Swiss textile machinery producers enjoyed strong exports in Egypt up to 2013 but the country’s economic and political woes since then have seen shipments decline to only 20 per cent of previous levels. Textile production is a vital contributor to Egypt’s economy. But the sector’s performance and potential is being held back by financial constraints, rooted in the serious economic downturn of recent years and the accompanying severe devaluation of the Egyptian currency.
Political instability since the revolution of 2011 drove away investors. And it has thus far hampered the much-needed investment in new technology by the textile industry. Switzerland has made offers of assistance in the key area of financing capital imports. Switzerland is ready to support Egypt in re-connecting with worldwide textile community.
Difficulties in accessing foreign funds and the high costs associated with this have been a major obstacle to Egyptian companies seeking to renew their equipment and take up new technology.