Egypt
TanzaniaABOUT TEXTILE SECTOR
- The textile industry has evolved greatly since the invention of the cotton gin in the 18th century. Textiles are products made from fiber, filaments, yarn, or thread, and can be technical or conventional depending on their intended use.
- Traditionally the Textile & Clothing sector was responsible for significant job numbers in developed countries, but over the last decades, the sector has become the first step towards manufacturing production and employment for many developing countries. While total world employment in T&C hardly changed in recent decades. The distribution of employment changed substantially with the EU and the US losing jobs and mainly Asia gaining. From a global perspective, the textile industry is an ever-growing market, with key competitors being China, India, the United States, and the European Union.
- The textile sector is considered one of the most important industrial sectors that play aprominent role in the Egyptian national economy, due to the great comparative advantage that Egypt enjoys in this industry, and its global reputation in raw material (cotton) of high quality. The textile and clothing industry is also the second largest industrial sector in Egypt after the food industry.
- Egypt hosts the largest and most productive cotton and textile clusters on the African continent, as the entire production process - from the cultivation of raw materials (mainly cotton) to the manufacture of yarns, fabrics, filament yarns and fibers, and the production of ready-made garments - takes place in Egypt. With a volume share of about 75 % of natural fibers, cotton is by far the most widely used natural fiber for home and apparel textiles.
WHY TEXTILE IS A STRATEGIC SECTOR..?
TEXTILE: STRATEGIC SECTOR
- The Egyptian textile market has other advantages that may attract investors, as the facilities of the initial stages of production require large capital expenditures, but once the equipment is installed, the textile factory can work with a few hundred employees at most.
- The Egyptian textile industry has a vertically integrated functional model, starting from raw materials to finished products of clothing and home textiles, in addition to the local availability of Egyptian cotton fibers and imported fibers (polyester, viscose, wool, ... etc.).
- Egypt is a center for a wide variety of apparel products as it has many factories that meet legal and community standards approved by Wrap, ISO and OEKO-TEX organizations. This contributed to increasing export opportunities for Egyptian textiles, as well as providing vertically integrated supply chains in the textile sector.
- The Egypt Textile Manufacturing Market is growing at a CAGR of >4% over the next 5 years.
Demand on Textile sector
- Egypt's textile manufacturing industry is the second largest industry, with a 25% share in the entire apparel sector which accounts for 3% of GDP.
- The spinning and textile sector is one of the most important export sectors in Egypt, as Egypt's exports of raw cotton during FY2021/22 amounted to about USD 156 million, and Egypt's exports of ready-made clothes increased by 42% during FY2021/22.
The Textiles Market Structure:
- The public sector dominates the productive industry by 50% in spinning, 60% in knitting, and 60% in weaving; The private sector also owns 90% of the garment sector in the industry, as well as the dominance of the textile sector on large industries with a strong influence of the public sector.
- The number of new established companies in textile sector (from 2014 to 2021) reach about 6740 companies with issued capitals EGP 10.5 billion.
- In 2023, the revenue in the Apparel market in Egypt is estimated to be approximately US$17.04bn.
- It is projected to experience an annual growth rate of 5.53% from 2023 to 2028 (CAGR 2023-2028).
- The largest segment in this market is Women's Apparel, which is expected to reach a market volume of approximately US$7.58bn in 2023.
