Global supply chain issues are forcing Egyptian exporters to make some tough calls. With freight and container ins. costs suddenly jumping by USD 2.5k-3k per shipment, many companies have simply paused sending goods to the Gulf and East Asia, Ahmed Zaki, secretary-general of the Exporters Division at the Federation of Egyptian Chambers of Commerce, tells EnterpriseAM.

A heavy blow: It is not good news, especially since exports to the Gulf — mainly food and engineering goods — were worth around USD 9 bn last year.

Pivoting to land routes: To survive the immediate crunch, some exporters are getting creative, ditching sea routes and pivoting to land transport through Jordan and Jeddah, which is saving them between USD 1.5k-1.9k per trip.

But as Zaki puts it, chances are “born from the womb of crisis.” While the Gulf market slows down, massive new doors are opening in Europe and Africa. European markets are currently struggling with heavy delays from their usual suppliers in China, India, and East Asia. African nations are also facing similar headaches with Chinese shipments. Because of this, both regions are now sending a huge surge of export orders our way.

Why this matters

This sudden boom isn’t just happening because Egypt’s currency makes goods cheaper. It is really about proximity and reliability. While other global routes are tangled up in delays, Egypt is close enough to ensure that products — especially food — actually arrive on time. Ultimately, this massive shift toward Europe and Africa is expected to easily make up for the revenue lost in the Gulf, we’re told.

Behind the scenes, the Central Bank of Egypt is keeping a close eye on the money, Zaki tells us. The CBE is ensuring that all the new USD coming in from these exports are channeled directly through the banking system, which prevents black market currency issues and keeps the local market perfectly stable as the country navigates this unexpected boom.

What’s next?

Air freight fees on pause: The International Federation of Freight Forwarders Associations has asked the Finance Minister to temporarily pause certain air freight fees — namely the Advanced Cargo Information system — hoping to lower transport costs and keep everyday prices from spiking at home.

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