Egypt’s military to take over from GASC in managing strategic food imports

EGYPT – The Egyptian military’s Mostakbal Misr Agency for Sustainable Development has been designated as the sole entity responsible for importing strategic food commodities, including wheat.

The transition, outlined in a letter from Egypt’s Ministry of Supply to Russia’s Minister of Agriculture, marks the end of the decades-long role played by the General Authority for Supply Commodities (GASC).

Egypt, one of the world’s largest wheat importers, depends on imports to sustain its subsidized bread program, which supports nearly 70 million citizens.

Traditionally, GASC had handled this vital function, establishing itself as a trusted player in the global wheat trade. Mostakbal Misr is little known in the global world of wheat trading.

Established in 2022 by presidential decree, Mostakbal Misr initially focused on land reclamation projects. However, its scope has since expanded to include critical sectors of Egypt’s economy, reflecting the growing influence of military-affiliated businesses under President Abdel Fattah al-Sisi.

The agency has begun taking over projects from both civilian institutions and other military organizations.

In May 2022, it said it intended to lower Egypt’s wheat imports bill, by supplying about 1 million metric tons of local wheat to the government in 2024.

But this year, the local harvest only reached 3.42 million tons by closure in August, marginally increasing from 3.41 million tons in 2023 and even less than the 3.7 million tons supplied to the government by farmers in 2022, data from Egypt’s supply Ministry.

In November, the agency attempted its first direct procurement of wheat and vegetable oil, aiming to streamline processes through direct purchase agreements alongside international tenders. Yet, procedural ambiguities created confusion among traders, delaying the purchases.

A Supply Ministry letter reassured stakeholders of the agency’s financial capacity to manage such large-scale operations, highlighting a Cabinet decision to activate Mostakbal Misr’s role in unified procurement. Despite these assurances, traders remain cautious.

Impact on the wheat market

The move has already sent ripples through the global wheat market. GASC’s established tender system, developed over decades, was renowned for its transparency and reliability.

In contrast, Mostakbal Misr’s relative inexperience raises concerns about market disruptions and the potential for increased risks in high-value transactions.

“Trust is a crucial element in international trade,” said a German trader familiar with GASC’s operations. “While the new agency may eventually establish credibility, the short-term transition could face hurdles.”

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