Egypt Secures €90 Million Investment to Strengthen Food Security

Egypt has taken a major step toward bolstering its food security with a €90 million concessional funding agreement signed with the European Commission and the European Investment Bank (EIB). This investment aims to modernize the country's grain storage and logistics infrastructure, ensuring a more resilient food supply amid global market disruptions.

The agreement was signed by Egypt’s Minister of Planning, Economic Development, and International Cooperation, Dr. Rania Al Mashat, alongside Minister of Supply and Internal Trade, Dr. Sherif Farouk, and EU Commissioner for Mediterranean Affairs, Dubravka Šuica, on behalf of the EIB. The financing will be allocated to the General Authority for Supply Commodities (GASC) to facilitate wheat imports and improve storage capacity.

The project is part of a broader initiative to upgrade Egypt’s grain storage facilities, reducing post-harvest losses and securing a steady supply of wheat. "Investing in food security is a cornerstone of our commitment to building resilience, making people the foundation of economic development and effective international cooperation," said Al Mashat.

Egypt is one of the largest wheat importers globally and has faced significant challenges due to supply chain disruptions, particularly following the war in Ukraine. The new funding is expected to mitigate such risks by enhancing the country’s ability to stockpile strategic grain reserves and operate modern storage infrastructure.

According to Gelsomina Vigliotti, Vice President of the EIB, "This investment tackles a key bottleneck for more efficient and resilient food supply in Egypt. The new silos and improved logistics will help reduce food losses, strengthen food security, and improve affordability of bread for millions of Egyptians."

This project is also supported by a €100 million grant from the European Union and additional concessional financing of €110 million from the World Bank. Egypt has been working with international partners to strengthen its food security, and Al Mashat noted that agreements have also been signed with the World Bank and the African Development Bank to support these efforts.

As food security remains a key government priority, investments in infrastructure like the West Port Said silo, which has a storage capacity of 100,000 tons, have been ongoing since 2021. The latest agreement marks another step toward securing Egypt’s grain supply and reducing vulnerability to global market fluctuations.

"This project will have a significant positive impact on the lives of millions of Egyptians, especially the most vulnerable," said Angelina Eichhorst, EU Ambassador-Designate and Head of the EU Delegation to Egypt.

By strengthening its storage and supply chain capabilities, Egypt is also safeguarding its food supply and positioning itself as a regional hub for grain trade. The country is making strides toward long-term food security and economic stability with continued international collaboration.

References

1. https://mped.gov.eg/singlenews?id=6052&lang=en

2. https://www.dailynewsegypt.com/2025/03/03/egypt-eu-sgn-e90m-funding-deal-for-food-security/

3. https://www.newarab.com/news/egypt-and-eu-agree-90-million-euro-deal-boost-food-security

4. https://www.eeas.europa.eu/delegations/egypt/eib-supports-food-resilience-egypt-eur-90-million-investment_en