Egypt is making strong strides in its garment and textile industry, with the aim of boosting exports and drawing more foreign investment.
The African state is capitalizing on global economic changes and a favorable business climate to attract international manufacturers, says Mohamed Abdel Salam, head of the Ready-Made Garments and Textiles Chamber at the Federation of Egyptian Industries.
Abdel Salam highlights that Egypt’s combination of economic stability and competitive production costs makes it an appealing destination for foreign investors. He points out that operational expenses in Egypt are among the lowest in the region.
For example, electricity costs only $0.07 per kilowatt-hour, which is significantly cheaper than the $0.12 seen in other markets. Water is also more affordable, priced between $0.30 and $0.50 per cubic meter, while rival countries often charge more than $1.50. Additionally, building factories in Egypt is cost-effective, with construction costs ranging from $500 to $800 per square meter, roughly half the cost in other nations. The country’s VAT rate of 14% and competitive labor wages further enhance its appeal.
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Thanks to these advantages, many global textile companies are now looking to either establish new operations in Egypt or expand existing ones.
A prime example is the Turkish Shahinler Group, which has been working closely with Egyptian officials to explore new investments. Recently, Shahinler’s leadership met with Egypt’s Minister of Public Enterprises and representatives from the Industrial Development Authority to discuss relocating parts of their production to Egypt. The focus areas include cotton processing, spinning, weaving, and ready-made garment manufacturing.
Shahinler, which already exports to 170 countries, has invested $50 million in Egypt so far. Their expansion plans could create up to 3,000 new jobs and will require large industrial land plots, between 50,000 and 100,000 square meters.
