Egypt to Revive "White Gold" Industry

By Nawal Sayed

CAIRO, March 26 (SEE) - Egyptian government is keen on upgrading the system of cotton cultivation and textile industry to better meet demands of the local market and enhance exports.

In a meeting of the Supreme Council of Textile Industries in May, 2018, Trade and Industry Minister Tarek Kabil said that a clear map of textile industries in Egypt is needed to perfectly determine gaps between supply and demand.

According to him, this should also help define priorities to lure foreign investments and maximize the value added of Egyptian cotton.

The Ministry of Trade is keen on coordinating efforts with the Ministry of Agriculture to increase cotton cultivation in a way that would help meet needs of the local market.

Currently, Egypt is overhauling its cotton industry with the introduction of modern equipment, but the move may have adverse effects on the cultivation of its high quality, extra-long staple cotton, according to media reports.

The modernization process is to include replacing obsolete machines in tens of state-owned cotton weaving, ginning and spinning factories that do not handle the local production of extra-long staple (ELS) cotton. They operate only with imported short-staple cotton.

"Some of the machines in ginning factories date back to 1878," Public Affairs Minister Hesham Tawfik said.

He manifested that the modernization process would include merging some cotton plants, with the aim of increasing production four-fold in the coming years

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"Funds to finance the project, he said, would come from the sale of unneeded textile industry assets".

Egyptian officials are trying to instill new life into its textile industry, which contributes almost 3% of GDP, employs one-third of the industrial labor and generates exports worth $2.6 billion annually (15% of Egypt’s non-oil exports.)

The industry, however, suffered in the past two decades due to invasion of cheaper products from other countries.

The reports revealed that the first modernized ginning plant is to begin operations in April in the central province of Fayoum.

There are fears the modernization plan will have far-reaching effects on the cultivation of Egypt’s renowned ELS cotton and exports to international markets.

Prime Minister Mostafa Madbouly in February ordered the formation of a scientific and academic panel to oversee a plan for the cultivation of short-staple cotton.

Egypt is trying to adapt to the needs of its textile industry.