The Germans needed a satellite regime in North Africa and could of used the prestige of the Egyptians, who used to be white Indo-Europeans, as a management regime to control the German colonial interests on that continent.

Egypt would of been used to manage the newly enslaved Black African populations and oversee their production and handle the shipping and transport of it around the globe.

Egypt would of also likely been important to Italy for its proximity to future colonies and slave states. Egypt wouldn't be independent, but it would of been one of the few states to survive slavery and eradication for their land and germanisation and European settlement.