Egypt to establish 2 logistic zones with investments worth US$193m

Egypt to establish 2 logistic zones with investments worth US$193m

Egypt has laid the foundation stone for two logistic and commercial zones in the governorate of Kafr El-Sheikh with investments at a value estimated at 5-6 billion EGP, on an area of 22 feddan.

The internal trade sector contributes by 22 per cent of the GDP, and the potential sector includes various fields such as wholesale and retail trade, logistics, storage areas, supply chains, food industries, and their service activities.

The project is scheduled to be opened within 36 months.

The logistic zones are open for diverse businesses such as half-wholesale trade, packing and packaging, cold and freezing stores, entertainment, social and educational activities, and others.

The zones would contribute to reducing commodity trading processes and limiting waste in the distribution of products, especially since transportation costs represent approximately 10 to 15 per cent of the total final price of a product.

Egypt’s Trade and Supply Minister El Moselhy said that the establishment of such logistic and commercial areas and distribution and sales outlets would reduce transportation costs, which is reflected in the final price in favor of consumers.

The government works hard to overcome any obstacles facing investors in the implementation of projects to establish logistical areas and the expansion of major commercial activities.

Moreover, new investment opportunities are offered with complete facilities on top of the project’s land, in addition to assisting in obtaining project licenses.

The project will comprise logistical, commercial, recreational, social, administrative, educational, and service areas in Kafr El-Sheikh, providing approximately 20,000 direct and indirect job opportunities.

The zones include commercial businesses in addition to service and administrative offices, storage yards, hypermarkets, and shopping centers. The real investment opportunities proposed by the Internal Trade Development Authority over the past five years, which are being implemented on the ground, amount to more than 26 projects with investments exceeding EGP 60  billion including logistical areas and mixed-use commercial centers, according to trade and supply ministry’s reports.

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