Could the SCZone be the gateway for Ukrainian grain? Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone (SCZone) as a potential hub for Ukrainian grain storage and re-export to Africa during a high-level meeting in Cairo with Ukrainian Agrarian Policy and Food Minister Vitaliy Koval and senior officials, according to a ministry statement. She also invited international partners to visit the area to explore its potential as a logistics and manufacturing hub.

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The move comes amid ongoing disruptions in the wheat market related to the Russia-Ukraine war, with Russia’s wheat harvest expected to have declined to 83 mn tons in 2024, down from 92.8 mn tons in 2023. Russian farmers ditching wheat to sow higher-yield crops may reduce the country’s 26% share of the global wheat market and inflate wheat prices, especially for major buyers like Egypt.

Ukraine also wants to set up its own logistics zone: Koval, for his part, noted that Ukraine is interested in establishing a logistics zone in Egypt that would be a center for Ukrainian exports to the rest of Africa, amid a broader expansion of economic and trade relations between the two countries.

ALSO- Egypt and Ukraine signed cooperation agreements on trade standardization, specifications, and quality and an MoU in the space sector.

All part of the gov’t silo expansion plan: The government has been expanding silo infrastructure to secure Egypt’s wheat and grain reserves, Al Mashat added, pointing toward the EGP 520 mn West Port Said Silo, which broke ground back in 2021. The facility, located in West Port Said Port, has a 100k-ton storage capacity and was designed to ease pressure on existing port silos in Damietta, Dekheila, Alexandria, and Safaga. The project was backed by USD 538 mn in food security funding from the UAE, the Saudi Fund for Development, France, and multilateral lenders.

There are more private sector investments on the way, with Feerum Egypt — the local arm of Polish grain silo company Feerum — reportedly in talks with Banque Misr and Banque du Caire to secure funding for its long-awaited silo factory in East Port Said. The project, now valued at EGP 2.5 bn, aims to deliver 1.4 mn tons of storage capacity over three years, with production slated to start in 2026.

The government has been working for years to increase wheat storage capacity and cut down on harvest losses. The Supply Ministry has plans to increase the country’s silo capacity to 5.3 mn tons through new silo construction and financing agreements. The expansion is key to ensuring food security, reducing waste, and reinforcing Egypt’s role as a regional grain hub.

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