47703
The country may have to spend more on foreign wheat purchases to meet local demand.
World Economy

Egypt’s Mega Grain Project in Disarray

Blumberg Grain said its mega project to store Egyptian grains was back in play, with the government to announce a final decision in two weeks, after earlier indications that plans had been shelved and the company might exit the country entirely.
The decision comes as Egypt, the world’s largest wheat importer, remains mired in controversy over its wheat supplies, with industry officials claiming that over two million tons of the five million tons of wheat procured locally in this harvest may exist only on paper, Reuters reported.
If Egypt’s local wheat procurement numbers were misrepresented, it may have to spend more on foreign wheat purchases to meet local demand—even as the country faces a dollar shortage that has sapped its ability to import.
The grain logistics company has said the tracking and monitoring capabilities of its high-tech storage systems would crack down on the type of fraud seen in this year’s local procurement, which involves private silos sharply overestimating their wheat stocks to boost government payments.

  Bureaucratic Hurdles
Blumberg Grain completed the first phase of the project earlier this year, delivering 93 systems to process and monitor about a quarter of the country’s crop. But a series of bureaucratic hurdles prevented the sites from coming online in time for the procurement now under investigation.
Egypt’s supply minister said last month that the second phase, which includes an additional 300 storage systems, had been rejected by the state’s Holding Company for Silos and Storage.
Blumberg Grain nonetheless said it is now optimistic about the project moving forward following a meeting with the prime minister and despite the pending resolution of “modest issues that stand in the way”, Blumberg Grain’s CEO for the Middle East and Africa, David Blumberg, told Reuters this weekend.
The company said however that if the second phase is not signed, it would halt plans to establish Egypt as its regional export hub and for a $250 million investment allocation for projects that include a manufacturing plant in East Port Said.
The plant would be the first located in Egypt’s much-touted Suez Canal Economic Zone, on which the government has pinned hopes of building a re-export hub that will draw badly needed hard currency but which has so far struggled to secure foreign investors.
A parliamentary fact-finding committee investigating the wheat procurement scandal is expected to deliver its final report to the head of parliament on Sunday, committee member Yasser Omar told Reuters.

Short URL : http://goo.gl/6LCMPo
  1. http://goo.gl/DA39Qn
  • http://goo.gl/1U5qM4
  • http://goo.gl/5zrXzy
  • http://goo.gl/w1Mnpq
  • http://goo.gl/t7pov1

You can also read ...

 Final Nail in Abraaj Coffin
The Abraaj Group has been put through the ringer in past...
Saudi Arabia Bleeds as Capital Flight Continues
As Saudi Arabia raises the stakes in its dispute with Canada...
Experts Say China Economy Manageable
Recent external pressures, a general global trade malaise...
Qatar Pledges $15b Investment :      Turkish Lira Weakens 6% on Threat of More US Sanctions
Turkey’s battered lira weakened more than 6% against the...
Europe Should Resist Illegal US Penalties
European countries should take effective steps to counter US...
Indonesia Sets Moderate Growth Goals
Amid rising external pressures, Indonesia’s economy is...
 Crypto Scams on the Rise in UK
Crypto currency scams are using images of celebrities and...
Australia Drought Could Cost $12 Billion
The Reserve Bank of Australia and a new report have warned of...

Trending

Googleplus