● Al-Mashat: The government continues to implement structural reforms aimed at enhancing the contribution of the real economy to the GDP, increasing private sector participation, and raising investment rates.
● The project reflects the role of economic diplomacy in driving development, growth, and job creation.
● Long-standing partnerships with international institutions open up opportunities for future cooperation to support economic development across various sectors.
● Agriculture and industry are key drivers of growth and job creation. This project strengthens the integration of Egyptian cotton into global value chains.
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in the signing of the Egyptian Cotton Project (Phase II). The project aims to promote the environmental, economic, and social sustainability of Egypt's cotton value chain through strong partnerships with key national institutions, sectoral associations, and stakeholders in both the domestic and international private sectors. The signing ceremony included Lieutenant General Engineer Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Mr. Alaa Farouk, Minister of Agriculture and Land Reclamation, and Mr. Patrick Jean Gilabert, Regional Representative of the United Nations Industrial Development Organization (UNIDO) in Egypt. The event was also attended by Dr. Martino Melli, Head of the Italian Agency for Development Cooperation in Egypt, as well as representatives from industrial chambers and the export councils for the apparel and textiles sectors.
In her speech during the signing ceremony, H.E. Dr. Rania A. Al-Mashat emphasized that the partnership reflects the critical role of economic diplomacy and multilateral cooperation in supporting Egypt's economic development efforts, driving growth, and creating employment opportunities. She further highlighted the integration between bilateral development partners, particularly the Italian Agency for Development Cooperation, which funds the project, and its implementation by UNIDO.
The Minister of Planning, Economic Development, and International Cooperation highlighted that the successes achieved over decades of collaboration with development partners in implementing projects across various sectors have paved the way for future cooperation. These achievements underscore the state's clear vision for leveraging international partnerships to bridge development gaps in key sectors.
In this context, H.E. emphasized the significant contribution of the agriculture and industry sectors to the national GDP. The agriculture sector contributes approximately 12% and is one of the most impactful sectors in terms of employment, while the industry sector accounts for 14% of the GDP. H.E. also noted the support provided to various sectors through development partners, particularly in efforts to localize industries and enhance climate change adaptation in agriculture. This includes the use of climate-resilient seeds and the expansion of early warning systems, which play a crucial role in strengthening production chains.
The Minister explained that the project aligns with the Egyptian government’s objectives and efforts under the National Program for Economic and Structural Reform, which targets the real economy. This program includes several key pillars, such as enhancing the competitiveness of the Egyptian economy, improving the business environment for the private sector, and increasing investment rates. These efforts aim to boost the contribution of real economy sectors, particularly agriculture and industry, to overall economic output. The project also supports local value chains and contributes to Egypt’s integration into global value chains.
Additionally, H.E. highlighted that cooperation with the Italian side reflects the strength of the bilateral partnership under the broader framework of strategic relations between Egypt and the European Union. This collaboration is part of the "Mattei Plan," which aims to strengthen Italian-African relations, and serves as a practical application of the plan’s objectives. Moving forward with the second phase of the project demonstrates the sustainability of the initiative, building on the success achieved in the first phase.
The Minister further emphasized that all projects and partnerships with development partners are based on the principle of national ownership. The Ministry of Planning, Economic Development, and International Cooperation is committed to formulating projects and programs with international partners that address Egypt’s development needs.
The project aims to enhance and expand the environmental, economic, and social sustainability of the Egyptian cotton value chain. Building on the success of the first phase of the Egyptian Cotton Project (AID 11084) and leveraging strategic partnerships with Egyptian institutions, agricultural cooperatives, and both domestic and international private sector entities, this initiative seeks to broaden the impact of the project. The project has three main objectives: Support Egyptian cotton farmers by improving access to sustainable supply chains, achieved through upgrading cotton farming practices in key growing regions; Promote value addition and recycling by encouraging innovation, facilitating technology transfer, and attracting new investments; and Develop skills and knowledge to enhance the quality and sustainability of the Egyptian cotton value chain.