Textile Exports on a Downward Trend: Tunisia Losing Ground to Egypt
Tunisia's textile exports have been on a downward trend for some time. While the country remains competitive for clients, there is a growing concern about the rise of competing countries in the Mediterranean, particularly Egypt. Cairo has announced the launch of two integrated textile cities in the regions of El Minya and Fayoum. Each city will cover an area of 5.5 million square meters, at a cost of 27 billion EGP (approximately 1,582 million TND).
The goal is to double exports, particularly ready-to-wear clothing, which is expected to reach 11.5 billion dollars within the next five years. Egypt is counting on this sector, offering real competitive advantages. The country is one of the main cotton producers, with a low-cost workforce. The minimum wage in Egypt does not exceed 410 TND, significantly lower than in Tunisia. Additionally, Egypt boasts a more developed logistics infrastructure, with available export ports, roads, and railways. For example, the second city in Fayoum is directly connected to major highways and is only 4.5 km from the high-speed train. A port is located just 30 kilometers away.
Once completed, the city is expected to attract 1.5 billion dollars in foreign and local direct investments, creating 150,000 direct and indirect jobs.
On the other hand, Tunisia is losing ground. Recently, Benetton left the country, causing difficulties for dozens of companies and threatening thousands of jobs. Regulations are not evolving and are becoming increasingly rigid compared to competitors. To avoid losing our place, we must act now. The cost of inaction will be very high, both socially and economically.
