After repeated supply shocks since 2022, Egypt is building silos to hold more of its wheat at home instead of relying only on global markets. Modern silo capacity has grown to 3.9 mn from 1.2 mn tons in 2014, with 6 mn targeted by 2030, the Egyptian Holding Company for Silos and Storage tells EnterpriseAM. Private firms including Hassan Allam, Orascom Construction, and Samcrete are taking a share of the work, and lenders including the World Bank are covering part of the cost.

The end of buying on demand? The disruption to wheat imports means just-in-time supply should give way to more diverse sourcing, Amandeep Kaur Ahuja, a Dubai-based geopolitical risk consultant focused on the Middle East and North Africa, tells EnterpriseAM. “But it’s too early to call it over,” she says. New facilities take months or years to build, and they need heavy capital and ongoing maintenance. (Egypt also has a separate ambition to become a regional grain re-export hub, which we explored in June.)

The current buffer

Months of cover: Current silo capacity gives the state the flexibility “to hold reserves covering more than eight months of total wheat consumption,” Ashraf Sadek, managing director and CEO of the holding company, tells EnterpriseAM. Based on the USDA’s forecast (pdf) of about 20.7 mn tons of consumption in 2026/27, 3.9 mn tons of silo capacity covers a little over two months. Silo capacity stood at 3.3 mn tons in 2023, when earthen open-air yards known as shona and other warehouses held another 1.4 mn tons, according to a joint World Bank, FAO, and WFP report (pdf). Imported wheat for subsidized bread goes into the silos, while local wheat has been stored in both.

Less grain lost: Grain stored in open-air shona has cost the state 10-15% of the harvest, while losses in modern silos are close to zero, Sadek says. The World Bank puts the reduction in losses from silos at 40-50% compared to traditional storage. Egypt has 69 state-owned silos, 50 of which belong to the holding company, “and spreading them across the country cuts transport and fuel costs,” Sadek tells EnterpriseAM. The network supplies mills with about 24.2k tons of wheat a day. Sensors track the stock, and with the World Bank and other donors, Egypt is upgrading its information system to link silos, mills, and bakeries.

The holding company aims to add 1mn tons of capacity in FY 2026/27, Sadek tells EnterpriseAM. He told Al Borsa in August that the company is investing around EGP 7.5 bn to add 875k tons of grain storage capacity. Its own 44 silos held 2.56 mn tons of capacity as of May, Sadek says. “The current capacity of each is about 58k tons on average,” he adds. Another 50 silos with a combined capacity of 1.5mn tons are under construction under the National Silos Project.

Beyond the holding company: The rest of the capacity sits outside the holding company. That’s about 1.3 mn tons, including 500k tons of capacity at state agency Mostaqbal Misr, built in 5k-ton silo units at its industrial city in the New Delta, the presidency says. They’re part of a 300-silo, 2 mn ton program with China’s Famsun.

Stock and purchasing

The government stocked up on wheat in 2025/26. State wheat imports jumped 52% in that marketing year, which runs from July to June, to bolster reserves against price shocks from regional conflicts, according to the USDA’s latest Grain and Feed Update (pdf). It bought just over 5 mn tons of local wheat in the 2026 procurement season (April to August), beating its target and up about 30% from 4 mn tons in 2025. With that stock and a 10 mn ton harvest, the USDA expects imports to fall about 23% to 12 mn tons in 2026/27. Storage capacity has helped procurement before: purchases in 2025 beat the five-year average on better prices and more storage capacity, the USDA said in March (pdf).

Stock as leverage: Physical stock keeps food within reach in a crisis, Ahuja says, which matters in a country where wheat makes up more than 30% of the typical diet. A large stock also lets Cairo draw on its own reserves instead of paying high premiums for spot purchases, and with enough storage capacity, Egypt could negotiate from a stronger position. “But that leeway won’t protect it from currency swings or liquidity crises,” she says.

Who builds it, who pays

The build-out is creating work for contractors and manufacturers, Sadek says, and increasing demand for locally made silo parts that save hard currency on imports. Feerum Misr, a Samcrete venture to make silo components locally which brings in technology from Poland’s Feerum, plans to make 80% of silo components locally within three years, the Supply Ministry says. It has committed to supplying parts for 1.4 mn tons of capacity at fixed prices in local currency. Its factory in East Port Said has yet to start production, we understand.

Three of the four planned warehouses for staples, including wheat, have been built. The state canceled the Sharqia site, Hossam El Garrahy, acting chairman of the Internal Trade Development Authority (ITDA), tells EnterpriseAM. Fayoum, built by Orascom Construction for EGP 2.24 bn has been running at full capacity since April 2026. Suez, developed by Samcrete, and Luxor are finished and due to open before the end of the year, he says. Hassan Allam Strategic Warehouses owns and runs the Luxor site. All three come with 35-year operating terms. The warehouses stock more than 25 basic goods, including oil, rice, sugar, and ghee. A digital network links all warehouses, letting the ministry track stock in every governorate.

Who’s lending: The World Bank is financing 700k tons of new and upgraded silo capacity, according to its 2025 report. France’s AFD and the EU are backing another 375k tons. In September, Farouk discussed funding a grain logistics hub with the European Investment Bank. The Supply Ministry is also in talks with the Islamic Development Bank and the International Islamic Trade Finance Corporation to fund new silos and edible oil tanks.

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