CAIRO – Fitch Solutions forecasted a strong growth in Egypt’s spending on food to be maintained despite a slight deceleration to reach 9.5 per cent in 2022 down from 11.3 per cent in 2021 and 12 per cent in 2020.
The Cabinet Information and Decision Support Center (IDSC) released a follow-up report on Fitch Solutions Outlook for the growth rate in Egypt’s food sector. It said the expenditures on bread, rice, grains, meat and poultry would constitute 52 percent of the total expenditures of the food market in Egypt in 2022.
On the medium-range term, spending on food during the period from 2022-2025 would increase to reach 10.3 percent, a matter which would lead to a rise in the nominal value from EGP 779.5 billion in 2022 to reach up to EGP 1027.9 billion in 2025, according to Fitch outlook.
The Fitch report also noted that food and beverages companies have a good chance to access the Egyptian market to enhance its opportunities to benefit from the strong growth forecasts on the long-range after several years of inflation, adding that a relative economic stability in Egypt is a good sign for local and foreign investors in the food sector.
IDSC noted that foreign investors have recently showed deep interest in merging and acquisition operations in the Egyptian market in view of an improvement in the economic status of Egypt over the past few years. The report cited the announcement of investment plans by key companies such as Kellogg’s, Cargill, Pepsi, Coca-Cola and Kraft Heinz.
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