Egypt and Morocco are taking concrete steps to reset and expand their trade relationship, with both countries agreeing to strengthen investment ties, streamline trade flows, and cooperate on strategies for joint market entry across Africa.

This was announced following 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.

The discussions reflected a shared commitment to addressing the existing trade imbalance, which has long tilted in Egypt’s favor, and building a more equitable and strategic partnership.

During the talks, both ministers stressed the importance of trade and investment as fundamental drivers of regional economic growth.

A memorandum of understanding is expected to be drafted soon to create a framework for institutional cooperation, particularly in sectors such as textiles, agriculture, and pharmaceuticals—industries viewed as high-potential areas for collaboration.

This diplomatic engagement follows recent tensions, including Morocco’s decision earlier this year to hold up 150 containers of Egyptian goods at its ports, a move widely seen as an effort to push for fairer trade terms.

Hajira’s visit also coincided with the Egyptian-Moroccan Investment Forum, held under the theme “A Promising Economic Partnership.” The event brought together government officials and business leaders from both countries to explore opportunities for economic collaboration.

Speaking at the forum, El Khatib noted that trade between Egypt and Morocco remains below its potential and reaffirmed Egypt’s readiness to eliminate any obstacles facing Moroccan exporters.

Hajira pointed out that Moroccan exports currently account for just 6% of the $ 1 billion annual trade volume between the two nations. He emphasized that shifting global trade patterns make regional integration more necessary than ever.

Looking ahead, Morocco is aiming to increase its exports to Egypt to USD 100 million in 2025, with a particular focus on expanding its car shipments. As Africa’s top vehicle exporter and Europe’s largest supplier of internal combustion engine cars, Morocco has set a target of exporting 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—focused on furniture, sanitary ware, and modern irrigation systems—representing a combined investment of around USD 100 million.

The momentum is expected to continue, with Egypt considering an additional USD 400 million in investments across sectors such as tourism and food industries. Moroccan businesses are also exploring opportunities in Egypt’s service, food, and wood manufacturing sectors, drawn by Egypt’s geographic position as a gateway to East Africa and the Middle East.

To support these growing ties, officials announced plans to establish a direct maritime route between the two countries, enhancing logistics and connectivity until the International Coastal Road is reopened—an initiative seen as essential to facilitating long-term economic integration.

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