RIYADH: Egypt is actively seeking bank financing to purchase essential commodities and strengthen strategic reserves as part of its efforts to enhance food security.
In a recent meeting with Egyptian Minister of Supply Sherif Farouk, officials from First Abu Dhabi Bank Egypt discussed ways to boost partnerships with the private sector and financial institutions.
They highlighted the importance of bank financing for improving internal trade infrastructure and exploring investment opportunities in the food industry.
This initiative is part of Egypt’s broader strategy to improve food security amid rising global inflation and supply chain disruptions.
The meeting follows the General Authority for Supply Commodities, Egypt’s state grains buyer, issuing its largest-ever tender for 3.8 million metric tonnes of wheat in August.
Farouk emphasized the importance of strengthening collaboration with relevant entities in several key areas, including financing the import of essential goods, enhancing strategic reserves, and developing the Egyptian commodity exchange. He also stressed the need to expand silo construction and increase storage capacities.
The meeting was attended by Hossam El-Garhy, deputy head of the General Authority for Supply Commodities, and Ahmed Kamal, assistant minister and official spokesperson for the ministry.
From First Abu Dhabi Bank Egypt, the attendees included Mohamed Abbas Fayad, CEO and managing director; Mohamed Galal El-Din, general manager and head of Financial Markets; Moustafa Fahmy, executive director and head of Global Markets Sales; and Tamer El-Gohary, head of Banking Services.
Farouk highlighted the necessity of creating new avenues for collaboration with financial institutions and enhancing partnerships with the private sector.
The minister reviewed FAB Egypt’s banking offers, financing, and investment opportunities and discussed potential collaboration with the General Authority for Supply Commodities. The goal is to finance the procurement of necessities, bolster strategic reserves, and improve the commodity exchange infrastructure.
Fayad expressed strong enthusiasm for deepening cooperation with the ministry and its affiliates in areas such as internal trade, food security initiatives, and financing various ministry projects. These projects include the development of silos, strategic warehouses, logistics areas, and wholesale and semi-wholesale markets.
Egypt, a major global wheat importer, relies heavily on wheat to subsidize bread for tens of millions of its citizens. The General Authority for Supply Commodities alone imports approximately 5.5 million metric tonnes of wheat annually for this purpose.
GASC is currently seeking wheat shipments for periods spanning the 1st to 15th and the 16th to 30th of each month, starting from October through April, with a specific shipment window in February from the 16th to the 28th. The authority is looking to purchase the wheat on a free-on-board basis using 270-day letters of credit.
