Egyptian textile industry has proven that it is more than up to the task, if only given the chance. According to the country’s central bank statistics, in the decade before Egypt’s 2011 uprising, cotton textile exports increased by about 19 per cent a year on average, having surged from US$108.9 million in 2001-02 to $628.0m by 2010-11.

Exports of ready-made clothes climbed almost as quickly, jumping 17.6 per cent a year, from $187.2m to $771.2m. Since the uprising this growth has come to halt, with exports of cotton textiles increasing by only 3.1 per cent annually in the four years to June 2015, and ready-made clothes by only 1.4 per cent. Textile exports actually contracted in the two years after July 2013, when Mohammed Morsi was removed from power and a degree of political stability was restored. Many smaller companies have shut down entirely.

To be sure, the overvalued pound has not caused all the problems, according to Mohamed Kassem, chairman of the Ready Made Garments Export Council of Egypt. The government raised the prices of electricity and natural gas in July 2014, with those paid by industry rising especially sharply. Labour and water bills also increased, and because of security concerns the government has made it harder to import many chemicals. All this has happened at a time when textile prices were falling around the world.

According to Kassem, the biggest problem remains that the strong pound is pricing Egyptian textiles out of the export market. The exchange rate is at the top of the list. Although the Egyptian pound was devalued against the dollar several times last year, since mid-2013 it has actually strengthened against the euro, the currency of one of Egypt’s main export markets. Meanwhile, the currencies of many of Egypt’s competitors have weakened, making their products more attractive.