Accomplishment of feasibility studies for first grain bourse in Egypt and the Middle East
Dr Khaled Hanafi, Minister of Supply and Internal Trade, announced the completion of the feasibility studies for the establishment of the first grain bourse in Egypt and the Middle East, prepared by Sigma Global Stock Exchanges Company, which represents a coalition of several international companies. The studies cost around EGP 1.3m -funded by Sigma- to establish the bourse in Egypt this year at initial foreign investments reaching EGP 300m -subject to increase according to needs over the coming years. At first, only eight commodities will be traded, he said.
This came during a press conference held by Hanafi in the presence of Dr Iman el Motlaq, Head of Sigma Company, members of the Board of Directors, Hani Aziz, the company’s advisor, Amin Selim, the minister’s office sector, Dr Mohamed Badr, Vice President of the General Committee for foreign aid, Ahmed Mahdi, Head of the Economic Relations Sector and Wael Abbas and Karim Gomaa, the minister’s aides and Magdi Roshdi, Head of the Political Sector.
The bourse aims at protecting small farmers against price fluctuations and providing good prices for their commodities, as 60 per cent of the existing Egyptian agricultural holdings are less than one feddan, Hanafi said. Adding that it will encourage the cultivation of particular and good farming types, increase investment in agricultural sectors, attract local and foreign investments and provide thousands of direct and indirect job opportunities. It will also lead to upgrading agriculture and providing citizens with commodities at low prices and increase exports.
He asserted that trading during the first year is expected to include 2 million contracts, expected to more thandouble -9 million and a half within 5 years. Some 130 brokerage offices will be established to deal with the bourse through 65,000 traders . The farmer will only sell his commodity at the bourse, but there will be traders on it through the bourse, he said.
Some 105 sand barns have been developed into modern ones, as 60 silos are being constructed to save wheat. Also, links will be established between wholesale companies and warehouses, the supplies authority, and the rest of the companies affiliated to the Holding company for food Industries. In addition to creating a modern transport communication with a unified electronic network.
