Ukraine considers Suez Canal economic zone to create food hub in Egypt

Minister of Agrarian Policy and Food Vitaliy Koval, during his visit to Egypt, met with the Head of the State Administration of the Suez Canal Economic Zone (SCZone) Walid Hamalaldin.

This was reported by the press service of the Ministry of Agrarian Policy and Food.

It is noted that the Minister, together with the Ambassador of Ukraine to Egypt Mykola Nagorny, are studying the possibility of creating a food hub in Egypt. Thus, they inspected the port infrastructure of the SCZone, which unites six ports, as well as locations where Ukrainian businesses can place their elevators, logistics centers, and warehouses.

According to Koval, the SCZone is a key economic zone in Egypt, which offers favorable conditions for investors and industrial development.

“Our task is for Ukrainian farmers not to simply export raw materials, but to use special economic zones for their processing. Ukrainian products should enter African markets with added value. This will provide an opportunity to enter the domestic market of Egypt and export finished products – flour, pasta, other food products – to countries with which Egypt has a free trade zone,” he emphasized.

The Minister noted that the SCZone allows creating production sites and industrial zones with tax and customs benefits, using simplified registration and customs clearance mechanisms, and gaining access to a large market – over 1.3 billion consumers in African countries and the Arab world.

As reported, in the fall, Ukraine proposed to the Sultanate of Oman to consider the possibility of creating a food hub for Ukrainian products and their further promotion on the markets of East African countries.

Ukraine has also considered Ghana, Senegal, and Nigeria to create grain hubs in Africa. However, none of these projects have been implemented yet.

Tags: Ukraine, Egypt