Egypt will get imported milling wheat under the five-year deal, valued at $100 million annually, "at competitive prices." This is according to a report by the American news agency, Reuters.
Egypt, a significant consumer of basic goods, has been experiencing a foreign exchange crisis as a result of the Ukraine War's widespread shock to its economy. In terms of the dollar, Egypt's currency has fallen by approximately 50%, and official headline inflation has reached an all-time high of 36.5%.
The nation began delaying payments for wheat imports and is now having a harder time generating money to pay off its foreign debt. "The low-cost financing package from ADEX helps us procure high-quality wheat at the lowest cost financing available, with comfortable payment terms," Egypt's supply minister Ali Moselhy said in a statement.
Recent wheat purchases have frequently been financed by loans from the World Bank and the International Islamic Trade Finance Corporation (ITFC), which this year increased a credit line given to Egypt to $6 billion. The financing for food subsidies, primarily bread, would increase by 41.9% to 127.7 billion Egyptian pounds ($4.1 billion) in the fiscal year running from July 2023 to June 2024, according to the finance ministry.
Al Dahra will start supplying Egypt with imported wheat this year as per the agreement. Through its Egyptian affiliate, which cultivates wheat on 28,000 hectares in Egypt, the Emirati corporation already provides the government with locally produced wheat. The government organization Abu Dhabi Fund for Development's export finance division is called ADEX.
