Egypt plans to get benefit from the Chicago Mercantile Exchange (CME)’s wide expertise, seeking to establish its first and biggest commodities exchange in the Middle East.
Egypt’s Minister of Supply Khaled Hanafy announced Wednesday that his country, represented in officials from the Armed Forces, Cabinet and Arab Contractors Company, will start a number of meetings with CME chairman and board members. The meetings aimed to review means of technical cooperation and support between the two countries to build the first commodities exchange in Egypt and the Middle East, dedicated for the grains and wheat.
The Egyptian minister headed Sunday to the U.S. for a three-day visit, during which among other missions, he had signed contracts worth EGP 3.206 billion for three mega logistics projects in Egypt with Blumberg Company aimed at improving grain storage and distribution.
The first project will be worth EGP 700 million(US$97.8 million) and establish a factory specialized in producing storage technology and modern logistics to serve the local market, along with exporting to Arab and African countries.
The second project, at value of EGP1.1 billion (US$153.8 million), is to establish ten fruit and vegetable canning facilities, aiming to reduce the costs and to provide fresh vegetables and fruits for citizens.
Moreover, the third project, worth EGP 1.3 billion ($181.7 million), is about the restructuring and renewing 164 Egyptian wheat silos, along with applying modern storage technology to avoid waste, and reducing the cost of goods by 30%.
Egypt, the largest wheat exporter, is seeking wheat self-sufficiency by 75% in the coming three years.