As global supply chains undergo their most significant restructuring in decades, Egypt stands at a decisive moment, with Mohamed Kassem, president of the Egyptian Exporters Association (Expo Link) and former chairman of the Apparel Export Council (AEC), describing the current global shift from traditional on-shoring to near-shoring as “a golden opportunity” for the country.
“The world is redesigning its supply networks after the pandemic and the Russia-Ukraine war. Markets are looking for reliable, closer production bases, and Egypt fits that model perfectly,” Kassem told Al-Ahram Weekly. The surge in interest, he said, has already translated into strong performance in apparel exports.
According to the AEC, Egypt’s apparel exports jumped by 26 per cent, or nearly $2 billion, in the first seven months of 2025, buoyed by rising demand particularly from Europe and Africa. Egyptian manufacturers’ expertise in the various stages of the production process and the country’s skilled labour and strategic positioning give it a competitive edge in the sector, and the AEC is now targeting $12 billion in exports by 2031.
However, despite this momentum, Kassem warns that significant structural hurdles could threaten Egypt’s ability to fully capture this opportunity. He notes that the sector’s recent growth has come “despite the global market shocks caused by Trump’s tariffs”, underscoring both the industry’s resilience and the need for deeper reforms at home.
One of the most pressing challenges is the shortage of well-serviced industrial land to accommodate new foreign and domestic investments. Current industrial activity remains heavily concentrated in the Suez Canal Economic Zone, 6 October city, Borg Al-Arab, and 10 Ramadan City, leaving Upper Egypt largely bypassed, Kassem said.
This concentration is depriving Upper Egypt of investment returns and is affecting unemployment and poverty in the region. To address this, the Federation of Egyptian Industries and several export councils have submitted proposals to establish a series of industrial complexes in the Nile Valley, aiming to expand manufacturing capacity while ensuring more equitable regional development.
Another obstacle is the shortage of well-trained labour. Kasem said that outdated vocational education and training systems are unable to supply the skilled workforce required by modern manufacturing operations. Upgrading these systems, he says, is essential for sustaining export growth and attracting long-term investment.
Egypt has set an ambitious goal of reaching $145 billion in exports by 2030, a target that is well within reach, Kassem said, provided that the country adopts a clear export strategy. That means pinpointing sectors where Egypt holds genuine competitive advantages, offering targeted support, and aggressively pursuing new markets.
Under the National Narrative for Economic Development, Egypt aims to boost export value by 20 per cent annually through 2030. Industrial exports rose 9.9 per cent in the first half of 2025, hitting an estimated $17.6 billion, according to Minister of Industry and Transport Kamel Al-Wazir.
The figure marks a steady increase from the $16 billion recorded during the same period in 2024 in growth that the minister attributed to the government’s intensified focus on strengthening the country’s industrial sector.
* A version of this article appears in print in the 20 November, 2025 edition of Al-Ahram Weekly
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