Egypt is preparing to introduce new investment incentives for textile manufacturing projects as part of efforts to strengthen domestic production, develop specialised industrial zones and increase textile exports.
Tarek Kabil, Egypt’s then Minister of Trade and Industry, announced the initiative during a meeting with the Supreme Council for Textile Industries. He said the government had designated three specialised textile cities alongside additional industrial complexes in Kafr El-Dawar and El-Mahalla El-Kubra, two of Egypt’s most important textile manufacturing centres.
The planned incentives were intended to encourage local and international investors to establish new textile projects, modernise production capacity and support the development of Egypt’s textile value chain.
Egypt moves to strengthen textile manufacturing
Kabil said the Ministry of Trade and Industry was cooperating with the ministries responsible for agriculture and the public business sector to develop Egypt’s textile industry.
The cooperation aimed to create a more integrated strategy covering different stages of production, from agricultural raw materials and spinning to fabric manufacturing and finished textile products.
Egypt has a long history in cotton cultivation, spinning, weaving and garment production. However, ageing machinery, limited investment and international competition have created challenges for many manufacturers.
The proposed textile cities and industrial complexes were expected to help attract new technology, improve manufacturing efficiency and create employment opportunities in major production regions.
Kafr El-Dawar and El-Mahalla El-Kubra have historically played important roles in Egypt’s spinning and weaving industry. Developing specialised manufacturing clusters in these locations could support cooperation between textile producers, suppliers and related service companies.
National strategy to support handicrafts
The Egyptian government was also preparing to launch its National Strategy for the Development of Handicrafts and Cultural Industries for the 2018–2020 period.
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Kabil said the strategy was expected to be introduced by the end of 2017. It aimed to support traditional crafts, improve product quality and increase the commercial potential of Egyptian cultural and handmade products.
The programme formed part of broader efforts to create employment, support small and medium-sized enterprises and expand the international market presence of Egyptian handicrafts.
Egyptian textile exports record growth
The investment plans were announced as Egypt’s textile exports continued to show moderate growth.
According to official figures, exports recorded by Egypt’s Textile Export Council increased by 3% during the first ten months of the year.
The value of exports reached approximately $673 million between January and October, compared with $651 million during the corresponding period of the previous year.
The government hoped that new investment incentives, specialised industrial zones and closer cooperation between public institutions would help accelerate export growth and improve the competitiveness of Egyptian textile products in international markets.
