Egypt launches EGP 1bn fund to revive distressed factories, textiles and garments included

The Central Bank of Egypt (CBE) and the Ministry of Industry have launched an EGP 1 billion fund that will take equity stakes in industrial companies facing financial or operational difficulties, with the aim of restoring their efficiency and long-term viability, Ahram Online reported on 2 October. Textiles and ready-made garments are among the sectors the fund will target.

The fund will invest directly in factories in food industries, engineering, chemicals, textiles and ready-made garments, pharmaceuticals and building materials. It is aimed at plants that have underused assets and production capacity, and will apply restructuring plans that can include loan adjustments, new capital, efficiency improvements and stronger corporate governance.

Five banks contribute to the fund: the National Bank of Egypt, Banque Misr, Arab African International Bank, the Agricultural Bank of Egypt and the Export Development Bank of Egypt. Egypt's Financial Regulatory Authority approved it as a closed-ended private-equity fund offering one billion units at a nominal value of EGP 1 each, and subscriptions opened on 4 October 2026, according to the report. CI Capital's fund management arm will manage the investments, selecting companies on the basis of feasibility studies.

Factories that want to benefit apply through the Ministry of Industry's manufacturers' support platform, where applications are assessed. Industry Minister Khaled Hashem said he hoped the fund would bring idle production capacity back online, create jobs and strengthen local supply chains.

"The banking sector spares no effort in encouraging investment and production," CBE Governor Hassan Abdalla said.

What it means for Egyptian exporters

For spinning, weaving and garment plants held back by debt or a lack of capital, a fund that can inject equity and restructure loans offers a possible route back to full production. Restarted capacity could take on export orders and deepen local yarn and fabric supply. Textile companies in difficulty should check eligibility through the ministry's platform; at EGP 1bn, the fund will have to be selective.