Prime Minister Mostafa Madbouly told his Japanese counterpart Fumio Kishida on Saturday that the establishment of a Japanese economic zone in the the Suez Canal Economic Zone (SCZone) can serve as a gateway for Japanese products to Africa, and a way to boost economic cooperation between the two countries.
The two premiers discussed various topics to boost economic cooperation between the two countries in a video meeting on the sidelines of Eighth Tokyo International Conference on Development in Africa (TICAD8) that is taking place in Tunisia 27-28 August.
The Japanese premier is attending the conference virtually, while PM Madbouly is attending on behalf of President Abdel-Fattah El-Sisi.
According to a statement by the Egyptian Cabinet, Madbouly called in discussions with the Japanese premier on the Japanese private sector to inject further investments in Egypt in order to benefit from the relevant legislative and structural reforms made to stimulate the business environment and improve investment climate in the country.
Madbouly said the Japanese private sector can benefit from investing in the SCZone as a prominent logistic centre that can provide a gateway for the export of Japanese goods to Africa.
The Egyptian premier reviewed with Kishida other investment opportunities available for Japanese companies in Egypt, including projects in the under-construction New Administrative Capital (NAC), electricity, renewable energy, agricultural industrialisation, water desalination, and technology transfer.
For his part, Kishida said the Japanese government will continue to encourage companies to make investments in Egypt.
The Japanese premier cited the investments of Toyota Tsusho Corporation (TTC) in Egypt as a successful model of Japanese companies operating in Egypt.
Also today, Madbouly met with a delegation of officials from TTC to shed light on promising chances for the company to invest in a new complex for automobile industry in Port Said.
For their part, the Toyota delegation praised the current level of cooperation between the company and Egypt, thanking the Egyptian authorities for eliminating all obstacles facing investments and improving the business climate.
In mid-August, the SCZone signed a memorandum of understanding (MoU) with TTC, a member of the Toyota Group, to execute several projects in infrastructure to achieve carbon neutrality and help the country transition to a green economy.
These include projects in logistics, renewable energy, water, and production of both green and blue hydrogen and ammonia.
Toyota Tsusho is also part of a consortium that includes Egypt’s Orascom Construction and France’s ENGIE, which aims to establish a wind power plant with a capacity of 500 MW in the Gulf of Suez area.
Egypt aims to reduce carbon emissions, promote use of renewable energy sources, and use alternative energy forms including green hydrogen – as part of the country’s National Climate Strategy 2050.
The SCZone plans to localise various industries within the framework of Egypt’s 2030 Strategy, including green fuel industries in Sokhna and East Port Said.
Education, invitations
PM Madbouly also praised Japanese support to Egypt in implementing various important national projects, including the construction of Grand Egyptian Museum (GEM).
The Egyptian premier extended an invitation to his Japanese counterpart to attend the GEM inauguration.
Madbouly also told Kishida that Egypt looks forward for the premier’s participation in the UN Climate Change Conference (COP27) that will be held in Sharm El-Sheikh from 6-18 November.
Exports and bonds
Madbouly expressed Egypt’s keenness to expand the exports of Egyptian agricultural products to Japan during the coming period as part of boosting trade relations between the two countries.
For his part, the Japanese PM affirmed his country’s keenness to boost cooperation with Egypt in all fields.
He also praised ongoing development cooperation with Egypt in the fields of transport and health.
Kishida also commended the recent Egyptian step to issue Egypt’s first Japanese yen-denominated bonds (samurai bonds) worth $500 million.
Trade volume between Egypt and Japan increased in 2021 by 13 percent to reach $1.5 billion.
Moreover, Egyptian exports to Japan also increased in 2021 by 7 percent to reach $327 million.
For his part, the Egyptian premier praised Egyptian-Japanese partnership in the field of education, including the application of Japan’s Tokkatsu basic education system in recently-formed Japanese Schools in the country, as well as the establishment of the Egypt-Japan University of Science and Technology (E-JUST) in Alexandria in 2020.
Madbouly also re-extended Egypt’s condolences to Japan over the death of late former Prime Minister Shinzo Abe, who was assassinated in July, hailing Abe’s huge contributions to strengthening Egyptian-Japanese relations.
