MGS Industry — FKA Nile Textile Industries — has earmarked EGP 2.5 bn (c. USD 50.0 mn) for the first phase of its expansion plan, with a plan to increase this to USD 500 mn over the next five years, said Chairman Mahmoud Ghazal in a statement seen by EnterpriseAM. The expansion is supported by an unnamed “major” US investment company that focuses on countries outside the states.

The US investment company-backed push is already pushing to acquire local industrial companies and also new companies across several governors, according to Ghazal. The company is looking to expand its spinning and weaving capabilities, but is also eyeing agriculture and real estate.

It makes sense to use Egypt as an export base to the US given our preferential tariff treatment, as the country was only given a 10% tariff in Trump’s Liberation Day ramping up of the global trade war. Some argue that this gives us an unique chance for Egypt to take advantage of the new US tariff system, particularly in sectors like ready-made garments and textiles — where tariffs on exports from competitors like Bangladesh and Vietnam exceed 40%.

As regular readers of EnterpriseAM will know, China and Turkey definitely got the memo, with news of companies from the two countries upping their activities in the country becoming a now common part of the local business news cycle.

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