EGYPT – Egypt is set to boost its grain and cereal storage capacity by 76%, aiming to reach 6 million tons by 2030, according to Walid Abu Al-Magd, the Deputy Minister of Supply.
Speaking to Asharq Business, Abu Al-Magd outlined a strategic two-phase plan designed to extend the storage duration of essential goods from six to nine months.
The first phase, to be completed by 2027, will involve constructing new silos with a capacity of 1.4 million tons, costing EGP 19 billion (US$ 615 million).
This expansion is part of Egypt’s efforts to ensure food security amidst fluctuating global grain markets and supply chain disruptions. The second phase, slated for completion by 2030, targets an additional 1.2 million tons of storage capacity, requiring an investment of EGP 15 billion (around US$ 485 million).
To support this expansion, recently, the country announced plans to establish a company dedicated to localizing the manufacturing of grain silos as part of a comprehensive strategy to boost wheat supplies.
This initiative, announced by Sherif Farouk, the Minister of Supply and Internal Trade, is a crucial component of the government’s comprehensive plan to increase storage capacity and ensure the stability of wheat reserves.
This venture is a public-private partnership with significant private sector involvement, including a 26% stake held by Samcrete, a leading Egyptian construction company, and a 50% stake held by a Polish technology provider.
The remaining 12% is allocated to the economic zone authority, reflecting Egypt’s strategy to leverage both domestic and international expertise in silo construction.
The plan involves constructing new silos and upgrading existing ones to accommodate the increased capacity.
A key aspect of the strategy includes integrating the silos into the national railway network and utilizing the Nile for wheat transportation in collaboration with the Ministry of Transportation.
The increased storage capacity is expected to bolster Egypt’s strategic reserves of grains and cereals, essential components of the nation’s food supply.
With a population of over 100 million, Egypt is one of the world’s largest wheat importers. By extending the storage duration and expanding capacity, the government aims to mitigate the impact of supply chain disruptions, reduce import dependency, and stabilize local food prices.
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