Ukraine mulls opening food hub in Egypt’s SCZONE – minister
Ukraine is exploring the creation of a logistics hub within Egypt’s Suez Canal Economic Zone (SCZONE) to facilitate the export of Ukrainian agricultural products to Africa and the Middle East.
“On the instructions of Ukraine’s President Volodymyr Zelenskiy, we are exploring the possibility of creating a food hub in Egypt,” said Ukraine’s Minister of Agrarian Policy and Food, Vitaliy Koval, who is visiting Egypt, on a Telegram post on Tuesday.
Koval, accompanied by Ukraine’s Ambassador to Egypt, Mykola Nahornyi, said he toured port facilities and potential locations for Ukrainian businesses, including storage, logistics centres, and grain elevators. He highlighted the SCZONE as “a key economic hub in Egypt, offering attractive incentives for investors and industrial development.
“It provides tax and customs privileges, streamlined registration processes, and access to over 1.3 billion consumers across Africa and the Arab world.” the Ukrainian minister noted.
Recognising Ukraine’s position as a major global producer and exporter of grains, oilseeds, and vegetable oils, Minister Koval emphasised the strategic importance of partnering with the SCZone to boost agricultural exports. He explained that utilising Egypt’s logistical advantages would enable Ukrainian agribusinesses to operate more efficiently, reduce costs, and improve access to African markets.
“Our goal is to ensure that Ukrainian farmers not only export raw materials, but also use special economic zones for processing,” Koval stated. This would allow Ukrainian food products, such as flour and pasta, to be sold within Egypt and exported to countries benefiting from Egypt’s free trade agreements.
Koval’s visit follows a meeting on Monday with Egypt’s Minister of Planning and Economic Development, Rania Al-Mashat. Minister Al-Mashat reiterated Egypt’s ambition to become a major global grain logistics hub, leveraging the SCZONE for grain storage and re-export. She noted that Egypt’s expanding silo infrastructure and strategic location would enable Ukrainian agricultural exports, particularly grains, to reach African markets more efficiently. The ministers discussed broader cooperation in agriculture, trade, and logistics.
Attribution: Amwal Al Ghad English