Egypt and South Africa Expand Automotive Manufacturing Cooperation With New Components Production Partnership
Egypt and South Africa have taken a significant step toward a shared automotive supply chain, after two industrial firms agreed to a joint venture that will make car components for Egyptian and wider African markets.
Egypt’s ElAraby Group and South Africa’s Malben Engineering sealed the deal in Alamein City on the sidelines of the Africa Automotive Investment Forum, with Investment Minister Mohamed Farid Saleh present. The forum was organised by Afreximbank with the AfCFTA Secretariat.
Malben brings more than five decades of experience in forming metal automotive parts, with strengths in stamping, automated welding and electrocoating. It also has a record of supplying global carmakers, while ElAraby contributes its industrial, engineering and technological capabilities. Together they aim to lift local component output, strengthen supply chains and explore expansion across African markets.
Saleh said partnerships between Egyptian and African businesses offer an important route to closer trade across the continent. The forum also saw the launch of the Egyptian-South African Business Council, a platform to expand bilateral trade. Separately, the Ministry of Industry introduced a national programme encouraging vehicle makers to use more locally produced components.
Momentum continued days later when Industry Minister Khaled Hashem met South African Trade, Industry and Competition Minister Parks Tau. Hashem said Egypt wants to attract vehicle manufacturers and component suppliers to produce for domestic buyers and exports, and has moved to draw investment in tyres and electric vehicle batteries. The ministers also considered joint vehicle and component testing and certification to ease trade, and discussed pharmaceuticals, metals, agro-processing and logistics zones.
In a separate round of talks, Saleh urged both countries to go beyond trade toward joint manufacturing and integrated value chains. Tau said technical preparations were complete for several proposed initiatives, including in the automotive sector. Both sides also signalled readiness to finalise protocols for an investment framework between Egypt and the Southern African Customs Union.
Egypt aims to evolve from an assembly-based industry into a fully integrated manufacturing hub, with metal parts and complete vehicle bodies on its localisation list. South Africa, with its long-established auto sector, looks like a natural partner in that journey.
The two governments agreed to keep coordinating through technical channels, suggesting the ElAraby–Malben venture could be the first of several projects.