Egypt Seeks Bank Financing to Enhance Food Security
In a strategic move to bolster food security, Egypt is actively seeking bank financing to purchase essential commodities and strengthen strategic reserves.
Partnerships with Financial Institutions
Officials from First Abu Dhabi Bank Egypt recently met with Egyptian Minister of Supply Sherif Farouk to discuss ways to enhance partnerships with the private sector and financial institutions. The focus was on improving internal trade infrastructure and exploring investment opportunities in the food industry.
Initiative to Improve Food Security
This initiative is part of Egypt’s broader strategy to improve food security amidst rising global inflation and supply chain disruptions. The meeting follows Egypt’s state grains buyer, General Authority for Supply Commodities, issuing its largest-ever tender for 3.8 million metric tonnes of wheat in August.
Collaboration and Development
Farouk emphasized the importance of collaboration in financing the import of essential goods, enhancing strategic reserves, and developing the Egyptian commodity exchange. He also highlighted the need to expand silo construction and increase storage capacities. The meeting was attended by key officials from both sides.
Deepening Cooperation
FAB Egypt expressed enthusiasm for deepening cooperation with the ministry in various areas such as internal trade, food security initiatives, and financing ministry projects. The goal is to finance the procurement of necessities, bolster strategic reserves, and improve commodity exchange infrastructure.
Wheat Imports and Procurement
Egypt, a major global wheat importer, heavily relies on wheat to subsidize bread for millions of its citizens. GASC imports around 5.5 million metric tonnes of wheat annually. Currently, GASC is seeking wheat shipments for specific periods with plans to purchase on a free-on-board basis using 270-day letters of credit.