Egypt + EU ink EUR 90 mn agreement to bolster grain storage and logistics infrastructure

Egypt + EU sign EUR 90 mn funding to modernize wheat storage: Egypt has signed a EUR 90 mn concessional financing agreement with the European Commission to support food security, grain storage and logistics infrastructure, according to a statement. The money will come from the European Investment Bank and will help modernize Egypt’s wheat storage under the National Project of Silos (NPS), which aims to build more silos and expand capacity across 17 governorates, as well as reduce waste that sometimes reach up to 15%.

More incoming: The NPS is set to receive additional financing soon, with an additional EUR 100 mn from the EU and EUR 110 mn in soft financing from the World Bank.

All eyes on wheat in Egypt: The agreement aims to enable GASC to enhance its import capacity and bolster wheat storage efficiently. This marks the second time GASC has received funds to bolster food security after inking a USD 700 m loan agreement in February with the Islamic Trade Finance Corporation.

Soaring imports? The government is planning to source more wheat locally in a bid to cut wheat imports this year, after the country’s total wheat imports hit a 10-year peak at 14.2 mn tons in 2024, marking a 31.5% y-o-y increase. It is currently aiming to buy 4 mn tons of local wheat in 2025, an 11% y-o-y increase, with plans on importing some 6 mn tons of wheat from abroad, a 3.3% y-o-y drop from the year prior, Egypt’s Supply Minister Sherif Farouk said earlier this month. The country’s total wheat consumption in 2024 reached 20 mn tons and is expected to remain at the same level in 2025.