Egypt Launches Initiative To Support Cotton-Based Smes, Strengthen Production Clusters

(MENAFN- Daily News Egypt) The Micro, Small and Medium Enterprise Development Agency (MSMEDA) has launched the“Egyptian Cotton Festival” initiative in cooperation with Cairo Governorate and in collaboration with the Egyptian Marketing Studies Foundation, aiming to support micro, small and medium enterprises (MSMEs) and production clusters operating across Egypt's cotton value chain.

The initiative seeks to help businesses establish stronger linkages with major brands, enhance production and marketing efficiency, and expand access to local and international markets.

It will support enterprises specialising in cotton furnishings and textile manufacturing, spinning and weaving industries, ginning and spinning machinery, chemicals and dyeing, in addition to suppliers and agents dealing in cotton raw materials. Participating businesses will also receive assistance in developing operations through financial and technical support programmes.

Bassel Rahmy, CEO of MSMEDA, met Mahmoud Hassan, Chairperson of the Board of Trustees of the Egyptian Marketing Studies Foundation, to announce the agency's sponsorship of the initiative.

Rahmy said the programme aligns with directives issued by Prime Minister Mostafa Madbouly, who also chairs MSMEDA's board, to strengthen the capabilities of domestic small-scale industries, support export potential, and expand locally manufactured products capable of replacing imports while remaining competitive.

He noted that enterprises operating within Egypt's cotton sector represent a promising industry that MSMEDA is keen to support, alongside sectors including furniture manufacturing in Damietta, handicrafts, heritage industries and complementary industries serving larger enterprises.

According to Rahmy, the initiative will be implemented through several pillars coordinated by MSMEDA in cooperation with relevant authorities. These include introducing businesses to export mechanisms, helping entrepreneurs understand required procedures, and supporting them in obtaining certifications needed to access international markets.

The programme will also assist enterprises in benefiting from incentives available under the MSME Development Law No. 152 of 2020 and Law No. 6 of 2025, which provides tax incentives through the Egyptian Tax Authority. In addition, efforts will focus on strengthening partnerships between larger companies and smaller enterprises.

Rahmy added that Cairo Governorate is sponsoring the initiative as part of broader cooperation with MSMEDA to support the MSME sector, in line with state efforts to increase the sector's contribution to the national economy. He described Cairo as the country's largest market for Egyptian products through direct sales, contracting opportunities and exports.

For his part, Mahmoud Hassan said the initiative represents a step towards restoring the global standing of Egyptian cotton products as one of the national economy's key strategic assets, while strengthening their presence in international markets through a modern development approach.

He added that the Egyptian Marketing Studies Foundation aims to drive meaningful improvements in marketing and institutional practices while promoting Egyptian products domestically and internationally to enhance competitiveness.

Hassan also praised cooperation with MSMEDA and Cairo Governorate, describing it as an effective model for supporting entrepreneurs and small businesses in the cotton sector by helping them improve products, access new markets, increase exports and expand networking opportunities with major Egyptian brands.

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