Cairo– The Egyptian government is negotiating with foreign investors to manage and operate the textile factories after the completion of its development, this comes after decades of deterioration in what was considered one of the most important industrial sectors in the country.
This industrial castle suffered from a significant decline, as it was one day 40% of the strength of the Egyptian economy at its peak. Before the development of the development plan, this percentage decreased between 2.5 and 3% only.
The Ministry of Public Business Sector announced the development of approximately 30 factories distributed over 7 subsidiaries, and with a development area of one million square meters, in a move that raises questions about the future of the “grandparent industry” that they export Egypt For decades.
Also, a fundamental question arises: Why does Egypt go towards handing over the management of this vital sector to foreign investors after all this development? Does this decision reflect the abandonment of the state’s role in leading this industry, or is it a recent attempt to save a long -suffering sector?
Cotton cultivation deterioration
Meanwhile, cotton cultivation in Egypt witnessed a historical decline for decades, as the cultivated areas fell from more than two million acres during the 1950s and sixties of the last century to less than 300,000 acres at the present time.
The Egyptian cotton was a strong symbol of the agricultural economy, and Egypt was one of the largest producers of cotton in the world, but it has declined due to serious marketing challenges that led to the reluctance of farmers and the shrinking of the cultivated area.
Why was the development of foreign investors?
The Minister of Public Business Sector, Mohamed Shimi, revealed that among the negotiated bodies with her, Chinese and Turkish investors, in addition to other entities that have extensive experience in the areas of operation, production and export in this sector.
The Egyptian minister attributed this move to “comes within the framework of the state’s plan to restore the pivotal role of this industry, in a way that leads to the development and localization of the spinning, weaving and clothing industry, as well as attracting investments.”
The project to revive the textile industry
Egypt launched a huge national project to develop the spinning and weaving industry in 2023, with the aim of reviving it after decades of deterioration. Prime Minister Mustafa Madbouly described this project, which aims to restore the glories of the Egyptian cotton industry, as a “great epic” at a cost of more than 56 billion pounds (22 billion pounds for establishments and 640 million euros for equipment).
The project is implemented in 3 stages:
- The first stage: It has already ended and started operating factories such as “Spinning 4”, “Spinning 1”.
- The second stage: the implementation rate reached 70%, and it is scheduled to be completed in the middle of 2025.
- The third stage: 54% of it was implemented, and it is expected to be completed by April 2026.
To meet the cotton marketing crisis and the decline in its cultivation areas to unprecedented levels, Egypt is counting on the end of the development of the “Industrial Castle” for spinning and fabric next year.
With the operation of the developed factories at full capacity, there will be a need for everything that is planted from the Egyptian cotton for use in the industry, rather than exporting it to a raw crude.
Development and complex challenges
Ahmed Ayyad, head of the General Division of Cotton of the General Federation of Chambers of Commerce and a member of the Cotton Exporters Union, praised any government steps aimed at reviving the textile and weaving industry, but criticized the slowdown in the development process that was announced more than once during the last decade without achieving concrete results.
He explained, in a statement to Al -Jazeera Net, that Egypt was planting about 17 million quintals of cotton, while the current production does not exceed two million quintals, as a result of the reluctance of many Egyptian investors to enter this sector, although the ready -made clothes industry is still relatively better.
Ayyad pointed out that among the most prominent reasons for this decline is the expansion of importing cotton from abroad at cheaper prices and less quality, which negatively affected the position of the Egyptian cotton, adding that the high costs of cultivation and cotton manufacturing pay the producers to search for less expensive alternatives, which leads to reducing dependence on local production.
A member of the Cotton Exporters Union considered that Bureaucracy Weak exploitation of competencies is one of the most prominent obstacles facing the textile industry, calling for activating the role of experiences away from routine functional performance.
Regarding the offering of factories to foreign investors, he explained that there is a strong desire from international companies to expand their activities through Egypt, due to its distinguished location, multiple commercial agreements and cheap labor.
Ready -made clothes, spinning and fabric: Reading in numbers
The Information Center of the Council of Ministers reviewed the current situation of the ready -made clothes sector in Egypt, highlighting its extreme importance and reality through the following indicators:
A major economic contribution
- It is one of the 5 most important major industries in the Egyptian economy.
- Its contribution is about 27% of the industrial product of Egypt.
- It adds about 3% of gross domestic product.
The size of companies and employment
- The number of companies is about 6,500 companies.
- These companies include about 2.5 million workers.
- Only 352 companies are exporting, equivalent to 5.4%.
Exports
- Exports from ready -made clothes recorded $ 2.45 billion in 2023.
- Spinning and textile exports amounted to $ 1.13 billion in 2024.
From “Economy Blind” to “imported cotton”
The head of the Supreme Council of Cotton at the Ministry of Agriculture, Mohamed Abdel Majid, says that Egypt’s production of cotton has become very little compared to global production (26 million tons), and Egypt is no longer a cotton country as a strategic commodity.
Nevertheless, the Egyptian cotton is still cheering without exploiting it as an added value, while other countries import it to mix it in large quantities and write “Egyptian cotton” on the final product.
Abdel Majid, who worked in the field of cotton for about 5 decades, adds to Al -Jazeera Net, that the lack of a clear strategy to advance the spinning and weaving industry, and the existence of economic policies wrong in the past, led to the decline in the position of Egyptian cotton and its value to the lowest level. It is time to revive this industry, which was the backbone of the Egyptian economy in the past century.
Abdel Majid, the former advisor at the Ministry of Agriculture, explained that the textile industry is a national industry mainly that requires huge potential, government support and political decision, as was the case during the era of former President Gamal Abdel Nasser, because it is a circle of continuous episodes. But he believes that many industrial castles were lost and the industry is dramatically abandoned in favor of importing and rapid gain.
He also reviewed the vital stages of the industry, starting with cotton gin, through the production of yarn and fabric, then dyeing and equipping, to the final product (clothes or woven). He pointed out that cotton is the only crop that cannot be easily stored or consumed as food, which requires the availability of an integrated system capable of dealing with it industrially.