Egypt has secured nearly $70 million in fresh investments by Chinese companies in garment and textile industries which are one of Cairo’s targets in IMF-recommended reforms intended to stimulate the economy and slash fiscal deficits.

After talks with Chinese businessmen in Shanghai on Thursday, Egypt’s investment and foreign trade minister Hassan El-Khatib said two companies have agreed to invest in new plants in Egypt’s free zones.

Egypt’s press reported that Zhejiang Holding company told the Minister it intends to invest $20 million in Egypt’s garment and textile projects and that it aims to boost the investments to $50 million within five years.

Another Chinese firm--Jiangsu Haite Fashion Company—said it would pump around $20 million into the construction of a new garment factory in Egypt.

“This factory will target European and US markets through free trade agreements, which Egypt has with various countries,” the Arabic language daily Alahram said.

A large delegation from China’s textile industry visited Egypt in May at the invitation of the Investment and Foreign Trade Ministry as part of the Cairo government’s strategy to attract investment to its fabric and garment businesses.

Egypt’s textiles sector is a core component of its economy and a major hard currency earner, according to officials, who told representatives of nearly 35 Chinese industrial companies that a “national programme” to develop the industry was underway, with the aim of increasing exports and reducing reliance on foreign markets.

Hani Salam, chairman of the Apparel Export Council of Egypt said in May that the country’s textile and garment exports have steadily risen to reach $1.2 billion in 2023, adding that the council expects exports to peak at $1.4 billion in 2025.

Chinese companies are already major investors in Egypt’s trade and industrial zones, mainly the Suez Canal Economic Zone (SCZONE), whose

chairman Walid Gamal El-Din said in 2024 that a promotion tour in China resulted in securing new investments worth over $1 billion.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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