Eastern Cape eyed as Egypt trade gateway

The Eastern Cape’s ports and special economic zones could play a greater role in expanding trade between South Africa and Egypt through a proposed Cape-to-Cairo trade corridor.

Delivering the keynote address at the Eastern Cape Export Symposium, Trade, Industry and Competition Minister Parks Tau said South Africa was engaging with Egypt about the possible establishment of industrial parks in both countries.

“We will realise the Cape-to-Cairo trade corridor, and it begins here in the Eastern Cape,” Tau said.

Under the proposed arrangement, Egyptian businesses could use the Eastern Cape as a gateway to the South African market, while South African producers could use Egypt as a platform to reach North African markets.

The proposal forms part of South Africa’s efforts to diversify its trade relationships amid growing global uncertainty.

However, Tau warned that exporters would be unable to compete if infrastructure failed, logistics costs remained too high, regulatory processes took too long, or businesses could not access the finance needed to fulfil international orders.

Questions also remained over whether the Eastern Cape was making full use of its freight and industrial assets.

Speaking on the second day of the symposium on August 20, Trade Research Advisory founder and director Martin Cameron highlighted that the province had three commercial ports and two special economic zones.

Access to the sea was critical because most global trade moved by maritime transport, he said. However, port infrastructure alone was insufficient if weak institutions, governance and service delivery prevented cargo from moving efficiently.