Ukraine to establish logistics hub in Egypt to boost grain exports, food security

EGYPT – Ukraine has announced plans to set up a logistics hub in Egypt to facilitate the export of Ukrainian agricultural products, including wheat, corn, and oilseeds, to one of Africa’s largest wheat consumers.

The initiative, revealed by Ukrainian Minister of Agriculture Vitaliy Koval during a visit to Cairo, was termed as strategic to strengthen Ukrainian agricultural trade ties with Africa.

Egypt, the continent’s leading wheat producer and importer, has seen a surge in demand for food and industrial needs, making it a key market for global suppliers.

For Egypt, the hub represents a step toward greater food security and economic resilience. As the country continues to grapple with rising wheat consumption and the need for stable supplies, partnerships with reliable suppliers like Ukraine will be crucial.

Ukraine, already a major player in Egypt’s wheat supply chain, seeks to deepen its presence by establishing a food processing center within the logistics hub. This move aligns with Kyiv’s broader strategy to move beyond raw material exports and add value to its agricultural products.

“Our task is to ensure that Ukrainian farmers do not just export raw materials, but also use special economic zones to process them,” said Mykola Nahorny, Ukraine’s ambassador to Egypt.

Ukraine has emerged as a critical supplier of wheat to Egypt, accounting for over 17% of the country’s total wheat imports in the 2023/2024 marketing year, according to data from the U.S. Department of Agriculture (USDA).

With Egypt importing 12.5 million tons of wheat during this period, Ukraine ranked second only to Russia in terms of market share.

The USDA projects that Egypt’s wheat consumption, already the highest in Africa, will continue to rise.

Demand is expected to increase by 150,000 tons in the 2024/2025 season, reaching nearly 20.7 million tons.

The initiative also highlights the growing importance of Africa as a destination for global agricultural exports. With its rapidly growing population and increasing food consumption, the continent is becoming a focal point for international trade and investment in the agricultural sector.

In 2023, Ukraine launched similar initiatives in Senegal and Nigeria, aiming to increase shipments of agricultural products and establish a stronger foothold in West Africa. These efforts reflect Ukraine’s ambition to diversify its export markets and reduce reliance on traditional trading partners.

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