Egypt has initiated a new phase of high-level consultations aimed at expanding domestic textile production and lowering the national import bill. Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, met with Minister of Public Enterprises Sector Mohamed El-Shimy, alongside leading manufacturers from the spinning, textiles, garments, and home furnishings sectors.
A Strategic Push to Strengthen the Textile Value Chain
Al-Wazir emphasized that this meeting is the first in a series of regular dialogues designed to modernize and integrate Egypt’s spinning, weaving, and ready-made garment industries. He noted that Egypt’s growing reputation as a global hub for apparel manufacturing has increased interest from international brands seeking to establish production in the country.
He highlighted the need to deepen all stages of the textile value chain—ginning, spinning, weaving, dyeing, finishing—particularly given Egypt’s strong raw-material base, including cotton and flax.
The minister reaffirmed the government’s commitment to supporting serious investors, expanding industrial capacity, and reducing supply-chain gaps that currently force manufacturers to rely heavily on imports.
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Industry Challenges: High Costs, Limited Supply, and Skills Shortages
Participants outlined a series of persistent obstacles:
- High capital costs of establishing spinning plants
- Restrictions on approved countries for cotton yarn imports
- Insufficient local yarn production to meet industry needs
- Declining cotton cultivation
- Shortages of skilled technical labor
- Competition from imported products with lower regulatory oversight
Manufacturers warned that these issues hinder the competitiveness of Egyptian textile and garment factories, especially those targeting export markets.
Tackling Import Irregularities and Supporting Industrial Integration
Al-Wazir announced that a joint committee—comprising the Ministry, relevant authorities, and the Federation of Egyptian Industries—has been formed to address customs evasion and enforce compliance. The committee will ensure factories import raw materials strictly according to their actual production capacity.
He stressed the need for closer monitoring of factories operating in free zones or using temporarily admitted raw materials intended for re-export.
To enhance industrial integration, he instructed the Industrial Development Authority to require new garment investors to include spinning and textile components in their project plans.
Expanding Private-Sector Partnerships and Cotton Governance
Minister Mohamed El-Shimy highlighted the importance of establishing a unified governance framework for cotton trading and circulation to meet Egypt’s yarn requirements. He encouraged factories to expand yarn and textile production and increase investment to strengthen the sector.
El-Shimy reaffirmed the Ministry’s readiness to open its seven affiliated spinning and textile companies to private-sector partnerships. Such collaborations, he noted, would strengthen domestic supply, expand exports, and support long-term industrial development.
