Egypt has signed a €90 million loan agreement with the European Commission to enhance its food security infrastructure. The agreement, signed during the visit of Dubravka Šuica, the European Commissioner for Mediterranean Affairs, focuses on improving Egypt’s grain storage capacity and logistics. This agreement involves funding from the European Investment Bank (EIB) for the Egyptian General Authority for Supply Commodities (GASC).
The agreement was signed by Dr. Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, and Dr. Sherif Farouk, Egypt’s Minister of Supply and Internal Trade, alongside Dubravka Šuica, on behalf of the European Investment Bank. Key representatives from the European Union and Egypt were present at the signing.
Strengthening Grain Storage Infrastructure and Logistics
The project aims to modernize Egypt’s grain storage and logistics infrastructure, significantly improving the capacity of the GASC to efficiently import and store wheat. This initiative is aligned with Egypt’s National Silos Project, which is designed to increase the nation’s ability to handle strategic food reserves, especially wheat, which is critical to Egypt’s food security.
Dr. Rania A. Al-Mashat emphasized that food security is one of the government’s key priorities to ensure the country’s strategic needs are met while also safeguarding against global supply chain disruptions and geopolitical tensions. “This agreement is a continuation of our efforts with international development partners to position Egypt as a regional hub for grain storage and trade,” she said.
She also noted that this agreement complements other initiatives Egypt has undertaken with international partners like the World Bank and African Development Bank to strengthen food security and improve storage capacity. Earlier, the European Union also contributed a €56.7 million grant in June 2024 to improve wheat storage facilities in Egypt.
Building on International Partnerships for Food Security
This loan is part of a broader effort by Egypt to increase its grain storage capacity and improve its food security resilience. Dr. Al-Mashat highlighted the importance of such international partnerships, stating that the funding from the European Investment Bank would enable Egypt to significantly upgrade its grain storage and logistics infrastructure.
Dr. Sherif Farouk, Minister of Supply and Internal Trade, expressed his satisfaction with the project, noting that the agreement represents a strategic step towards bolstering Egypt’s food security. “This project will enable us to import, store, and distribute wheat more efficiently, improving food security across Egypt,” he said. He also stressed that this initiative will complement the broader National Silos Project and support Egypt’s ongoing efforts to ensure sustainable food systems.
Enhancing Food Supply Chain Sustainability
Gelsomina Figioti, Vice President of the European Investment Bank, commented: “This investment enhances Egypt’s food supply chain sustainability by improving grain storage capacity and logistics. The new silos and upgraded services will reduce food losses, improve food security, and help make bread more affordable for millions of Egyptians.”
Angelina Eichhorst, the European Union Ambassador to Egypt, also praised the project, saying: “This investment underscores the European Union’s strong commitment to supporting Egypt in enhancing its food security. The project will have a significant positive impact on the lives of millions of Egyptians, especially those in need.”
A Step Forward in Strengthening Egyptian-EU Relations
With this €90 million investment, Egypt is poised to significantly improve its grain storage infrastructure and strengthen its position as a critical player in global food security efforts. The project is also expected to create long-term benefits for Egypt’s economy by reducing food wastage and enhancing the affordability of basic food items for the population.
This agreement reinforces the ongoing collaboration between Egypt and the European Union and marks another milestone in their shared efforts to ensure food security and sustainable economic development in the region.
