The most recent statement from Fitch Solutions notes that Egypt is ideally positioned for the Middle East and North Africa (MENA) area in terms of clothing production because Egypt has a regional workforce. The report notes that, because of its favorable demographic conditions and relatively low labor cost, Egypt could make substantial gains in mid-range apparel manufacturing. In recent years, the country has carried out significant reforms. These include the implementation of new legislation on investment and bankruptcy, currency liberalization and growth. Egypt also has simple labor costs equivalent to its rivals in Asia. Furthermore, the countries of North Africa are geographically close to Europe, and the United States and the EU have exclusive market access. This might outweigh the relatively high labor and social security taxes in the country. The study further increases the competitiveness of Egypt, says investments in infrastructure and structural reforms aimed at improving the operating climate. Egypt’s population is large, its manufacturing skill is medium, its many commercial agreements and its medium-sized transit network.
Home » News & Views » Business Focus » Promising demographic conditions and comparatively near to the ground labor price favored Egypt to be a perfect location of producing clothes in the Middle East and North Africa: Fitch Solutions