Chinese-Egyptian alliance to develop $7B agricultural complex in New Valley

Updated 11/25/2024 11:19:00 AM

Arab Finance: An investment alliance between Chinese investors and both the private and public sectors in Egypt is set to develop an integrated agricultural complex in New Valley Governorate with an estimated investment of $7 billion, Asharq Business reported, citing Secretary-General of the Egyptian-Chinese Entrepreneurs Association Mohamed Alaa.

The complex will be built on 1 million feddans, representing 44% of Egypt's total land area, Alaa added.

The first phase of the project will focus on cultivating 1,000 feddans, and is scheduled for completion by September 2025, he noted.

The remaining phases will be discussed with the Egyptian Prime Minister, with plans still being finalized.

Alaa noted that the project is backed by the Chinese government and is financed by Chinese private-sector stakeholders.

The project involves growing strategic crops such as wheat, corn, soybeans, sunflowers, and selected fruits for export to European markets.

In response, Egyptian Minister of Agriculture Alaa Farouk emphasized that the new complex aims to reduce Egypt’s dependence on wheat imports, boost local production, and strengthen the country’s foreign currency reserves.

The alliance also plans to cultivate additional crops, including corn, and high-value aromatic and medicinal plants, as well as develop greenhouses, nurseries, and palm tree farms, Faroul pointed out. These products are intended for export, particularly to Europe.

The project also aims to promote sustainable agriculture with crops requiring less water, which is a key consideration in Egypt’s arid climate, the minister highlighted.

Since 2015, the Egyptian government has targeted to reclaim and cultivate 1.5 million feddans nationwide, including Upper Egypt, South Valley, and Sinai.

Farouk further highlighted that the government will support the Chinese alliance by helping to it establish an advanced agricultural research complex and an integrated agricultural industrial hub in the New Valley.

The alliance also plans to set up wind and solar plants to generate clean and renewable energy, along with a number of agricultural manufacturing ventures, such as factories to convert palm fronds into wood.