A Chinese alliance has expressed interest in establishing an integrated textile city in Egypt covering all stages of the industry, with investments estimated at $300 million, according to a report by Egyptian state-owned newspaper Al-Ahram.
This announcement came during a meeting between the Chairman of the General Authority for Investment and Free Zones (GAFI) in Egypt Hossam Heiba, and the Chairman of the China Textile and Garment Council Li Runfeng, on the sidelines of a visit to Egypt by a delegation of major Chinese textile companies to discuss enhancing cooperation between both countries in the textile and ready-made garment industries.
The delegation included presidents and representatives of 20 of the largest Chinese companies and alliances operating in various fields of the textile industry, such as spinning, dyeing, and printing.
These companies expressed their eagerness to invest in Egypt, seeing it as one of the most promising markets in the Middle East and Africa.
Heiba affirmed the Egyptian government’s desire to attract more Chinese companies for investments, particularly in the spinning and weaving sector, due to its economic and developmental significance.
This sector is among those targeted by the government as a high-value-added sector that contributes to creating numerous employment opportunities, he noted.
China stands as a valuable developmental partner
During the meeting, Heiba highlighted the importance of Egyptian-Chinese relations and the measures taken by the Egyptian government to improve the investment climate.
These include granting the golden license to numerous companies to facilitate operational and construction procedures, alongside providing various customs and additional incentives for projects that majorly contribute to driving economic growth and allocating part of their investments to research, development, and training.
Heiba invited Runfeng and the accompanying companies to closely examine investment opportunities in Egypt by visiting several sites, including Damietta, Sadat, and New Alamein, where the state intends to establish new free zones and industrial zones to attract more foreign direct investment and benefit from the free trade agreements signed between Egypt and the European Union, the United States, Africa, and Latin America.
Egypt has achieved significant progress in the logistics sector, Heiba noted, particularly in establishing new roads and railways and increasing the capacity of Egyptian ports.
This aims to encourage exports through free trade agreements and the various investment systems offered by the government, most notably the free zones and investment zones system.
He further stated that the General Authority for Investment is working in coordination with all government agencies to resolve problems facing investors in general and provide the utmost support to encourage Chinese investments in Egypt.
China is a major development partner for Egypt, with strong historical political ties. The two countries are celebrating this year the 10th anniversary of the signing of the Comprehensive Strategic Partnership Agreement between them.
