Tunisia, Egypt set sight on expanding trade, joint investments across Africa

TUNIS – Tunisia is seeking to elevate its economic relationship with Egypt as both countries pursue a stronger trade and investment partnership aimed at expanding their presence across African markets and unlocking new opportunities for regional growth.

The renewed push reflects a broader effort by Tunis and Cairo to deepen economic integration, strengthen private-sector cooperation and use their strategic geographic positions as gateways to African markets.

Although bilateral trade remains below the ambitions of policymakers in both countries, officials say recent growth highlights significant untapped potential for a more balanced and dynamic partnership encompassing trade, industry, logistics and joint investment projects.

Speaking at a conference in Tunis on Wednesday examining the role of the private sector in promoting inclusive markets and business opportunities across Africa, Mourad Ben Hassine, chief executive of Tunisia's Export Promotion Centre (CEPEX), said trade between the two countries currently stood at around $500 million, with authorities aiming to double that figure in the coming years.

"The volume of Tunisian-Egyptian trade is approximately $500 million and the objective is to double bilateral exchanges," Ben Hassine said.

The conference, organised by the African Centre of Excellence for Inclusive Markets, brought together a high-level Egyptian delegation from the Egyptian Council for International Cooperation to explore opportunities for joint investment and economic collaboration both between the two countries and across the African continent.

The African Centre of Excellence for Inclusive Markets, established in 2020 under the auspices of the African Union, serves as a continental platform for policy innovation, knowledge exchange and partnership development focused on inclusive economic growth.

The discussions followed a meeting on Tuesday between Tunisia's Minister of Trade and Export Development, Samir Abid, and a delegation of Egyptian business leaders. The talks were attended by the centre's chief executive Youssef El-Kordafani and representatives of the Egyptian Embassy in Tunis.

According to Tunisia's Trade Ministry, both sides reviewed ways to strengthen economic ties, expand bilateral trade and enhance cooperation in African markets.

Ben Hassine said the discussions were designed to help Tunisian companies establish direct links with Egyptian counterparts and identify potential partnership opportunities capable of supporting expansion across the continent.

Trade Growing but Below Potential

Recent figures indicate that commercial exchanges between the two countries are gaining momentum. According to CEPEX data, bilateral trade reached nearly $490 million in 2025, compared with $434.5 million in 2024, representing growth of 12.8 percent.

Tunisian exports to Egypt rose particularly strongly, jumping 53.1 percent to $76.5 million.

Despite the increase, the trade balance remains heavily in Egypt's favour, with Tunisia recording a deficit of approximately $337 million.

Tunisia's exports to Egypt are concentrated largely in electrical components and equipment, including wires and cables, as well as chemical products, which together account for nearly 70 percent of total exports. Officials say the limited diversification of exports remains one of the main challenges facing Tunisian businesses seeking to expand their presence in the Egyptian market.

Ben Hassine identified several obstacles that continue to hinder trade growth, including non-tariff barriers, complex registration procedures with Egyptian authorities, the absence of direct maritime links, financial transfer difficulties and the lack of mutual recognition of certain sanitary and technical certificates.

Significant untapped opportunities

Despite these challenges, Tunisian officials believe the potential for expansion remains substantial.

According to CEPEX estimates, unrealised export opportunities to Egypt are worth around $63.5 million. This would raise Tunisia's export potential to approximately $140 million, compared with the current level of $76.5 million.

Industries offering the strongest growth prospects include mechanical and electrical manufacturing, chemicals, pharmaceuticals and higher-value agricultural products such as packaged olive oil, dates and processed food products.

Analysts note that Egypt's vast domestic market, with a population exceeding 120 million people and an economy worth more than $400 billion, offers significant opportunities for Tunisian exporters.

At the same time, Tunisia's smaller but more export-oriented economy, valued at roughly $55 billion, possesses competitive strengths in sectors such as mechanical engineering, electrical manufacturing and textiles, creating opportunities for complementary industrial cooperation rather than direct competition.

Africa at the centre of the strategy

A key element of the emerging partnership is the shared ambition to increase access to African markets.

Ben Hassine noted that trade with African countries currently accounts for only around 16 percent of Tunisia's total external trade, underscoring the need for broader regional engagement.

He argued that stronger Tunisian-Egyptian integration could provide a more effective platform for entering African markets through joint investments, shared logistics networks and coordinated commercial strategies.

Experts believe deeper cooperation between the two countries could strengthen their position within emerging African value chains at a time when governments across the continent are seeking to boost intra-African trade, expand local manufacturing and reduce dependence on imports from outside Africa.

Previous regional cooperation experiences have shown that improvements in transport links, logistics infrastructure and mutual recognition of standards can increase trade flows by between 20 and 40 percent within a relatively short period.

For Tunisia and Egypt, officials say, the challenge now is to translate political goodwill and business interest into practical measures capable of unlocking the full economic potential of one of North Africa's most important bilateral relationships.

As both countries seek new engines of growth amid global economic uncertainty, deeper economic integration may offer a pathway not only to stronger bilateral trade but also to a more influential role in shaping Africa's evolving commercial landscape.