Egypt’s Textile Industry on Growth Path After an € 80 million EU Funding

The support from the Egyptian Government and the European Union (EU) have triggered a wave of modernization and restructuring in Egypt’s textile and spinning industries, with an increasing number of small and medium sized companies investing in advanced machinery and equipments to enhance production capacity and quality of output.

The € 80 million, given in four installments, that the European Union earmarked to support the restructuring of the Egyptian spinning industry two years ago is being effectively utilized, with € 19.5 million being used by the Ministry of Investment to help restructure the sector and retrain workers, while the remainder is being used to privatize and modernize the public sector spinning and weaving companies in the country.

The Egyptian Government has also extended its support to the local textile industry by abolishing all tariffs on imported textile machinery and reducing tariffs on imported threads and other supplies for the industry. Textile exports also have been receiving a boost following several international bilateral agreements with leading importers of Egyptian textile products such as the USA and EU.

According to FEI statistics, there are 4,250 weaving, textile and clothing manufacturers in Egypt, with their production accounting for 26 per cent of national industrial revenues and 24 per cent of industrial exports. Total Egyptian exports of ready-made clothing itself are estimated at USD 448 million per annum, making Egypt the world’s 38th largest garment exporter.

Source: menareport.com