The Egyptian Cotton Project – Phase II

In partnership with leading Sistema Italia companies, the Italian Agency for Development Cooperation and UNIDO continue to support the sustainable production and commercialization of Egyptian cotton, promoting compliance with internationally recognized sustainability standards and certification schemes increasingly required by global retailers and major fashion brands.

Reading time:

1 min

The project builds on the achievements of the first phase of the Development of Egypt’s Long and Extra-Long Staple Cotton Value Chain initiative and is founded on strong partnerships with Egyptian institutions, agricultural cooperatives, and national and international private sector stakeholders. Its objective is to further strengthen the strategies already launched, particularly through capacity-building activities across the entire cotton value chain.

Egyptian cotton is internationally recognized as one of the world’s highest-quality natural fibres. At the same time, however, its production is facing increasing scrutiny regarding sustainability. Despite its global reputation, Egyptian cotton has gradually lost market share in the premium cotton segment due to growing international competition, the high fragmentation of the sector, and a global shift towards medium-staple fibres. Moreover, the textile industry is becoming increasingly attentive to the environmental and social impacts of production. While this represents a significant market opportunity, it also poses major challenges for primary producers, who are required to comply with increasingly demanding sustainability standards.

In this context, the Egyptian cotton value chain must transition towards more sustainable and competitive production models based on innovation, green technologies, human capital development, transparency, traceability, and circular economy approaches.

In partnership with key Sistema Italia companies, including Filmar and Gruppo Albini, both operating in Borg El Arab, the Italian Agency for Development Cooperation (AICS), together with UNIDO, is supporting the strengthening of cotton production and marketing in line with internationally recognized sustainability principles and certification schemes increasingly required by global retailers and leading fashion brands. Through technical assistance and training, the project supports producers in adopting environmentally and socially sustainable practices while promoting transparency, traceability, circularity, and the implementation of the Better Cotton Standard in Egypt. This approach contributes to improving the environmental and social performance of the sector, strengthening access to international markets, and creating greater economic and social opportunities for local communities.

General Overview

  • Duration: 24 months (October 2024 – September 2026)
  • Geographical coverage: Damietta and Kafr El Sheikh Governorates
  • Budget: €1.5 million
  • Implementing partners: Ministry of Industry; Ministry of Education; Cotton Research Institute; Textile Export Council; Cotton Egypt Association; Cotton Arbitration & Testing General Organization (CATGO)
  • Target groups / beneficiaries: At least 6,000 direct beneficiaries, including researchers, cotton farmers, producer associations, traders, technicians, textile companies, and students enrolled in technical education and vocational training programmes, with particular attention to young people and women.

 

Overall Objective: To strengthen Egypt’s cotton industry by increasing sustainability, enhancing value addition, and developing resilient partnerships across the entire value chain.

Specific Objective: To improve the sustainability, inclusiveness, and value creation of Egypt’s cotton value chain.

Component 1 – Capacity Building for Cotton Farmers

  • Regenerative agriculture
  • Organic farming
  • Farm management tools
  • Financial literacy

Component 2 – Capacity Building for Cotton Processing Companies

  • Technical assistance
  • Business development support
  • Market analysis
  • Technological innovation

Component 3 – Youth Employment

  • Updating technical education curricula
  • Company internships
  • Training on circular economy approaches

  • Smallholder cotton farmers are trained in sustainable, scalable, and market-oriented agricultural practices.

  • Egyptian cotton processing and textile companies strengthen their capacities in innovation, green technologies, circular economy approaches, and human capital development, enabling them to meet the requirements of international markets.

  • Youth employment is enhanced across Egypt’s cotton textile value chain by equipping young people with the knowledge, technical skills, and professional competencies needed to promote sustainability, increase productivity, and strengthen the sector’s global competitiveness.

Last update: 26/07/2026, 16:39