Ministry Of Commerce: Egypt Vigorously Promotes Modernization Of Textile And Garment Industry

According to the data from the center for industrial modernization (IMC) under the Ministry of trade and industry of Egypt, the textile and garment industry accounted for 3% of Egypt's GDP and 11% of non oil exports in 2021, the website of pyramid reported recently. Considering that there are 4600 textile and garment enterprises in Egypt, with a total investment of 6 billion US dollars and 1.5 million jobs, the contribution of the industry to GDP is still not high.

Since 2019, Egypt has modernized its textile industry, merging 23 state-owned textile companies into eight, and injecting 23 billion pounds into the state-owned Egyptian cotton and textile holding company for equipment, plant renewal and staff recruitment. The Ministry of public enterprises of Egypt pointed out that from the end of 2022 to 2024, the restructured textile mills will be put into operation one after another, and the existing production capacity will be improved by eliminating old machines and acquiring foreign enterprises. Egypt will set up special companies to promote yarn and clothing brands, managed by foreign marketing experts, and encourage farmers to grow high-quality cotton. In February this year, the Ministry of trade and industry of Egypt also set up the textile industry committee to vigorously promote the development of the textile industry.

At present, 55% of Egypt's synthetic fibers are imported. Muhammad Mohamed, chairman of the textile industry department of the Egyptian Federation of industries, said that as long as the state is willing to increase private sector investment in the industry, enterprises will increase production capacity, use local materials and increase the added value of products, and increase export revenue. Industry insiders pointed out that the sharp rise in the cost of raw materials led to the lack of cash liquidity of Egyptian textile and garment enterprises, increased costs and reduced export competitiveness. According to the Egyptian Textile Export Commission, textile exports will decrease by 14% in 2020. Since the beginning of this year, uncertainties such as stronger US dollar, soaring inflation, disruption of global supply chain, and continued conflict between Russia and Ukraine have exacerbated industry challenges.