EGYPT – Egypt has announced plans to establish an agro-industrial complex in the New Valley governorate as part of a US$7 billion public-private partnership with Chinese investors.
Mohamed Alaa, Secretary General of the Egyptian-Chinese Entrepreneurs Association, revealed this ambitious project, which aims to boost the country’s agricultural production, in an interview with Asharq Business on November 25.
According to Alaa, the proposed complex will span 420,000 hectares of newly cultivated agricultural land, with a primary focus on producing strategic crops such as wheat.
Other planned crops include corn, soybeans, sunflowers, and select fruits targeted for export to European markets. The government’s timeline sets cultivation to begin by September 2025, marking a significant stride in Egypt’s agricultural development efforts.
Speaking on the subject, Alaa Farouk, Minister of Agriculture, believes that this investment should contribute to strengthening local wheat production and gradually reducing the country’s dependence on cereal imports.
“Strengthening domestic wheat production is not just an economic priority, It’s a matter of national security. This project could be a transformative step in achieving self-sufficiency,” said Farouk.
Egypt remains the largest African importer of wheat, purchasing an estimated 12.6 million tonnes in the 2023/2024 marketing year, according to the Food and Agriculture Organization (FAO).
Despite producing an average of 9.1 million tonnes annually, local production only covers 45% of the country’s needs, with annual consumption averaging 21 million tonnes.
The FAO projects Egypt’s wheat harvest to rise by 3.2% in 2024/2025 to 9.4 million tonnes, but the gap between demand and supply persists. The New Valley project aims to address this disparity by increasing domestic production capacity while diversifying agricultural outputs.
With agriculture contributing 10% to Egypt’s GDP, despite arable land covering less than 5% of its territory, the initiative aligns with the government’s broader strategy to attract investment and enhance food security.
The initiative also seeks to revitalize the New Valley governorate, an area with untapped agricultural potential.
According to Alaa, the proposed complex is expected to incorporate advanced processing facilities, beyond crop production, enabling value addition and job creation.
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