SCZone, EHCSS to build US$153M grain complex in Egypt

EGYPT – The Suez Canal Economic Zone (SCZone) and the Egyptian Holding Company for Silos and Storage (EHCSS) are advancing plans for a major integrated complex designed to handle, process, and store grains.

The project will be constructed in two phases, with an initial investment of US$153 million. The first phase will cost US$75 million, while the second will require US$78 million.

The SCZone has allocated 1 million square meters for the facility, with 385,000 sqm located in the port area for 20 silos that will have a storage capacity of 4 to 6 million tons of grain annually.

The complex will also feature a 650,000 sqm logistics zone to process 648,000 tons of wheat flour and 252,000 tons of bran per year.

It aims to supply grain to East Africa and the Gulf, regions that heavily rely on the Suez Canal for grain shipments. Around 55 million tons of grain pass through the canal annually. Depending on investment involvement from local or strategic foreign investors, completion of the project is expected within two to two and a half years.

Once operational, the grain storage complex is expected to source up to 80% of its materials locally, ensuring greater self-sufficiency in grain storage production within three to five years.

This investment comes as part of a broader trend where Egypt seeks to optimize grain storage and reduce post-harvest losses as the country projects better harvest.

According to a recent report by the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA), Egypt is projected to produce more wheat in 2024-25, with estimates suggesting a total output of 9.2 million tonnes. 

The USDA noted that this marks an increase from the 8.87 million tonnes produced in the previous year.

The growth is attributed to the Egyptian government’s efforts to encourage a larger wheat planting area and implement strategies for higher yields.

Key to this expansion is the government’s attractive procurement prices, which have driven more farmers to plant wheat. Additionally, increased incentives have led to higher domestic production, crucial for a country that relies heavily on wheat imports to meet its local demand.

However, Egypt remains one of the world’s largest wheat importers, with estimated imports reaching 12.5 million tonnes for the 2024-25 season.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the WorldHERE.