International Trade Centre, ITC MENATEX II, 2024-2027 International Trade Centre, ITC MENATEX II, 2024-2027 - MENA Textiles NEW The Textiles¬ and Clothing sector (T&C) is an important sector for Egypt, Morocco, Tunisia and Jordan in terms of employment and export. It represents the second largest industrial sector in all four countries and is traditionally an important employer for low¬skilled workers, in particular women. It is also a sector identified as a priority sector by national policies and strategies. Even if there is fierce competition in the apparel sector from Turkey, China and other Asian countries, there is a recent trend of nearshoring that benefit the MENA-countries. The relevance of MENATEX II is therefore considered to be high in terms of contributing to international trade, productive employment and greening of the industry. 

Sweden has been supporting ITC MENATEX phase I, 2018¬2023, with a good experience in terms of results, cooperation and quality of implementation and reporting. Phase I covered Egypt, Morocco, Tunisia and Jordan and a regional component to enhance regional collaboration. The same set¬up will be continued in the second phase. The program is co¬financed with Switzerland, SECO, that also covers a global component with countries in Central Asia called GTEX/ MENATEX. The overall expected impact of the phase II is to contribute to economic growth and poverty reduction through sustainable trade and decent job creation along the T&C value chain. This will be reached through increased competitiveness of T&C enterprises through sustainable trade and more effective ecosystem able to direct the T&C sector towards systemic change addressing sustainability and circularity. The Embassy assesses that the second phase of ITC MENATEX will contribute to poverty reduction mainly through creating more jobs and incomes to people, including for low¬skilled segments and at the same time contribute to greening of the industry. Textil¬ och klädindustriesektorn (T&C) är en viktig sektor för Egypten, Marocko, Tunsien och Jordanien i termer av såväl sysselsättning som export. Sektorn representerar den näst största industrisektorn i samliga fyra länder och är traditionellt en stor arbetsgivare för lågutbildad arbetskraft, särskilt för kvinnor. Det är även en prioriterad sektor för nationella policies och strategier. Även om det råder stor konkurrens från länder som Turkiet, Kina och andra asiatiska länder, finns en pågående trend att göra inköp längs med värdekedjan närmare sin hemmamarknad , sk "nearshoring". vilket gynnar MENA¬länderna. MENATEX II har således hög relevans för att bidra till internationell handel, produktiv sysselsättning och en mer miljö¬ och klimatvänlig produktion. 

Sverige har stöttat ITC MENATEX fas I, 2018¬2023, med goda erfarenheter i termer av resultat, samarbete och kvalitet av implementering och rapportering. Fas I täckte Egypten, Marocko, Tunisien och Jordanien samt en regional komponent för att öka regionalt samarbete. Samma upplägg kommer att fortsätta under fas II. Programmet är samfinansierat med Schweiz, SECO, som också täcker en global komponent med länder i Centralasien som kallas GTEX/ MENATEX. Den övergripande förväntade resultatet av fas II är att bidra till ekonomisk tillväxt och fattigdomsminksning genom hållbar handel och anständiga jobb längs med textil- och klädvärdekedjan. Det kommer att uppnås genom ökad konkurrenskraft av T&C företagen genom hållbar hadel och mer effektivt ekosystem som främjar systemförändirng mot mer hållbar och cirkulär sektor. Ambassaden bedömer att MENATEX fas II kommer att bidra till minskad fattigdom främst genom att skapa fler jobb och högre inkomster till människor, särksilt för lågutbildade segment och samtidigt bidra till en mer miljö¬ och klimatvänlig industri. The overall objective with the intervention is to contribute to economic growth and poverty reduction through sustainable trade and decent job creation along the T&C value chain. Increased exports of quality products will lead to retention of employment in the T&C sector and creation of higher value-added jobs, including in supporting sectors such as environmental technology and recycling. 

Through economic growth and employment creation, the program will have both indirect and direct effects on poverty reduction. Increased income and job creation (increased GDP growth rates) through expanded opportunities to participate in trade and value chains. That will be supported by strengthening the competitiveness of enterprises in terms of sustainable production, both in terms of greening the industry and in terms of focusing on women and youth.

More specifically, the program will focus on contributing to that the four MENA-countries Egypt, Jordan, Morocco and Tunisia stay on top of the emerging market requirements for the T&C sector by moving towards greener practices and able to adhere to strict forthcoming EU regulations for T&C products sold in Europe. Since the T&C sector is a key sector for exports and employment in all four countries, the program will ensure that employment is retained and new higher value added decent jobs are being created through exports of quality, socially and environmentally-conscious products. The program will also contribute to required systemic change of the T&C industry towards more environmental sustainability, circularity and digitalisation.  

There will be two overarching outcomes, one focusing on SME-level and the other one on the overall ecosystem. Outcome 1: Increased competitiveness of T&C enterprises through sustainable trade and Outcome 2: More effective ecosystem able to direct the T&C sector towards systemic change addressing  sustainability and circularity