Egypt is positioning itself as a strategic manufacturing and investment hub for the next phase of global textile and apparel value chains, following a high-level roundtable between the General Authority for Investment and Free Zones (GAFI) and the Hong Kong Trade Development Council (HKTDC).
Key Outcomes from the GAFI–HKTDC Roundtable
The meeting brought together Egyptian and Hong Kong textile and garment leaders to explore investment partnerships, supply chain localization, and market access strategies.
Core messages from Egypt
- Egypt’s textile and ready-made garment sector is among its most competitive industries, underpinned by:
- A mature industrial base
- Skilled and cost-competitive labour
- Strong backward and forward linkages
- Qualified industrial zones and logistics infrastructure
- Egypt is actively positioning itself as:
- A gateway to African markets
- A platform for value-added manufacturing, not just cut-and-sew
- A hub for investors seeking preferential trade access to the EU, US, and regional markets
Hong Kong plays a dual strategic role:
- As a gateway for Chinese and Asian companies expanding overseas
- As a global financial centre capable of mobilising investment capital for industrial relocation and scaling
To support this, Egypt has established a dedicated unit for attracting Chinese investment, offering fast-track approvals and continuous investor support.
Hong Kong & China’s Perspective: Egypt as a Strategic Partner
Hong Kong institutions increasingly view Egypt not merely as a low-cost manufacturing base, but as a long-term strategic partner for the future of China’s textile and garment industry.
Egypt’s strengths include:
- Improved sustainability compliance
- Strengthening of integrated production chains
- Competitive geography linking Europe, Africa, and the Middle East
- Skilled workforce and improving infrastructure
This framing aligns Egypt closely with China’s Belt and Road Initiative, where supply-chain resilience, diversification, and proximity to end markets are becoming critical.
Strategic Interpretation
This engagement reflects a broader restructuring of global apparel supply chains:
- Rising geopolitical risk, tariffs, and compliance pressures are pushing Asian manufacturers to diversify production footprints
- Egypt offers a rare combination of:
- Scale
- Trade access
- Labour availability
- Proximity to key consumer markets
For Hong Kong and Chinese firms, Egypt represents de-risking with upside.
For Egypt, the partnership accelerates its transition from volume manufacturing to value-added, export-oriented industrialisation.
Bottom line:
This is not a routine investment dialogue. It signals Egypt’s intent to become a central node in the next generation of global textile and garment value chains, with Hong Kong acting as both connector and catalyst.
