14-05-2025
Egypt seeks Chinese investment in textile projects
Egypt has invited representatives of 25 Chinese clothing companies in a bid to persuade them to invest in its textile industry which is in the midst of a major development programme in the Arab country.
Egypt, a key cotton producer, has just launched an ambitious plan to expand its textile and garment sector, a key component of its economy and a major hard currency earner.
Egypt's press said on Monday a delegation comprising 37 Chinese businessmen and industrialist met Minister of Public Enterprises Sector Mohammed El-Shimy for talks on available projects in domestic textile industries.
El-Shimy explained 'the national programme to develop Egypt's textile industry' as part of plans to boost exports and stimulate the economy, Alwatan newspaper said.
'The Minister told the Chinese delegation that the textile industry is currently witnessing a comprehensive restructuring and development plan covering marketing, administrative, financial and technical aspects,' it said.
'He affirmed that this plan has created promising investment opportunities for local and global partners…he also made clear that the plan aims to restore Egypt's pioneering position in this industry, expand its market share and increase profitability.'
Textiles and read-made garments are a key component of Egypt's exports and officials hope increasing sales of such products and other exports would help attain its long-term plan in wiping out a persistent trade deficit.
Egypt's textile exports have seen a significant increase in recent years, reaching $1.2 billion in 2023, marking a five percent growth, according to Hani Salam, Chairman of Apparel Export Council of Egypt.
Salam said last week that the council aims to raise the sector's exports by around 10 percent to $1.23 billion by the end of 2024.
He noted that the council targets an increase in textile and garment exports to $1.4 billion by the end of 2025.
Mohamed Abdel Salam, Chairman of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries, said last month that Egypt's garment and textile sector is experiencing significant growth, buoyed by global economic shifts and a surge in foreign direct investment.
Abdel Salam noted that Egypt's 'favorable' investment climate is attracting increased attention from international manufacturers, thanks to its strong economic fundamentals and competitive production environment. 'Egypt offers one of the most cost-efficient operational landscapes in the region,' he said.
(Writing by Nadim Kawach; Editing by Anoop Menon)
