European Commission approves €90 million to strengthen Egypt’s grain infrastructure

Egypt and the European Commission have signed a €90 million agreement to enhance Egypt’s grain storage and logistics infrastructure, the country’s Ministry of International Cooperation announced Monday, according to Reuters.

The funding, provided by the European Investment Bank (EIB), is part of ongoing efforts to improve food security in Egypt, one of the world’s largest wheat importers.

The country relies heavily on wheat to produce subsidized bread, a staple for tens of millions of low-income Egyptians. However, bread prices have surged in recent years due to the war in Ukraine, which disrupted wheat exports from both Ukraine and Russia.

The European Union and the World Bank have been key partners in supporting Egypt’s food security initiatives. In addition to the latest funding, Egypt secured a $700 million loan earlier this year from the Islamic Trade Finance Corporation to ensure stable wheat imports.

For the 2024/25 marketing year, Egypt is projected to import 12.5 million metric tons of wheat, while domestic production is estimated at 9.2 million metric tons. This leaves a substantial shortfall, with total wheat consumption expected to reach 20.65 million metric tons, according to Miller Magazine, a trade news outlet.

With continued international support, Egypt aims to strengthen its grain supply chain and mitigate the impact of global market disruptions on its food security.