Egypt, world’s largest wheat importer, is rolling out an ambitious silo expansion program to shore up food security in an increasingly volatile global market. The government plans to add around 1.5 million tons of modern storage capacity and lift strategic grain reserves to more than 6 million tons.

Prime Minister Mostafa Madbouly unveiled the initiative at the inaugural Global Alliance Against Hunger and Poverty summit in Doha, presenting it as a cornerstone of Cairo’s response to supply shocks, price swings and geopolitical tensions.

The new program foresees the construction of roughly 50 silos across 17 governorates, stretching from the Nile Delta to major producing areas in Upper Egypt. It builds on the National Silos Project launched more than a decade ago, which has already transformed Egypt’s grain handling system.

In the past, outdated storage facilities meant post-harvest losses could reach as high as 15%. On a 9-million-ton wheat harvest, that translated to almost 1 million tons lost every year – and an estimated EGP 4.5 billion in squandered value. Today, facilities equipped with modern aeration, pest management and digital monitoring systems have reportedly brought losses down to below 1%, delivering fresher, safer grain to mills and bakeries.

“Egypt’s food security is non-negotiable,” Madbouly stressed in Doha. With monthly wheat consumption around 800,000 tons, he said, the country needs to maintain reserves covering at least three months of demand. The new silo program is designed not only to safeguard domestic supply, but also to position Egypt as a more reliable anchor in the regional grains system.

PERSISTENT IMPORT DEPENDENCE

Home to more than 100 million people and with one of the world’s highest per-capita wheat consumption levels – about 180 kg a year – Egypt faces a structural supply gap. The country imports some 12 million tons of wheat annually to supplement domestic output. According to FAO data, Egypt produced an average of 21.7 million tons of cereals between 2021 and 2023, yet still relied on around 20.3 million tons of cereal imports – mainly wheat and maize – to meet internal needs.

The impact of the Russia–Ukraine conflict on Black Sea export flows, combined with disruptions on the Red Sea shipping route, has driven up import costs and complicated logistics. Against this backdrop, robust storage capacity has become a vital line of defence.

By raising strategic reserves to 6 million tons, Egypt aims to move from a fragile buffer – in 2014, stocks reportedly covered only about five weeks of wheat consumption – to a more comfortable 7–8 months of cover.

EGYPT TO DEVELOP DOMESTIC SILO MANUFACTURING

To accelerate the roll-out and deepen local value creation, Cairo is also leaning on international partnerships and localisation policies. Polish company Feerum Egypt has announced an investment of about EGP 1.6 billion (around US$33 million) in a silo manufacturing facility in the East Port Said Industrial Zone, part of the Suez Canal Economic Zone (SCZONE). The plant will produce silos and related equipment domestically, cutting reliance on imported hardware and creating jobs in engineering, fabrication and construction.

Madbouly also reiterated Egypt’s proposal – developed with the FAO – to establish a “Global Grain Storage Center” in the SCZONE. This hub would serve as a regional buffer stock for North Africa and the Middle East, leveraging Egypt’s location at the crossroads of Europe, Asia and Africa.