Egypt Signs €90 Million Agreement with European Commission to Boost Food Security and Wheat Storage

On Monday, Egypt and the European Commission officially signed an agreement worth 90 million euros ($93.9 million) in soft funding aimed at improving the country’s food security. This agreement, backed by the European Investment Bank (EIB), will focus on enhancing Egypt’s grain storage and logistical infrastructure, ensuring that the country can more effectively manage its wheat imports.
The funding is part of a broader initiative known as the Food Resilience Project, which is designed to bolster the nation’s ability to withstand food-related crises and promote long-term stability. In addition to the European Investment Bank, the project also enjoys the support of the European Union and the World Bank. The total combined grants and financing for the project now amount to 210 million euros ($219.3 million), which will be used to create more robust systems for importing, storing, and distributing essential food staples like wheat.
According to the Ministry of International Cooperation, this agreement will specifically enable the General Authority for Supply Commodities (GASC) to significantly enhance its capacity to import and store wheat more efficiently. GASC, which plays a key role in Egypt’s state-run grain procurement system, will benefit from upgraded facilities and more streamlined processes that will improve its ability to meet the country’s wheat demands.
This marks the second instance this year in which GASC has secured funding for wheat imports. This is notable, as GASC was replaced at the end of last year by Mostakbal Misr, a military-affiliated company, as Egypt’s official state grain buyer. Despite this shift in responsibility, GASC continues to play a pivotal role in securing wheat for the country. In early February, GASC also signed a significant agreement with the Islamic Trade Finance Corporation, securing a $700 million loan to further support Egypt’s efforts to strengthen food security.
Egypt holds the distinction of being the world’s largest importer of wheat, a staple crop that is primarily used to produce subsidized bread for millions of Egyptians. Ensuring stable wheat supplies is crucial for maintaining food affordability and preventing any disruptions in the bread supply, which is essential for daily life in the country.
The new agreement and the larger Food Resilience Project will go a long way in fortifying Egypt’s ability to secure and manage its grain supply, further enhancing its resilience against global food price fluctuations and other challenges.
(€1 = $1.04)