Food market- Photo courtesy of IFAD Facebook page
CAIRO - 9 August 2022: The commodity exchange will start trading during the first quarter of 2023, head of the Internal Trade Development Authority of the Egyptian Ministry of Supply, Ibrahim Ashmawy, expected.
Ashmawy noted that the commodities that will start trading have been identified, such as wheat.
Ashmawi said in his statements on the sidelines of the opening of the Commercial Registry Center in Beni Suef Governorate, that all the characteristics of gold have been studied, and trading will begin on some gold bars in addition to the cotton commodity, noting that all bids will take place through the commodity exchange.
Ashmawi said that it is scheduled to sign contracts for the first phase of strategic store warehouses with investors, which includes four warehouses during the next month, with Orascom, Samcrete Egypt Engineers and Contractors and Hassan Allam companies.
He pointed out that these companies have started to work as private companies for the project to obtain funds for warehouses from banks, noting that these warehouses will be located in the governorates of Sharkia, Suez, Fayoum and Luxor at an investment cost of about LE 3 billion per warehouse.
Ashmawi added that the second phase includes three warehouses in the governorates of Kafr El-Sheikh and Upper Egypt, and the third in the governorates of Lower Egypt, which is scheduled to be presented to investors during the next year 2023, stressing that these warehouses are making a qualitative leap in increasing the strategic stock of goods and may reach 8 and 9 months.
According to Ashmawi, three investment opportunities have been awarded since the beginning of this year so far in the governorates of Suez, with an area of 7,000 meters, won by the United Company of Pharmacists (UCP) , Kafr El-Sheikh with an area of 11.68 feddans, won by Fern Pro Services and Distributions, and Dakahlia, with an area of 4.5 feddans, won by New Marakez Company.
He explained that two investment opportunities are scheduled to be launched during the coming period in the governorates of South Sinai and New Valley, and thus we will have five investment opportunities during the current year, with investments amounting to LE 12 billion.
In 2019, Egypt announced the establishment of the commodity exchange to be launched during October of the same month before the postponement of this step.
The commodity exchange is a legal entity that determines and enforces rules and procedures for trading standardized commodity contracts and related investment products. A commodity exchange also refers to the physical center where trading takes place.
It is a market in which products and commodities are sold in bulk.
In fact, the first fruit and vegetable exchange was established in Badr City, Beheira Governorate, in Unit No. 1 to store vegetables and fruits, instead of markets, where goods are spoiled. It is an integrated enterprise with an industrial and a commercial part.