EGYPT AND THE COMESA BLOC - PROSPECTS FOR DEVELOPING ECONOMIC INTEGRATION AND LOGISTICAL CONNECTIVITY

Abstract

Increasing exports is one of the most important objectives of current economic policy, given its crucial role in financing development, increasing production, employment, and growth rates, as well as providing foreign currency and improving the balance of payments. The Common Market for Eastern and Southern Africa (COMESA) is a promising market for Egypt. This study aims to explore the development of foreign trade and logistical connectivity between Egypt and COMESA, using a descriptive and analytical statistical methodology, supported by a survey of 60 traders and experts. This research focuses on the economic impact of COMESA agreements on Egyptian exports and identifies optimal economic trends for these exports, which may benefit policymakers in the Egyptian economy. It employs a descriptive and analytical statistical methodology to identify the logistical challenges and obstacles facing Egyptian exports to COMESA countries. The study revealed a small volume of trade between Egypt and COMESA countries relative to Egypt's total foreign trade, while also showing a positive trend in Egyptian exports to COMESA countries. Their contribution to Egypt's total global exports has increased significantly over the past two decades, resulting in a substantial trade surplus. The research also identifies strategic pillars for strengthening relations, such as industrial expansion and the development of logistics hubs. However, it points to challenges such as the high concentration of Egyptian exports in COMESA markets and weaknesses like the lack of coordinated and sophisticated shipping and logistics systems. Overall, the research indicates that while Egypt has benefited significantly from COMESA, further infrastructure and strategic planning are needed to maximize participation and address identified weaknesses. The paper concludes by identifying the challenges facing the promotion of trade and shipping logistics to COMESA countries and offers recommendations on measures to be considered in international trade logistics activities.