Home / news / Egypt seeks private sector partnership for revamped textile

Egypt seeks private sector partnership for revamped textile

Businessmen Team news 29 September 2025 02:32 PM
Share Article:
Egypt seeks private sector partnership for revamped textile

Egypt will partner with the private sector to manage its newly renovated textile factories, Prime Minister Dr. Moustafa Madbouly said Monday, emphasizing a plan to maximize returns on significant state investments in the spinning and weaving industry.

Madbouly stressed the importance of developing the sector, noting the government has invested billions of pounds in the facilities. He said the government's intention is to enter into partnerships with the private sector to ensure expert management and improve performance.

The plan, which follows directives from President Abdel Fattah al-Sisi, aims to continue developing public business sector companies, improve management, and boost asset returns, particularly through private sector partnership and technological advancement. Madbouly called for clear targets and a specific vision for each company.

The prime minister confirmed that President Sisi’s instructions include implementing sound governance to guarantee top-level management for the newly developed firms. He directed officials to promote the upgraded facilities for private sector management under a strict governance framework, which would help preserve and grow these investments while adhering to international standards for quality, sustainability and continuous development.

The official Cabinet spokesperson, Mohamed El Homossany, confirmed the meeting also addressed progress on the factory development projects and related cooperation with the private sector.

Public Business Sector Minister Mohamed Shimi explained that the National Project for the Development of the Spinning and Weaving Industry aims to maximize the added value of Egyptian cotton, restore Egypt's global leadership in the textile industry, and enhance the competitiveness of national products globally. The project includes a comprehensive modernization of infrastructure, factories and machinery, introducing the latest global technologies in partnership with the private sector, and improving worker efficiency through continuous training.

Shimi reviewed the executive status of the development projects, stating the first phase is complete and operational, with work underway to finish the second and third phases.

He reported a continuous increase in the total quantities of yarn produced and sold as a result of the development efforts. As an example, the Minister cited the Misr El Mahalla Company, where produced quantity rose from 117 tons in the 2022-2023 fiscal year to 3,373 tons in 2023-2024, and then to 6,288 tons in 2024-2025. Shimi also outlined efforts to secure operational raw materials for the factories.

Regarding private sector involvement, Shimi affirmed it is a strategic partner in sustainable development, and encouraging local and foreign investment is a priority. He noted that the Ministry's companies have wide investment opportunities, and are offering attractive solutions and facilities to investors.

The Minister cited numerous successful private sector partnerships in various projects, highlighting the government's openness to local and foreign partners, its commitment to attracting new investments to the Egyptian economy, and its dedication to giving the private sector the opportunity to drive economic growth.

Shimi said the Ministry has held many meetings with international investors from countries including South Korea, China and Turkey, who are interested in Egypt's textile sector. He added that all available investment opportunities and the ongoing development work have been presented to them.

He concluded that cooperation with leading companies aims to manage and operate the factories at maximum capacity, leveraging their expertise in soundly governed management. These partnerships also target the utilization of idle assets, foreign currency provision, job creation, and boosting production for export.