UNIDO brings African and international experience together to advance cluster development and regional competitiveness
CAIRO, 2 September 2026 – Representatives from across Africa and Europe met in Cairo this week to examine how industrial clusters can help small and medium-sized enterprises (SMEs) compete more effectively and access regional markets. Connecting practical cluster experience with regional institutions and international expertise, the workshop aimed to support stronger SME ecosystems, more integrated value chains, and greater opportunities for African enterprises under the African Continental Free Trade Area (AfCFTA).
Convened by the United Nations Industrial Development Organization (UNIDO) on 1–2 September under the EU funded Trade, Industry, Growth and Rapid Market Access (TIGARA) Egypt Project, the workshop brought together government representatives, Regional Economic Communities (RECs), private-sector actors and international experts working on cluster development and industrial competitiveness.
Drawing on UNIDO’s cluster development work through TIGARA in Egypt, the workshop connected practical experience at the country level with a wider regional exchange on issues also central to the Africa Trade Competitiveness and Market Access (ATCMA) Programme, including enterprise competitiveness, stronger value chains and improved market access across Africa.
Industrial clusters - geographic concentrations of interconnected firms and institutions - can help firms benefit from shared services, specialized skills and closer links with institutions and markets. For SMEs, these relationships can improve access to knowledge and technology, strengthen product quality and create opportunities that individual firms may struggle to pursue alone.
In Egypt, UNIDO is applying this approach through four clusters supported by TIGARA, working on governance, product quality, circular economy practices, skills and technology, and access to domestic and international markets.
The Cairo workshop brought this experience, together with UNIDO’s wider expertise in cluster development, into a broader African discussion.
“For UNIDO, cluster development is more than an economic tool. It is a catalyst for creating jobs, strengthening local value chains, empowering women and youth, and building resilient industrial ecosystems that can compete in regional and global markets,” said Ms. Ebe Muschialli, Industrial Development Officer at UNIDO.
Dr. Ahmed Maghawry Diab, Assistant Minister and Head of the Developmental Projects Unit at Egypt’s Ministry of Industry, emphasized that “effective clusters emerge when firms learn from one another, absorb better ideas and practices, and collaborate where shared strength helps them compete globally.”
Representatives of ECOWAS, COMESA, SADC, ECCAS and the Comoros also shared regional priorities and challenges in coordinating industries and value chains across borders. Their contributions placed cluster development within Africa’s wider regional integration agenda, including the potential for cross-border clusters to connect enterprises, institutions and value chains across national boundaries.
But expanded market opportunities alone are not enough: firms also need the capabilities, quality systems, institutional support and value-chain linkages that enable them to compete and trade across borders. These are also areas of focus at the heart of the Africa Trade Competitiveness and Market Access (ATCMA) Programme, through which UNIDO works to strengthen quality infrastructure and standards, SME competitiveness, value chains and market access across Africa.
During the workshop, participants identified practical priorities including closer alignment with industrial policy, stronger engagement of cluster members, greater use of digitalisation, sustainability-oriented regulation and longer-term financing approaches. These recommendations will inform follow-up work on cluster development at national and regional levels supported by UNIDO.
By connecting practical experience from Egypt with regional priorities and international lessons, the Cairo workshop helped build a stronger basis for continued cooperation on cluster development and competitiveness across Africa. UNIDO and the European Union will continue supporting this work through TIGARA, alongside wider efforts including ATCMA to strengthen SMEs, connect value chains and expand opportunities for African enterprises across regional markets.
For more information, please contact: Ebe Muschialli, E.MUSCHIALLI [at] unido.org
