Brazilian investors explore establishment of logistics zone in Egypt's SCZone
Updated 10/3/2024 8:23:00 AM
Arab Finance: Seven Brazilian investors are studying the establishment of a logistics zone in the Suez Canal Economic Zone (SCZone), with plans to announce further details in 2025, Regional Director of the Arab-Brazilian Chamber of Commerce Michael Gamal told Al Borsa News.
This initiative follows a proposal made in 2022 by Egypt’s Prime Minister to a Brazilian delegation, aimed at strengthening trade ties between the two nations.
The proposed logistics zone would focus on importing key agricultural products, such as corn, soybeans, and sugar, for distribution to Arab and African markets.
It would also help meet local demand for these products and facilitate easier shipping and distribution from Egypt.
Gamal noted that recent government measures, including the removal of investment restrictions and streamlined procedures, have made Egypt an attractive location for Brazilian business interests.
Trade between Egypt and Brazil has grown significantly since the implementation of the Mercosur agreement in 2017.
Egyptian exports to Brazil surged by 40% last year, reaching $700 million, compared to $500 million in 2022 and $150 million in 2021.
Imports from Brazil have consistently ranged between $2 and $2.2 billion annually, with meat, poultry, sugar, soybeans, and corn among the main imports.
Brazil’s imports of frozen strawberries from Egypt have also been notable, accounting for 86% of Brazil’s imports of the fruit last year, largely due to customs exemptions under the Mercosur agreement.
The Arab-Brazilian Chamber of Commerce aims to boost trade between the two countries to $3 billion in 2025 and increase Egypt’s exports to Brazil to $1 billion by diversifying the range of products imported, such as textiles and towels.
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