USAID-SEED is supporting integration of MSMEs in selected value chains; including readymade garments (RMG). One of the identified constraints for MSMEs integration in value chains is lack of access to new fashion and design concepts.
RMG industry in Egypt is adopting cut and make (CM) business model with minimum linkages to fashion and design and high value added products. Manufacturers for local markets opted to copy designs from competitors or from high end market brands, producing lower quality versions of originals considering that there’s no intellectual property recognition for fashion designs in Egypt.
On the other hand, designers’ work is not much appreciated by industry, manufacturers don’t believe that they need to recruit designers. Furthermore, designers who took the lead to create their own collections suffer
lack of access to high quality fabrics, accessories, trims and findings in local market as well as discontinuity of available materials, which forces them to forecast their production quantities at very early stages of design and risk high financial obligations and makes their business vulnerable.
USAID-SEED is providing technical assistance to overcome this constrain by developing capabilities of The Fashion & Design Center (FDC) to better serve the needs of value chain stakeholders; especially MSMEs.
FDC is one of the technology centers under the Ministry of Trade and Industry (MTI). FDC offers unique education and training programs for fashion students that introduces every year a number of qualified graduates in the fashion and ready-made garment value chains in Egypt. The center is cooperating with Istituto Di Moda Burgoin Milan, Italy which is one of the world most reputable fashion institutes. FDC is targeting an increase of qualified designers working in the Fashion industry to upgrade Egyptian fashion and design to match International standards.
USAID-SEED Project in cooperation with FDC are implementing “Fashion Design Marketplace” program. The program will target three activity areas: First, building capacity of FDC and its students, second, creating linkages between FDC and RMG MSMEs to develop fashion designs and seasonal collections, and third, developing fashion concepts that suits both local and export markets which will deploy a multi-level approach to develop the Egyptian economy and promotes marketing of Egyptian RMG locally and internationally.
“Fashion Design Marketplace” program is designed to enhance capabilities of FDC students, help them to create connections with international fashion world. In addition, program will engage them with local RMG industry creating modern designs for both local and international markets, that will leverage MSMEs ability to market their products, generate revenues and employ more labors and professionals as their enterprises grow.
USAID’s Strengthening Entrepreneurship and Enterprise Development (SEED) in Egypt project is part of the United States – Government of Egypt Trade and Investment Promotion in Egypt (TIPE) Bilateral Agreement. This Agreement focuses on strengthening the development of micro, small and medium enterprises (MSMEs) and entrepreneurship. More specifically, the purpose of the SEED contract is to increase employment and income of MSMEs and entrepreneurs, especially those owned by women and youth in disadvantaged areas, by: (1) stimulating entrepreneurship and innovation; (2) enhancing formalization of private enterprises; (3) improving financial and non-financial services to MSMEs; (4) integrating MSMEs and entrepreneurs in progressive value chains; and (5) addressing enabling environment policy reform initiatives to facilitate MSME development that is aligned to the Government of Egypt’s (GOE) socio-economic development strategy.
SEED provides technical assistance, capacity building, and training to relevant stakeholders and counterparts in order to support the growth of MSMEs and promote entrepreneurship in Egypt. Stakeholders and counterparts include public sector reform champions, universities, BDS providers, mentors, business associations, investors, financial institutions, public organizations, MSMEs, and entrepreneurs. SEED will collaborate with other development partners (donors) and other USAID contractors to take full advantage of synergistic opportunities in achieving results. Special focus will be given to disadvantaged areas and population groups such as women and youth. Youth is defined for the purpose of this activity as individuals who are between ages of 15 and 29 years old.
