Egypt has signed off on its first integrated silk production centre, a 250-feddan project in New Valley that aims to produce 25 tonnes of raw silk within four years. The move is part of a localisation strategy designed to reduce imports, save foreign currency, and build a new rural employment base.
Backed by the Ministries of Local Development and Agriculture, the El Kharga hub will integrate the full value chain from mulberry cultivation to reeling and marketing. A community model will distribute silkworm eggs and mulberry leaves to households under supervision, creating income opportunities for youth and women.
Egypt currently imports nearly all of its silk inputs. Local production will allow Cairo to offset part of a costly import bill at a time when the country is under pressure to preserve scarce foreign currency reserves. Globally, silk imports reached $1.45bn in 2023, including $321m in raw silk. Even a modest substitution at home could free up millions in hard currency each year.
The international market is concentrated: China ($232m) and Vietnam ($100m) dominate exports, but both have seen volumes soften since 2022. This creates an opening for new entrants to capture niche demand, especially in Europe. Buyers in Romania ($63m imports) and Italy ($31.8m exports) are potential early partners for Egypt if quality standards are met.
Beyond the trade angle, the project has a strong development narrative. Officials expect thousands of direct and indirect jobs, particularly for rural youth and women engaged in home-based cocoon rearing. This strengthens the social case for the project while providing Egypt with a new export story tied to sustainability and community inclusion.
Sericulture requires intensive water management and rigorous quality-control infrastructure; failure to deliver international grading standards could cap Egypt’s prospects. Buyers are also increasingly demanding sustainability certifications, which Egypt will need to integrate from the outset.
Still, with government backing and a replicable model across governorates, the El Kharga silk centre represents a small but strategic bet: turning an ancient craft into a modern value chain that cuts imports and opens premium export niches.
