Minister of Trade, Industry and Competition, Parks Tau, also engaged with Algerian Acting Prime Minister, Sifi Ghrieb, where the establishment of a business council was discussed.
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South Africa and Algeria have reached an agreement to establish new trade routes aimed at enhancing bilateral trade and facilitating better market access for goods and services from both nations, and have initiated talks for the reinstatement of the South Africa-Algeria air route.
This development follows a meeting between South Africa’s Minister of Trade, Industry and Competition, Parks Tau, and Algeria’s Minister of Foreign Trade and Export Promotion, Kamal Rezig, during the Intra-African Trade Fair 2025 (IATF2025) on Sunday.
During the discussions, the pair focused on the implementation of the Memorandum of Understanding (MoU) on Economic Cooperation, which was originally signed in December last year during the Bi-National Commission between Algeria and South Africa.
The MoU serves as a comprehensive framework for collaboration in various crucial sectors including trade, industrial growth, and infrastructure development.
“The MoU serves as the umbrella instrument from which all other bilateral economic agreements on trade and investment-related matters draw their specific individual mandates,” Tau said.
“We also proposed the establishment of the Joint Trade and Investment Committee which will act as a platform for the two parties to meet regularly to enable trade and investment facilitation.”
Algeria's economy is heavily dependent on the export of hydrocarbons (oil and natural gas), which dominate its GDP and exports, although the economy is increasingly diversifying into sectors like agriculture, agri-food, textiles, and trade, showing robust growth.
The country aims to reduce its reliance on oil.
Highlighting South Africa's dedication to continental integration, Tau stated that the partnership with Algeria, along with other African nations, was vital for developing a resilient, inclusive, and innovation-driven economy.
“Minister Rezig and I agreed to explore opportunities in each others’ markets to enhance cooperation in oil and gas, automotive, infrastructure development, pharmaceuticals, manufacturing, aviation, agriculture and agro-processing,” he said.
Tau also engaged with Algerian Acting Prime Minister, Sifi Ghrieb, where the establishment of a business council was discussed.
This council is seen as crucial for accelerating trade between the two countries, enhancing collaboration and sharing technical expertise across strategic sectors.
“The business council will also enhance collaboration and share technical expertise in strategic sectors. We also discussed at length the reinstatement of the South Africa-Algeria air route that will facilitate people-to-people and commercial relations between the two countries,” he said.
The topic of a unified air transport market in Africa has been a focal point of discussions at the IATF2025, with the head of the African Continental Free Trade Area (AfCFTA) agreement renewing calls renewed calls for the full implementation of the Single African Air Transport Market.
Currently, the continent has no Pan-African airline that traverses the length and breadth of Africa, making it an elaborate and exorbitant endeavour to travel within the continent.
Wamkele Mene, Secretary General of the AfCFTA Secretariat, on Thursday identified air travel as one of the four challenges that still hinder seamless connectivity across the African continent.
Mene emphasized that trade integration cannot succeed without physical integration, highlighting how the fragmentation of air transport adds unnecessary costs to business operations, slows cargo movement, and limits the benefits of the AfCFTA.
“It should not take longer or cost more to fly from Accra to Algiers than from Accra to London.
“First, integration is not only about trade rules; it is also about connectivity. Too many delegates here today had to transit through Europe to reach Algiers. That must change. We must accelerate the implementation of the Single African Air Transport Market.
“Opening Africa’s skies will lower costs, expand passenger and cargo services, and bring our economies and our people closer together. At the same time, investment in trade corridors, logistics hubs, and digital infrastructure must remain a top priority, so that our agreed rules translate into real opportunities on the ground.”
Meanwhile, Ghrieb in a statement said his meeting with Tau was an opportunity to affirm the distinct strategic nature of the friendly and cooperative relations between Algeria and South Africa, while reviewing ways to strengthen the bilateral partnership in various fields, embodying the shared vision of the two countries' leaders, President Abdelmadjid Tebboune, and President Cyril Ramaphosa, particularly the outcomes of the State Visit he made to Algeria in December 2024.
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