Egypt’s Mostakbal Misr sidelines GASC with wheat and vegoils purchase plan

The announcement signals a shift in procurement strategy, diverging from the tender system used by the General Authority for Supply Commodities, Egypt’s primary state buyer of essential commodities

Egypt plans to secure wheat and vegetable oils through direct purchase agreements, Mostakbal Misr Agency for Sustainable Development said in a statement issued late on Wednesday.

The announcement signals a shift in procurement strategy, diverging from the tender system used by the General Authority for Supply Commodities (GASC), Egypt’s primary state buyer of essential commodities.

Historically, GASC has relied on a tendering system, with direct purchases a rare occurrence.

Mostakbal Misr representatives were present at GASC’s last wheat tender on Nov. 4, overseeing the process, two traders who attended the negotiations told Reuters.

“It looked like they were observing to learn and asked for our contact details after the tender,” one trader said.

A third trader told Reuters that Mostkbal Misr appears to have “sidelined” GASC, but the agency lacks GASC’s long experience and connections in the market.

“GASC has been in the market for 40 years. Traders know and trust its process, but Mostakbal Misr is coming out of the blue,” he said.

The Mostakbal Misr Agency, founded in 2022 by presidential decree, has roots in land reclamation projects dating back to 2017.

Mostakbal Misr said the deadline for offers is Nov. 28. Offers are expected on CIF basis. Payment is at sight using 270-day letters of credit.

Shipping for wheat is in January and delivery for vegetable oils expected February to March.

Tags: wheat, edible oils, Egypt, tender