Egypt is investing $1.1 billion in revitalizing its textile industry, with a focus on modernizing the spinning and weaving hub of al-Mahala al-Kobra. The country aims to overhaul its century-old textile, spinning, and weaving factories by them into large industrial complexes capable of producing tens of thousands of tons of fabric daily. The government's modernization initiative is aimed at revitalizing an industry that once accounted for 40 per cent of Egypt’s export revenues but now contributes only 2.5 per cent to 3 per cent.
The modernization project is designed to help Egypt regain its status as a key textile producer by importing modern machinery, renovating production units, and improving production efficiency. As a result, Egypt plans to significantly add value to its cotton production, one of the world’s top producers of long staple cotton.
Historically, developing nations like Egypt have struggled to add value to raw materials such as cotton, often losing out on potential profits. However, Egypt is changing this trend by focusing on turning raw cotton into manufactured goods locally. This shift is expected to reduce the country’s reliance on cotton exports, with a growing proportion of local cotton production being used for domestic manufacturing rather than for international sales.
The Egyptian government predicts, the country may no longer need to export its cotton once the modernization program is fully implemented, likely by the end of this year or early next year. Local demand will absorb the entirety of their crop, thanks to the new factories.
In the 2024 cotton season, Egypt increased its area under cotton cultivation to about 225,000 acre from 216,000 acre in 2018. The country produced approximately 1.8 million pounds (about 4 million kilograms) of cotton, an increase from 1.4 million pounds (around 3.1 million kilograms) in 2023. However, most of this cotton is now expected to meet local industrial needs, potentially reducing the volume available for export. Currently, Egypt accounts for about 20 per cent of the world’s long staple cotton, with exports going to 22 countries, down from 55 countries in the past. This change could have a significant impact on global cotton supply.
