Business

Egypt: Government considers LE5 billion restructuring plan for textile industry

The Egyptian government is considering pouring in about LE5 billion to restructure and modernize the state-run textile industry. Negotiations are currently underway with a number of banks, including the National Bank of Egypt, to form an alliance to finance part of the cost of reviving the textile factories, said Momtaz al Saeed, a board member of the National Investment Bank, run by the Planning Ministry.

The Egyptian government wants to bring in the latest technologies in the textile factories, to ensure quality production. The textile industry is one of the labor-intensive industries, employing nearly 60,000 workers, according to statistics from the Holding Company for Spinning and Weaving. The Holding Company for Spinning and Weaving, which runs about 32 factories, is indebted to the NIB with about LE4.5 billion.