Egypt vigorously promotes the modernization of the textile and garment industry
“Al-Ahram” website recently reported that data from the Industrial Modernization Center (IMC) under the Egyptian Ministry of Trade and Industry showed that the textile and clothing industry accounted for 3% of Egypt’s GDP in 2021, and in Africa Oil exports accounted for 11%. Considering that there are as many as 4,600 textile and garment enterprises in Egypt, with a total investment of 6 billion US dollars and providing 1.5 million jobs, the contribution of this industry to GDP is still not high.
Since 2019, Egypt has implemented modernization reforms in the textile industry, merging 23 state-owned textile companies into 8, and transferring ownership to the state-owned enterprise Egypt Cotton and Textile Industry Holdings The company has invested 23 billion pounds in capital for equipment, plant renewal and employee recruitment. Egypt’s Ministry of Public Enterprises pointed out that from the end of 2022 to 2024, restructured textile factories will be put into production one after another, and existing production capacity will be improved by eliminating old machines and acquiring foreign companies. Egypt will set up a special company to promote yarn and clothing brands, be managed by foreign marketing experts, and encourage farmers to grow high-quality cotton. In February this year, the Egyptian Ministry of Trade and Industry also established a Textile Industry Committee to vigorously promote the development of the textile industry.
Currently, Egypt relies on imports for 55% of its synthetic fibers. Mohammed, chairman of the Textile Industry Department of the Egyptian Federation of Industry, said that as long as the country is willing to increase private sector investment in the industry, companies will definitely increase production capabilities, use local materials and increase the added value of products to increase export revenue. Industry insiders pointed out that the sharp increase in raw material costs has led to insufficient cash liquidity in Egyptian textile and garment enterprises, and increased costs have reduced export competitiveness. According to data from the Egyptian Textile Export Council, textile exports decreased by 14% in 2020. Since the beginning of this year, uncertainties such as the strengthening of the U.S. dollar, soaring inflation, disruptions in global supply chains, and the ongoing conflict between Russia and Ukraine have exacerbated industry challenges.
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