the trade relationship, with El Khatib describing trade and investment as “pillars of the region’s economic future.” Hajira welcomed Egypt’s proposals and formally invited El Khatib to visit Rabat to continue talks. The pair also discussed drafting an MoU to provide an institutional framework for cooperation.

Priority sectors highlighted: El Khatib highlighted the importance of the two nations working together on joint market entry strategies, particularly for the textiles, agriculture, and pharma sectors.

We knew this was coming: Last month, two government sources told us that Egypt is preparing to receive a Moroccan government delegation within weeks to continue talks on resolving a trade imbalance between the two countries.

REFRESHER- This comes following a recent flare-up in trade tensions that spurred on efforts to rebalance the lopsided trade relationship between the two countries in favor of Egypt. In February, Morocco held up some 150 containers of Egyptian goods in Moroccan ports in an attempt to rebalance the two countries' trade relationship.

Hajira was in town for the Egyptian-Moroccan Investment Forum, which was held yesterday in Cairo under the theme “A Promising Economic Partnership,” according to a separate statement. The forum brought together officials and businessmen from both sides and gave them the chance to set the stage for a new phase of cooperation.

Trade between the two countries remains below potential, El Khatib said at the forum, adding that Egypt is committed to removing any obstacles facing Moroccan exporters. Hajira echoed the sentiment, noting that Moroccan exports to Egypt represent just 6% of the USD 1 bn in annual trade volume between the two countries, Asharq Business writes. “Global trade shifts are pushing both countries toward integration rather than competition,” he added.

Morocco eyes USD 100 mn in exports to Egypt in 2025: The Egyptian-Moroccan Business Council is targeting a rise in Cairo-bound Moroccan exports to USD 100 mn this year, council head Nizar Abu Ismail told the news outlet. “Today’s talks focused on Morocco’s request to grow exports to Egypt as much as possible,” said Ismail Abdel Aziz, head of the Egyptian-Moroccan Businessmen’s Association.

Cars are the priority for Rabat: The Moroccan delegation stressed its intent to ramp up vehicle exports to Egypt,” Abdel Aziz said. Morocco — Africa’s top car exporter and Europe’s biggest supplier of internal combustion engine vehicles — now seeks to export 1k cars to Egypt in 2025, he said.

And there are already Rabat-bound Egyptian investments in the works: Three Egyptian factories are currently under construction in Morocco with combined investments of around USD 100 mn, Abdel Aziz said. The projects span furniture, sanitary ware, and modern irrigation systems.

And there’s more where that came from: Egypt could invest an additional USD 400 mn in Morocco in the coming period, with companies eyeing sectors including tourism and food industries, according to Ali Tazi, the Moroccan co-chair of the business council. On the other side, Moroccan companies are looking into potential investments in Egypt’s service, food, and wood manufacturing sectors, drawn by Egypt’s position as a gateway to East Africa and the Middle East, Tazi said.

An Egypt-Morocco logistics link? Economic integration starts with logistics, Federation of Egyptian Chambers of Commerce Chair Ahmed El Wakil said during the forum, revealing plans to launch a direct maritime line between Egypt and Morocco until the reopening of the International Coastal Road.