{"id":581873,"date":"2023-02-26T00:00:00","date_gmt":"2023-02-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/the-spinning-and-weaving-industry-is-getting-back-on-its-feet\/"},"modified":"2023-02-26T00:00:00","modified_gmt":"2023-02-26T00:00:00","slug":"the-spinning-and-weaving-industry-is-getting-back-on-its-feet","status":"publish","type":"inside_industry","link":"https:\/\/enterpriseam.com\/egypt\/inside_industry\/the-spinning-and-weaving-industry-is-getting-back-on-its-feet\/","title":{"rendered":"The spinning and weaving industry is getting back on its feet."},"content":{"rendered":"

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<\/span>The revival of the spinning and weaving industry:<\/span> The Public Enterprise Ministry has <\/span>created a strategy to revive a number of industries and develop a few others through partnerships with the private sector. The spinning and weaving industry is included in the strategy. <\/span><\/p>\n

It is part of a larger plan to localize industries <\/span>as part of the state's efforts to reduce our significant import bill. This strategy includes both expanding current industries and introducing new ones. Reducing imports is a key component of narrowing the current account deficit, which <\/span>narrowed to 3.7%<\/a><\/span> in FY 2021-22, on the back of oil and non-oil exports, rising tourism revenues, and an increase in FDI. This also comes as we look to build a more resilient local industry (and economy) that is able to withstand shocks from the outside world, such as the effects of covid and the Russia-Ukraine war.<\/span><\/p>\n

The strategy is all inclusive: <\/span>The ministry\u2019s strategy is open to all kinds of cooperation and partnerships with the private sector, Public Enterprises Minister Mahmoud Esmat <\/span>told MPs earlier this month<\/a><\/span>, adding that it falls under the new <\/span>state ownership policy<\/a><\/span>.<\/span><\/p>\n

More investments from private sector players to come? <\/span>The ministry has prepared a list of state-owned companies seeking fresh investment. It is also working on qualifying a number of companies to partner up with the private sector as part of the state\u2019s efforts to drum up more local and foreign investments and encourage more private sector participation in our local economy. <\/span><\/p>\n

The spinning and weaving sector is on the lookout for major investments: <\/span>The state is working on a large-scale project for the sector\u2019s revival. This will require major investments in factories and the cultivation of short-staple cotton in coordination with the Agriculture Ministry. <\/span><\/p>\n

Why is the spinning and weaving industry receiving special attention? <\/span>The government sees the sector as one of the most important ways to get the Egyptian economy back on track and boost exports. The government is aiming to increase exports to <\/span>USD 100 bn<\/a><\/span> a year within the next 4\u20135 years and reduce dependency on imported products.<\/span><\/p>\n

Four phases for the sector\u2019s revival: <\/span><\/p>\n