Egypt plans Asia-Africa-Europe logistics hub

Egypt and China have agreed to align Egypt’s Vision 2030 with China’s Belt and Road Initiative as part of plans to develop Egypt into a regional hub for industry, logistics and the digital economy, connecting Asia, Africa and Europe.

“We have agreed to launch the third phase of expansions of the Egyptian-Chinese industrial zone in the Suez Canal Economic Zone, which launches a new phase of business in key sectors such as renewable energy, automobile manufacturing, textiles and chemical fibres,” said Abdel Fattah al-Sisi, President of the Arab Republic of Egypt.

The plan could strengthen Egypt’s role in regional supply chains by using its location around the Suez Canal to connect major production and consumption markets. Greater industrial activity could also create new cargo flows and increase demand for freight, warehousing and other logistics services.

The two countries will launch the third phase of the Egyptian-Chinese industrial zone in the Suez Canal Economic Zone, covering sectors such as automobile manufacturing, textiles and chemical fibres.

They will also explore localising production of electric vehicles, shipbuilding and other industrial products, alongside cooperation in data centres, cloud computing, semiconductors and critical mineral supply chains.

For logistics, the development of manufacturing capacity within the Suez Canal Economic Zone could bring production closer to major trade routes and support the movement of goods between Asia, Africa and Europe.

Egypt and China will also expand their local currency swap agreement to support trade and investment transactions, while continuing discussions aimed at improving access for Egyptian products in the Chinese market.