Egypt and the EU Commission on Monday signed a loan worth €90 million for the project “Egypt Food Resilience”, supported by the EU and the European Investment Bank.
The agreement was signed by Minister of Planning, Economic Development and International Cooperation Rania el Mashat, Minister of Supply and Internal Trade Sherif Farouk and EU Commissioner for the Mediterranean Dubravka Šuica, on behalf of the European Investment Bank (EIB).
The development financing agreement for the Food Resilience Project in Egypt, worth €90 million, is provided by the EIB for the General Authority for Supply Commodities (GASC), according to a statement issued by the Ministry of International Cooperation on Monday.
The project aims to increase and modernize grain storage and logistics infrastructure in the Arab Republic of Egypt, supported by the National Silos Project, including the General Authority for Supply Commodities’ (GASC) purchase of imported wheat from international markets for milling purposes.
The project will be funded by other partners, including a €100 million grant from the European Union and a concessional financing of €110 million from the World Bank.
Mashat stressed the importance of achieving food security as one of the main pillars, adding the government works on securing the strategic needs of the state and hedge against global fluctuations and geopolitical tensions that affect supply chains.
She added that the Ministry of Planning, Economic Development, and International Cooperation also works on strengthening international partnerships to support the national silos project, and continuing efforts to increase the percentage of self-sufficiency in crops through the targets of the Economic and Social Development Plan.
She explained that the agreement signed is a continuation of the efforts made with multilateral and bilateral development partners to strengthen Egypt’s regional and international position as a logistical center for storing and trading grains, as a number of agreements were signed earlier with the World Bank and the African Development Bank to support food security efforts in Egypt.
Additionally, a grant from the European Union was signed during the investment conference last June, worth €56.7 million, to develop the storage capacities of wheat silos in Egypt and build additional capacities.
In 2021, the foundation stone of the West Port Said silo, with a storage capacity of 100,000 tons was laid, funded by development partners.
For his part, the minister of supply and internal trade said that the signing of the Food Resilience Project protocol represents a strategic step towards enhancing food security in Egypt, as it contributes to the development and modernization of grain storage infrastructure and associated logistics.
Farouk confirmed that this concessional financing, supported by the European Investment Bank, will enable the General Authority for Supply Commodities (GASC) to improve its capacity to import and store wheat more efficiently. The minister also affirmed that the project complements the ongoing efforts within the national silos project and comes within the framework of supporting international partnerships aimed at achieving the sustainability of Egypt’s food security system.
“This investment tackles a key bottleneck for more efficient and resilient food supply in Egypt,” said Gelsomina Vigliotti, European Investment Bank Vice President. “The new silos and improved logistics will help reduce food losses, strengthen food security and improve affordability of bread for millions of Egyptians,” Vigliotti added.
“This investment reflects the EU’s strong commitment to supporting Egypt’s efforts to enhance its food security,” said Angelina Eichhorst EU Ambassador-Designate and Head of the EU Delegation to Egypt. “This project will have a significant positive impact on the lives of millions of Egyptians, especially the most vulnerable.”
