Business

Europe Accounts For 30% Of Egypt's RMG Exports

Europe accounts for 30% of Egypt's apparel exports, according to Egypt's Readymade Garments Export Council, and the government's 2020 strategy aims at further increasing market share in Europe.

The 2020 strategy was launched in November 2016 by Minister of Trade and Industry Tarek Kabil. It includes five main axes: industrial development, Small and Medium Enterprise (SME) development and entrepreneurship, export development, training and technical education development, and corporate governance and development.

The strategy aims at increasing exports and strengthening local industry. Exports were worth US$ 22.4 billion in 2017, with an increase of US$ 2 billion, while imports decreased US$ 10 billion to US$ 56 billion, compared to US$ 66 billion in 2016.

The council is working towards developing the financial systems of the textile and garment sector companies. It is utilizing the special programmes of the European Bank for Restructure and Development, to help the SME sector.

According to EBRD, the bank has financed 78 projects in Egypt totaling €3.5 billion ($4 billion). The current portfolio of projects is worth €2.7 billion.

Established in 1991, EBRD is an international financial institution that is owned by 66 countries from five continents, as well as the European Union and the European Investment Bank, targeting to develop a sound investment climate and promote environmentally and socially sound and sustainable development.

Sherin Hosny, executive director of the Readymade Garments Export Council, said earlier that Egypt's exports of readymade clothes increased 16% in the first quarter of 2018, to US$ 382 million, compared to US$ 330 million during the same period of 2017.