An Egyptian military agency has assumed control of the country’s strategic commodity imports. In recent weeks, this move has disrupted the global wheat market.
- Egyptian military agency takes over strategic commodity imports, replacing state-run GASC.
- The change has disrupted the global wheat market, as Egypt is a major wheat importer.
- Military-owned firms in Egypt have grown significantly under President Abdel Fattah al-Sisi, causing concerns among some business leaders and investors
An Egyptian military agency has assumed control of the country’s strategic commodity imports. This shift replaces the decades-old state-run General Authority for Supply Commodities (GASC) and allows the agency to manage international buying tenders and make direct purchases.
In recent weeks, this move has disrupted the global wheat market. Egypt, one of the world’s largest wheat importers, previously relied on GASC, a part of the Ministry of Supply, to procure grain for its population, where subsidized bread is a crucial staple for 70 million citizens, Reuters reported.
A letter from Egypt’s Ministry of Supply to Russia’s Minister of Agriculture, Oksana Lut, revealed that the Mostakbal Misr Agency for Sustainable Development, affiliated with the Egyptian Air Forces, is now exclusively responsible for importing food commodities.
The letter outlined the agency’s plans to combine direct purchase agreements with international tenders—a shift aimed at streamlining procurement. However, the new approach has sparked concerns among global traders, given its potential to disrupt established market dynamics.
Under President Abdel Fattah al-Sisi, military-owned firms in Egypt have seen significant growth, a development that has raised concerns among some business leaders and foreign investors.
The Egyptian government, however, has defended the role of these companies, arguing that they are stepping in to address gaps in the market and ensure stability.
