South Africa and Egypt Establish Business Council to Boost Economic Ties

South Africa and Egypt have agreed to establish a business council aimed at strengthening economic ties and increasing trade and investment between the two countries. The decision was announced by South African International Relations and Cooperation Minister Naledi Pandor and her Egyptian counterpart, Sameh Shoukry, during the 10th Session of the Joint Commission for Cooperation held recently.

Minister Pandor emphasized the need to "exponentially increase trade and investment between the two nations" and welcomed Egypt's admission into the BRICS group of major emerging economies, stating that it "further enhances the role of the Global South in global matters." The establishment of the Business Council is expected to coordinate and galvanize trade and investment opportunities, with both countries looking to take advantage of the opportunities provided by the African Continental Free Trade Agreement (AfCFTA) to facilitate easier trade and promote mutual benefits.

The leaders of South Africa and Egypt have established a strong working relationship, which has provided impetus to transform their relationship to a strategic level. This development comes as South Africa is expected to overtake Nigeria as the largest economy in Africa in 2023, with Egypt dropping to the second spot. South African President Cyril Ramaphosa noted that the country's position as the largest economy on the continent will attract more investors, but emphasized the need to improve infrastructure and ensure a stable energy supply to maintain this position.

Why this matters: The establishment of the South Africa-Egypt Business Council signifies a significant step towards strengthening economic cooperation between two major African economies. This partnership has the potential to drive increased trade, investment, and job creation, while also promoting regional integration and the role of the Global South in international affairs.

The Joint Commission for Cooperation (JCC) between South Africa and Egypt, now in its 10th session, covers various sectors including trade, investment, agriculture, health, and tourism, aiming to promote sustainable growth and prosperity. Minister Pandor stressed the importance of dialogue, mediation, and negotiation as key elements for peaceful conflict resolution, and highlighted the value of strengthening the relationship between South Africa and Egypt as "indispensable" in tackling global challenges such as escalating conflicts, the situation in Palestine, and climate change.

Key Takeaways

• South Africa and Egypt to establish a business council to boost economic ties.
• Egypt's admission to BRICS group enhances the role of the Global South.
• South Africa set to overtake Nigeria as Africa's largest economy in 2023.
• Partnership aims to drive trade, investment, and job creation in both countries.
• South Africa and Egypt emphasize dialogue and cooperation to address global challenges.