Upcoming projects, including the Suez Canal expansion, in Egypt, afforded South Africa opportunities to invest in that country, further boosting trade relations between the two States, Small Business Development Deputy Minister Elizabeth Thabethe said at a business meeting hosted by Egypt-based airline EgyptAir, in Johannesburg, on Thursday.
EgyptAir regional GM Ihab Seif stated that South Africa should conduct business with Egypt at a time when the Suez Canal was being expanded, with a second channel to run alongside the existing channel, allowing for a permanent two-way operation along a section of the canal’s 193 km length.
The $8.5-billion project included the construction of a 50 km parallel section of the canal to enable ships to simultaneously travel in two directions and the widening and deepening of several existing sections to a depth of 24 m. The majority of the dredging activities for the canal expansion would be executed with 17 cutter suction dredgers.
Seif stated that the first phase of the project, which included the construction of a new water channel, was completed and added that the new canal would eliminate restrictions on maritime vessels.
He noted that, once the project was complete, it would reduce Egypt’s trade deficit by increasing exports through the creation of a number of cluster industries in the area and through the country increasing its prominence as a transit hub.
Thabethe noted that the Suez Canal was key to attracting more investors to Egypt and South Africa and encouraged South African businesses to take advantage of the available opportunities and the good relationship with Egypt to create projects that both countries could work on together.
“We are advocating intra-African trade and Egypt is on the move. The country is moving toward transformation but it cannot achieve this alone. It needs to trade with other countries as it can offer a lot. As government, we are committed to the relationship with Egypt and invite businesses from Egypt to also take up opportunities in South Africa,” she stated.
Meanwhile, Seif highlighted Egypt’s Cairo Airport City development as another potential investment opportunity for South African firms.
The project was expected to establish Egypt as a major aviation hub in Africa and the Middle East.
The development included the construction of a complete city around the Cairo International Airport, and would include a free trade zone, cargo village, factories, offices, hotels and a hospital.
“The key is to learn to build bridges between humans, cultures and nations. This is the function of an airline. It is not just about the commercial concern. This is a significant task for us and we believe this is how you open the door to the future,” said Seif.