Logistics – Egypt to develop two zones with USD 193m investments

Strategic logistics and commercial hubs in the Kafr El-Sheikh governorate will aim to support trade and business and to reduce costs.

Egypt is set to establish two logistics and commercial zones in Kafr El-Sheikh Governorate, signaling a significant investment opportunity in the country’s internal trade sector. With investments valued at approximately USD 193 million, the project aims to boost domestic trade, attract investments, and create job opportunities, while optimizing supply chains and reducing transportation costs.

Creating a conducive environment for business activities

As part of a comprehensive strategy to enhance domestic trade, Egypt has laid the foundation stone for two logistics and commercial zones in Kafr El-Sheikh Governorate. Spanning an expansive area of 22 acres, the project is estimated to attract investments ranging from 5-6 billion EGP (up to USD 193 million). The zones will serve as thriving hubs for wholesale and retail trade, logistics, storage areas, supply chains, and food industries, bolstering the overall internal trade sector, which contributes 22 percent to Egypt’s GDP.

Development timeline and key objectives

The project is expected to be inaugurated within 36 months, marking a significant milestone in Egypt’s efforts to stimulate economic growth. By establishing these logistic and commercial zones, the government aims to create a conducive environment for business activities, attract investments, and generate employment opportunities for the local population. The strategic location of Kafr El-Sheikh Governorate further enhances its potential as a vibrant trade hub.

Logistics facilities and employment opportunities

The logistics and commercial zones in Kafr El-Sheikh Governorate will house a wide range of facilities and amenities to support trade operations and improve the quality of life in the area. These include wholesale trade centers, packaging and labeling services, cold and freezing storage facilities, administrative offices, recreational spaces, social amenities, and educational institutions. The government anticipates that the zones will offer approximately 20,000 direct and indirect job opportunities, providing a significant boost to the local economy.

Domestic trade

The logistics and commercial zones are part of a broader initiative to enhance domestic trade in Egypt. Over the past five years, the Internal Trade Development Authority has proposed more than 26 projects with investments exceeding EGP 60 billion, including logistical areas and mixed-use commercial centers. By streamlining commodity trading processes and reducing waste in product distribution, these zones are expected to drive efficiency and contribute to cost savings for businesses and consumers alike.

Reducing transportation costs

Egypt’s Trade and Supply Minister, Ali El Moselhy, emphasized the importance of the logistic and commercial areas in reducing transportation costs, which directly impact the final price of goods. With transportation costs accounting for approximately 10 to 15 percent of the final price, the establishment of these zones and the optimization of supply chains will positively impact consumers, resulting in more competitive pricing and increased affordability.

The establishment of two logistic and commercial zones in Kafr El-Sheikh Governorate showcases Egypt’s commitment to enhancing its internal trade sector. With significant investments, state-of-the-art facilities, and job creation opportunities, these zones are poised to attract both local and international investors, contribute to economic growth, and streamline supply chains for the benefit of businesses and consumers.

Invictus recently announced that it had   surpassed the one million metric ton mark in agro-commodity exports to Egypt in Q1 2023.