In a renewed effort to support the textile industry, the Egyptian government has decided to impose an export fee of EGP 3,500 per tonne on fabric scraps. The decision has come in response to demands from textile manufacturers in this regard.
These fees have been imposed on raw materials to ensure their availability in the local market and avoid negative impacts on the local textile scenario due to shortage of scraps, especially since it is a labour-driven industry. A previous decision in this regard is to expire by the end of 2015.
According to Trade and Industry Minister Tarek Qabil, “Exports of fabric scraps have been growing over the past three years from 43 tonnes in 2013 to 93 tonnes in 2014, and 294 tonnes in 2015.”
The ministry of trade and industry has also sought the required approvals from the Cotton and Textile Industries Holding Company and the Egyptian Textile Export Council Holding Company to maintain the fee. The Home Textile Export Council also suggested charging a fee, so that the fabric can be used by small and medium-sized factories. The Egyptian Businessmen’s Association, in fact, suggested a fee hike of 25 per cent.
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The move follows the recently approved investment projects by the Egyptian government for safeguarding the local textile manufacturing industry. In this regard, the Industrial Development Authority has issued 181 fresh approvals for new industrial projects, including 27 projects for textiles. According to IDA’s report, Textile production in Egypt ranked fourth among the sectors chosen for investments. These approvals will be implemented across 20 governorates like Menoufia (35 projects), Sharqia (23 projects), followed by Cairo and Giza, with 15 projects each, Alexandria with 15, Sohag and Gharbiya with 12 each etc.
The industrial development indicators for this month reflect the demand of local and foreign investors for industrial activities and their trust in the Egyptian textile sector.
