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ITC studies opportunities in the Egyptian apparel industry for growing exports in the medical and hygiene textiles global market 2021-11-15 17:46:07


ITC studies opportunities in the Egyptian apparel industry for growing exports in the medical and hygiene textiles global market

The COVID-19 pandemic has forced most industrialized sectors to revamp their productions and tackle the new challenges imposed by the crisis. Among the most affected ones was the textiles and clothing sector that saw a considerable decrease in production and exports. According to the Apparel Export Council of Egypt, garments exports dropped by 14% in 2020. Nevertheless, the garment industry also found promising opportunities to overcome these issues by investing in medical apparel.

The International Trade Centre (ITC), a joint organization of the United Nations and the World Trade Organization, evaluates in the 2020 SME Competitiveness Outlook report that Egypt could take regional leadership in exports of synthetic nonwoven fabrics, an essential material for filtered masks production. This would allow the country’s textile and apparel sector to become more agile and respond to the increasingly global demand for medical supplies and hygiene products. In this context, ITC's Global Textiles and Clothing Project (GTEX/MENATEX) in Egypt studied the growth potential of the medical apparel industry in the country.

The research focused on the global Medical Textiles (Medtech) industry and analyzed the production and export base of the different types of medical clothing (drapes, scrubs, and gowns, gloves, facial protection, sterilization wraps, protective apparel and others), taking into consideration the considerable shift in global market post COVID19 pandemic and its implications on supply and demand. By making an overview of the global medtech supply chain, trade flows and mapping the local Egyptian sector’s capacities, opportunities and challenges, the study offered by the International Trade Centre provides recommendations to support the sector's growth and development. 

While the global Medical Apparel sector was valued at close to USD 63 billion in 2019, the study also found that Egypt has a total accessible market of around USD 18.6 billion for medical and hygiene textiles and medical apparel. The country has a significant opportunity to grow its medical garment manufacturing, organize its local market and create a sizeable local demand. By structuring its domestic market and meet international standards imposed by governments and importers, Egypt could then explore its potential to become a regional supplier of Medical Apparel, focusing on exports to the Middle East, Africa, Europe, and the US due to its proximity and duty-free access.

However, to capitalize on these opportunities, Egypt will need to overcome several challenges. The absence of testing and certification facilities to ensure product quality, the lack of government enforcement of existing specifications and the difficulty to access raw material are key impediments facing Egyptian manufacturers in the sector. Nevertheless, Egypt could unlock significant local demand and access a large export market if it is able to organize its domestic market and empower exporters.

Matthias Knappe, Head of Fibres, Textiles and Clothing Programme at ITC, highlights that "the growth of this sector is driven by innovation, sensitization of the medical community on the importance of protective apparel, and by the strengthening of an enabling business environment for a local industry base to flourish. Under the GTEX/MENATEX project, we are supporting beneficiary companies to reorient part of their production into medical textiles, a crucial action to help them seize new opportunities in Egypt and internationally.”

To read the complete study, please write to Yhelal@intracen.org. The study is available in English and Arabic languages.

About the GTEX/MENATEX Programme 

The GTEX MENATEX programme is funded by the State Secretariat for Economic Affairs (SECO) of the Swiss Confederation and the Swedish International Development Cooperation Agency (Sida), focusing on six priority countries (Egypt, Morocco, Jordan, Kyrgyzstan, Tajikistan and Tunisia). The programme aims to encourage exports of textiles and clothing from developing countries to promote employment and income generation throughout the value chain.

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