South Africa, Algeria Strengthen Economic Ties with New Trade Routes and MoU

South Africa and Algeria have agreed to establish new trade routes to improve bilateral trade and expand market access between the two nations. The development follows a high-level meeting between South Africa’s Minister of Trade, Industry and Competition, Parks Tau, and Algerian Minister of Foreign Trade and Export Promotion, Kamal Rezig, held in Algeria over the weekend.

Building on a Framework of Cooperation

The talks focused on the implementation of the Memorandum of Understanding (MoU) on Economic Cooperation, signed in December 2024 during the South Africa–Algeria Bi-National Commission. The MoU lays out a comprehensive framework for cooperation in trade, industrial development, and infrastructure, serving as what Tau described as “an umbrella instrument from which all other bilateral economic agreements on trade and investment-related matters draw their specific individual mandates.”

The ministers also agreed to establish a Joint Trade and Investment Committee, which will provide a formal platform for both countries to meet regularly, exchange information, and identify opportunities for trade and investment facilitation.

Expanding Opportunities Across Key Sectors

Minister Tau highlighted that the partnership reflects South Africa’s broader commitment to continental integration under the African Continental Free Trade Area (AfCFTA), while supporting Algeria’s efforts to expand its industrial base.

Both countries agreed to explore sectoral opportunities, including:

• Oil and Gas: Enhancing cooperation in exploration, refining, and energy infrastructure.

• Automotive Manufacturing: Collaborating on automotive production and supply chains.

• Infrastructure Development: Joint projects in roads, ports, and logistics.

• Pharmaceuticals and Healthcare: Cooperation in medicine production and supply.

• Aviation: Development of air connectivity and related infrastructure.

• Agriculture and Agro-processing: Strengthening food production and value addition.

These sectors were identified as strategic for job creation, innovation, and long-term economic growth.

Boosting Connectivity and Business Collaboration

During the visit, Minister Tau also met with Algeria’s Acting Prime Minister, Sifi Ghrieb, where discussions centred on the creation of a South Africa–Algeria Business Council. The council will act as a vehicle to fast-track trade, encourage private-sector collaboration, and promote joint ventures between companies from both nations.

“The business council will also enhance collaboration and share technical expertise in strategic sectors. We also discussed at length the re-instatement of the South Africa-Algeria air route that will facilitate people-to-people and commercial relations between the two countries,” Tau said.

Restoring the air link is expected to boost tourism, trade, and cultural exchange, while improving logistics for businesses seeking to expand operations across the two regions.

Strengthening Africa’s Continental Integration

The South Africa–Algeria partnership fits into a wider continental strategy to deepen intra-African trade and build resilient economies capable of weathering global disruptions. Both nations view economic collaboration not only as a means of expanding bilateral ties but also as a contribution to the broader vision of a connected, innovation-driven Africa.

By aligning with the objectives of the AfCFTA, the two countries aim to position themselves as hubs of trade and investment in their respective regions—South Africa in Southern Africa, and Algeria in North Africa.

Looking Ahead

The agreements reached mark a significant milestone in relations between the two nations, setting the stage for stronger collaboration in trade, investment, and development. With the MoU providing a clear roadmap, the Joint Trade and Investment Committee and Business Council are expected to translate commitments into tangible outcomes that benefit businesses and citizens alike.

As Tau emphasized, the partnership demonstrates how African countries can pool resources, share expertise, and build regional value chains that support inclusive growth across the continent.