Algeria Begins Cotton Export to Egypt, Diversifying Trade Portfolio
Image: Ennahar
Takeaway
The commencement of cotton exports to Egypt presents a strategic opportunity for investors in the Algerian textile sector. Companies like SARL MPFP, specializing in fiber production, are positioned to capitalize on growing export demand. Investors should monitor trade agreements and infrastructure developments to assess long-term growth potential.
Algeria has commenced exporting cotton filling material to Egypt, signaling a diversification of its export portfolio. The announcement was made during a visit by the Minister of Trade and Export Promotion, Kamel Rezig, accompanied by the Governor of Tlemcen, Youssef Bechlaoui, to the SARL MPFP company, a specialist in manufacturing polyester fibers. The event took place in Tlemcen, marking the official launch of the export operation.
This cotton export to Egypt reflects Algeria's ongoing efforts to strengthen its economic ties with Egypt. In November 2025, Egyptian Prime Minister Mostafa Madbouly stated that Egypt and Algeria aim to boost bilateral trade to $5 billion in the coming years. During the ninth session of the Egyptian-Algerian Joint Higher Committee in Cairo, the two countries signed a series of cooperation agreements. Currently, trade between the two countries stands at around $1 billion, an 18% increase. In 2024, Algeria's exports to Egypt totaled $23 million, with primary products including acyclic alcohol derivatives ($9.3 million), hydrogen ($3.4 million), and semi-finished iron ($3 million).
Historically, cotton was introduced to Algeria by Andalusian migrants and cultivated in areas like Mitidja and Mostaganem. The Algerian for Textile Industries TAYAL, S.P.A. was launched in November 2013 and can produce 36,000 tons of yarn, 50 million meters of woven fabric, 5,000 tons of knitted fabric, and up to 30 million ready-to-wear garment items per year. In 2024, Algeria exported $7.33 million of cotton, ranking as the 96th largest exporter of cotton globally. The main destinations for these exports were Turkey ($3.77 million), Tunisia ($2.16 million), and Egypt ($937,000).
The cotton export initiative is expected to benefit both Algerian producers and Egyptian manufacturers, potentially impacting supply chains and trade flows between the two nations. The textile industry in Algeria is a strategic sector with a promising future. In 2024, Algeria imported $74.7 million of cotton, with primary sources being Turkey ($19.7 million), China ($13.3 million), Brazil ($9.13 million) and Egypt ($8.76 million).
Looking ahead, further trade agreements and partnerships between Algeria and Egypt are anticipated, particularly in key industrial and development sectors. The ninth session of the Egyptian-Algerian Joint Higher Committee held in Cairo on November 26, 2025, resulted in the signing of 18 agreements, memorandums, and cooperation programs across multiple sectors, including energy, trade, and infrastructure. These agreements signal a commitment to strengthening bilateral relations and leveraging the economic potential of both countries.