Egypt and EU sign US$94M agreement to bolster grain storage, logistics

EGYPT – Egypt has secured a €90 million (US$93.9 million) soft funding agreement from the European Commission to enhance its grain storage and logistics infrastructure.

The deal, facilitated through the European Investment Bank (EIB), is part of a broader Food Resilience Project aimed at improving the country’s food security.

This initiative also benefits from additional support from the European Union and the World Bank, bringing the total financing and grants for the project to €210 million (US$219.3 million).

The newly signed agreement will empower the General Authority for Supply Commodities (GASC) to enhance its wheat importation and storage capacity, ensuring a more efficient and resilient supply chain.

Despite being replaced as Egypt’s primary state grain buyer by the military-affiliated Mostakbal Misr at the end of 2023, GASC continues to receive financing to procure wheat. Earlier this year, on February 4, GASC secured a US$700 million loan from the International Islamic Trade Finance Corporation (ITFC) to further support food security efforts.

Beyond the recent European funding, Egypt is ramping up investments in grain storage facilities. The Suez Canal Economic Zone (SCZone) and the Egyptian Holding Company for Silos and Storage (EHCSS) are developing a state-of-the-art grain handling, processing, and storage complex with an initial investment of US$153 million.

To be completed in two phases, this facility aims to strengthen Egypt’s grain supply infrastructure and reduce post-harvest losses.

In addition, the Egypt Suez Canal Authority (SCA) is pursuing a strategic partnership with China’s FAMSUM to enhance Egypt’s agricultural infrastructure. 

FAMSUN, a global leader in agricultural engineering and technology solutions, specializes in developing strategic grain and oil storage silos using cutting-edge technology. Their collaboration with Egypt would underscore a shared commitment to advancing the nation’s agricultural sector and ensuring long-term food security.

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