Under the tariff storm | Go to Africa (I): Egypt sees the rise opportunities of refrigeration market
Global trade has been tremendously shaken by the unilateralism of the United States. The minimum tariff rate for all Chinese goods is 145%, and China's tariff rate for American goods has also been raised to 125%.
In today's changing global economic landscape, the Trump administration's tariff policies have triggered different chain reactions from all parties in the global industrial chain. At the same time, it has also allowed countries and business entities in the global trade chain to re-examine their industries and trade structures, so as to find opportunities for industrial transformation and upgrading in the process of responding to the tariff storm, and continuously consolidate their ability to cope with uncertainty.
However, in face of the current situation of intra-inverting and intensifying competition in the industry, "If you don't go overseas, you may be out" has become an industry consensus, and globalization has become the only way for corporate development, and the development of overseas markets has become an inevitable strategic layout for companies. Faced with the heavy tariffs from the US, how should Chinese companies break through the dilemma? Where is the chances to go overseas?
In this regard, RACC has specially write a series of articles on "Go to Africa" to focus on Africa, a potential continent, and help Chinese companies find new opportunities for overseas development in the global change.
Tariff adjustments
creating unique development opportunities for Egypt instead
Egypt's Pyramid Online website reported on April 8 that Dr. Ala Iz, Secretary-General of the Egyptian Chamber of Commerce Federation, recently commented on the latest US tariff policy, saying that Egypt applies a 10% tariff rate to US exports, which is already the lowest level in the international tariff system, so the overall impact is limited.
It is worth noting that Egypt is one of the few countries to be imposed on benchmark tariffs. Analysts pointed out that the policy could prompt more factories to move to Egypt to avoid costing pressures from high tariffs.
In addition, Dr. Ala Iz, Secretary-General of the Egyptian Chamber of Commerce Federation, emphasized in particular that this round of tariff adjustments has created unique development opportunities for Egypt. Investors from countries hit by high tariffs can establish cooperative relations with Egyptian companies and set up production bases in Egypt, so as to take advantage of the QIZ agreement to not only enter the US market, but also radiate to the EU, Arab countries, the Gulf region and many African duty-free markets. At present, the Egyptian Chamber of Commerce is actively building a docking platform to help international manufacturers establish cooperation with Egyptian local production enterprises, and to develop diversified export markets after local production.
China-Africa bilateral trade is booming
Egypt opens up direct RMB investment in full ways
China-Africa trade cooperation is becoming increasingly close. As is early in 2024, China abolished commodity tariffs on 33 African countries, becoming an important destination for African commodity exports. China-Africa trade volume reached US$295 billion last year, more than four times the US-Africa trade volume (about US$70 billion).
In just two decades, China has replaced the United States as Africa's largest trading partner, and this trend is expected to accelerate. At the same time, in recent years, China has also vigorously promoted the transfer and investment of production capacity in the African continent, especially in the light industry, such as clothing, building materials, electronic products, etc., which has gradually become its "post-base" for exports to Europe and the United States. According to RACC, in terms of the HVACR field, globally renowned companies have invested and built factories in Africa and Egypt, such as Unionaire, Midea, Hisense, Haier, and Wanhe Electric.
In addition, in an exclusive interview with Arab Financial Network, Hossam Heiba, CEO of the Egyptian Investment and Free Zones Administration (GAFI), announced a landmark policy - Egypt officially opened the RMB direct investment channel to Chinese investors! This means that in the future, Chinese companies can invest in setting up factories and conduct business in Egypt, and can directly settle in RMB without having to exchange them through US dollars, which greatly reduces exchange rate risks and transaction costs.
The introduction of this policy is a key step for the Egyptian government to reduce its dependence on the US dollar and open up Egyptian finance. It not only marks the entry of China-Egypt economic and trade cooperation into a new era of "local currency settlement", but also provides unprecedented convenience and policy dividends for Chinese companies to deploy the Middle East and African markets.
Egypt's home appliance market is in full swing at home and abroad
Against the backdrop of accelerated reshaping of industrial chains and supply chains, Egypt is becoming a new choice for many home appliance companies to go overseas with its emerging "blue ocean" role as an emerging "blue ocean".
Egypt has a population of over 100 million, the middle class is growing, and the demand for home appliances is becoming increasingly strong. As far as the Egyptian domestic market is concerned, according to Mordor Intelligence, the Egyptian home appliance market size is about US$5.5 billion in 2024 and will reach US$10.61 billion in 2029. In terms of overseas demand, according to data from the Egyptian Engineering Export Commission (EEC), Egypt's engineering industry exports reached US$4.392 billion from January to October 2024, which is a record high, a year-on-year increase of 24.2%, of which household appliance exports increased by 5.1%. It can be seen that Egypt's strong domestic market demand and growing overseas market demand have provided investment and development opportunities for Chinese home appliance companies to invest in Egypt.
Egyptian HVAC-R Expo
Grasping the explosion window of the China-Africa refrigeration market
From May 5 to 7, 2025, the 9th Egypt International HVAC-R Exhibition (HVAC-R) will be grandly held at the Cairo International Convention and Exhibition Center in Egypt. The exhibition is co-organized by the Egyptian Refrigeration Association and Cairo Expo Exhibition Group. It is the largest and most professional international air-conditioning and refrigeration exhibition in Egypt, and is also an important way for global HVAC and air-conditioning and ventilation companies to understand new trends, new technologies and new products in the industry.
★Exhibition time: May 5-7, 2025
Organizer: Egypt Refrigeration Association & Cairo Expo Exhibition Group
Exhibition cycle: Once a year
Exhibition location: Egypt International Exhibition Center- New Cairo
In May 2024, the 8th international Exhibition and Conference for Heating, Ventilation, Air Conditioning, Refrigeration, Thermal Insulation and Energy was successfully held at the Cairo Egypt International Exhibition Center, attracting more than 200 exhibitors from more than 30 countries and regions around the world, including Egypt, China, Turkey, Germany, the United States, India, Japan and other countries. At the same time, it also brings together high-quality buyers from Africa, the Middle East, Pakistan, India, China, Japan, South Korea, Saudi Arabia, the United States and other countries to provide business opportunities for enterprises to develop African and Middle East markets. Among them, well-known companies include: LG, Honeywell, Korra Energi, ENV TECH, SIEMENS, K-FLEX, ROCKAL, GR, IEC, Johnson Control, etc., which have all exhibited in this expo. In addition, RACC Organizing Committee organized more than 40 companies from my country, including Juhua, LionBall, Boer, Dongbei, Anuodan, and Weike to the exhibition, and all achieved satisfactory results and gained a lot of international orders and intended cooperation customers.
Beijing Worlead International Exhibition Group in Egypt HVAC-R Exhibition 2024
In May 2025, the RACC Organizing Committee will continue to serve as the general agent in China designated by the organizer of the 9th Egypt HVAC-R Exhibition, and will be China's largest exhibition group for many years. It will provide high-quality services to Chinese companies participating in the exhibition in Egypt. Welcome to call for consultation.
From May 5-7, 2025, in Cairo Egypt International Exhibition Center, let’s jointly grasp the rising chances to the Middle East and Africa refrigeration market!
Source: RACC EXPO
