Egypt Becomes Attractive For Turkish Textile & Apparel Sector

Turkish textile and apparel manufacturers are mulling shifting manufacturing to Egypt due to Egypt’s weaker currency, lower energy and labour costs and also promises of reforms.

“Egypt’s shift toward rational policies makes it a very good investment destination for Turkish textile enterprises,” Seref Fayat, head of the apparel division at Union of Chambers and Commodity Exchanges of Turkey said.

“Headwinds facing apparel makers in Turkey were evident even before Egypt allowed the pound to weaken, with textile exports falling in the first two months of this year,” Bloomberg reported.

Turkey’s central bank and the Treasury and Finance Minister Mehmet Simsek said the lira will continue to appreciate when adjusted for inflation, which is running at near 70 percent.

According to Seref Fayat, the Turkish Lira’s strength after years of steep declines makes it impossible for manufacturers to pass cost increases on to consumers, while for policymakers, keeping Lira steady is key to reining in inflation.