Egypt and the European Commission sign €90 million concessional funding to strengthen their strategic partnership in the field of food security

Coinciding with EU Commissioner for the Mediterranean's visit to Cairo

 

Egypt and the European Commission sign €90 million concessional funding to strengthen their strategic partnership in the field of food security

 

H.E. Dr. Rania Al Mashat, Minister of Planning, Economic Development and International Cooperation, Dr. Sherif Farouk, Minister of Supply and Internal Trade, representing the Arab Republic of Egypt, and Dubravka Šuica, the EU Commissioner for Mediterranean Affairs, on behalf of the European Investment Bank (EIB), signed a development financing agreement for the Food Resilience Project in Egypt worth €90 million from the EIB for the General Authority for Supply Commodities (GASC).

 

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.

 

In her remarks, H.E. Dr. Rania Al-Mashat emphasized that food security is one of the main pillars the government is working on to secure the strategic needs of the state and hedge against global fluctuations and geopolitical tensions that affect supply chains. Therefore, the Ministry of Planning, Economic Development, and International Cooperation is working to strengthen international partnerships to support the national silos project, alongside continuing efforts to increase the percentage of self-sufficiency in crops through the targets of the Economic and Social Development Plan.

 

H.E. explained that the agreement signed today 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 this context, 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, Dr. Sherif Farouk, Minister of Supply and Internal Trade, noted 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.

 

The Minister of Supply and Internal Trade 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.”

 

"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.”