An Egyptian cabinet announcement on Tuesday revealed that Egypt's General Authority for Supply Commodities has signed a $700-million loan agreement with the Islamic Trade Finance Corporation to boost its efforts in food security.

The loan is part of the ongoing cooperation between Egypt, and the Saudi organisation. This organization has played an important role in helping Egypt secure staple food such as wheat, as well as its energy supply.

ITFC has also allocated an $800,000,000 loan to the Egyptian General Petroleum Corporation in order to meet the energy needs of the country.

The exact role of GASC is unclear, however, since the government decided last year to move strategic wheat procurement to Mostakbal Misr - a state entity created in 2022.

Market observers are concerned about the shift in responsibilities.

Egypt is the largest wheat importer in the world. It relies heavily on imported grain to support its subsidised bread program, which feeds 70 million people.

Egypt's strategic reserves of wheat have been reduced to just four months worth, compared with seven months in mid-2024. (Reporting and editing by David Goodman.)

(source: Reuters)