• Egypt’s EHCSS secures €12 million EU-backed grant for wheat storage

• Funding to build five silos, upgrade digital reserve monitoring

• Project supports food security, cuts post-harvest wheat losses

Egypt’s state-owned Egyptian Holding Company for Silos and Storage (EHCSS) will receive a €12 million ($14.1 million) grant under an agreement signed with the Italian Agency for Development Cooperation (AICS).

In a statement issued on Monday, AICS said the funding will be disbursed under the EU-KAFI programme, a European Union initiative implemented in Egypt since 2024 in partnership with Italy to support cereal production.

The funding is intended to improve wheat storage infrastructure and the management of Egypt’s strategic reserves. Part of the grant will finance the construction of five silos with a combined capacity of 50,000 tonnes. Each silo will store up to 10,000 tonnes of wheat and will be located in the governorates of Dakahlia, Damietta, Beheira and Sharqia.

The agreement also includes an upgrade of the Ministry of Supply and Internal Trade’s digital system, enabling real-time monitoring of national wheat reserves. The upgrade is expected to improve data reliability and oversight while strengthening planning and decision-making by the authorities.

The modernization is expected to boost storage capacity at both local and national levels, improve crop management efficiency and help reduce post-harvest losses, according to the statement.

The projects are in line with the government’s broader strategy to strengthen the country’s storage system. In September 2024, the Ministry of Supply announced a 34 billion-pound ($718 million) investment plan to build new silos, with the aim of raising national grain storage capacity to 2.6 million tonnes by 2030.

The partnership underscores the European Union’s continued support for Egypt’s priorities in food security, agricultural modernization and the sustainability of storage and supply systems, AICS said. It also represents a step toward a more efficient and resilient wheat supply chain in the country.

The EU is among Egypt’s wheat suppliers. Data from the Trade Map platform show that Egypt imported nearly $4.44 billion worth of wheat in 2024, with around 70% sourced from Russia. The EU accounted for about 14.2% of imports, making it the country’s second-largest supplier, followed by Ukraine at 13.4%.

Closer ties with Egypt carry strategic importance as domestic wheat demand continues to rise, driven by population growth and expanding trade in wheat flour and related products.

According to the U.S. Department of Agriculture (USDA), Egypt’s wheat imports rose by 10.41%, from 11.25 million tonnes in the 2021/2022 marketing year to 12.48 million tonnes in 2024/2025.

Over the same period, exports of wheat flour and related products increased nearly eightfold, from 300 tonnes to 2,352 tonnes. For the 2025/2026 marketing year, the USDA expects Egypt’s wheat imports to reach 13 million tonnes.

Stéphanas Assocle