Egypt and Japan formalized 12 agreements and memoranda of understanding, focusing on sectors such as education, renewable energy, industrial development, green economy, tourism, and technology. This initiative is anticipated to significantly enhance bilateral investment and trade relations.
The agreements were finalized during the Egypt-Japan Investment Forum held in Tokyo, which gathered senior officials and business leaders from both nations. Prime Minister Mostafa Madbouly was present at the event, accompanied by key ministers from the Egyptian cabinet and their Japanese counterparts, underscoring the high-level commitment to expanding cooperation.
Among the agreements was a collaboration with Casio aimed at training primary math teachers, a partnership with Sprix to develop math and IT curricula based on the Japanese model, and an agreement with Yamaha to introduce music education, teacher training, and musical instruments in 100 schools, according to a statement from the Egyptian cabinet.
A memorandum of understanding was also established between Egypt’s Ministry of Education and Technical Education and Japan’s Ministry of Education, Culture, Sports, Science, and Technology (MEXT) to develop educational frameworks based on the Tokkatsu model and to enhance technical and vocational education and training.
In the energy sector, the Suez Canal Economic Zone collaborated with Itochu and Orascom on green ammonia bunkering facilities, along with a partnership with the Tokyo government focused on green hydrogen initiatives.
Industrial, tourism and services collaborations
Industrial collaborations included a venture between the Arab Group and Japanese firms for international research and development, design, and quality assurance, as well as a separate agreement with Kageto and Onkyo for manufacturing audio-visual products.
In the tourism and services sector, Waterway Development partnered with the Tokyo Hotels Group for hospitality training, while Titan Capital and Promotours established a collaboration in leisure and entertainment. Toyota Tsusho also signed an investment deal with Egypt’s ministries to localize car production and a memorandum of understanding with the Egypt-Japan University of Science and Technology (E-JUST) to support scholarships.
The statement further noted that these agreements come as Egypt aims to attract more Japanese investments, enhance value-added local manufacturing, and open new export routes to regional markets. The forum occurred on the sidelines of Madbouly’s visit to Japan, where he represented President Abdel-Fattah El-Sisi at the 9th Tokyo International Conference on African Development (TICAD 9) in Yokohama.
TICAD, initiated by Japan in 1993 and co-hosted with the United Nations (UN), World Bank, and African Union, stands as one of the most significant international forums for advancing cooperation with Africa. Originally held every five years, it transitioned to a three-year cycle in 2016. The previous summit took place in Tunisia in 2022, while TICAD 7 was held in Yokohama in 2019, attracting over 10,000 participants, including 42 African leaders.
Read more: Egypt sets sail for renewable future with $9 billion FDI for 8 GW wind projects
Growing trade relationship
Japan and Egypt have maintained amicable and friendly relations for many years. Japan regards Egypt as its primary Arab partner and a crucial player in the Middle East. The hosting of the 2nd Japanese-Arab Dialogue Forum in March 2004 in Alexandria exemplifies this relationship. Although the economic partnership has yet to reach its full potential, recent efforts at both governmental and private levels have begun to strengthen and promote bilateral trade and investments.
Bilateral trade between Japan and Egypt has seen a decline in recent years. While Japan continues to enjoy a trade surplus with Egypt, the overall value of its exports has been recovering toward the levels seen in the 1990s, reaching $787 million in 2004. Conversely, Egyptian exports to Japan have continued to diminish, falling to $59 million in 2004, according to the Embassy of Japan in Egypt.
Major Japanese exports to Egypt include transportation equipment and electronic machinery, while significant Egyptian exports consist of petroleum and petroleum products, as well as cotton and cotton textiles. Despite Egypt’s vigorous efforts to improve its investment climate, foreign direct investment has not experienced significant growth, a situation partially attributed to the ongoing crisis in the Middle East. The total value of Japanese investment from 1974 to 2003 stood at $108.3 million, with the latest development being Nissan’s expansion of operations in Egypt.
In recent years, increased visits at both governmental and private levels have seemingly deepened bilateral relations in economic cooperation. The year 2003 was marked by active official visits between Japan and Egypt. In February, Dr. Youssef Boutros-Ghali, Egypt’s minister for Economy and Foreign Trade, visited Japan to attend the WTO Informal Ministerial Meeting in Tokyo. In June, Mr. Mogi, Japan’s vice-minister of Foreign Affairs, visited Egypt for the same purpose. May saw visits from Mr. Junichiro Koizumi, Japan’s prime minister, and in October, Ms. Yoriko Kawaguchi, Japan’s minister for Foreign Affairs, visited Egypt. On both occasions, it was agreed that bilateral economic relations should be further strengthened.
Key economic visits
In the realm of economic cooperation, Mr. Kawakami, the President of JICA, and Mr. Shinosawa, the Governor of JBIC, visited Egypt in June 2003, followed by Mr. Watanabe, chairman and CEO of JETRO, in June 2004. Regarding private economic cooperation, President Mubarak’s visit to Japan in 1999 led to the re-establishment of the Japan-Egypt Joint Business Council. Since then, the Joint Business Council Meetings have alternated between both countries, involving numerous businessmen. They have agreed to exchange ideas and perspectives to foster bilateral economic cooperation. The 6th meeting of this Business Council was held in Tokyo in April 2005, attended by Dr. Fayza Aboul Naga, Minister for International Cooperation, and Dr. Ziad Baha El-Din.
Mr. Carlos Ghosn visited Egypt in June 2004 and announced Nissan’s plan to expand its activities in Egypt, committing to invest $100 million by 2010. Nissan Egypt began production in early 2005. Additionally, Egyptian consumer electronics company El-Araby, under a technology license from Sharp, commenced operations at its new air conditioning factory in Mubarak Industrial City in Quesna in April 2004.
Egypt stands as one of the world’s most appealing destinations for Japanese tourists, renowned for its ancient civilization relics. In 2004, Egypt welcomed 71,000 Japanese tourists, ranking 25th globally. Egypt Air operates five weekly direct flights between Japan and Egypt, including three Narita-Cairo flights and two Kansai-Cairo flights.
