Federated Hermes participated in a US$1.3bn syndicated trade finance facility to support wheat purchases for the Egyptian government – an essential transaction that underpins social stability.
During Ramadan, demand for subsidised bread in Egypt surges as families gather to break their fast. With roughly half of the country’s 120 million population living at or near the poverty line, the Egyptian government’s bread subsidy programme is a cornerstone of the national diet, providing heavily discounted baladi loaves to eligible households.
The scale is vast. The programme produces around 100 billion subsidised loaves a year, requiring approximately 8.5 million metric tonnes of wheat. Domestic production meets only part of that demand – about 3.5 million tonnes – leaving Egypt reliant on imports of roughly 5 million tonnes annually, more than any other country.
As Ramadan approaches, wheat shipments into Egypt accelerate. Ensuring uninterrupted supply is not merely a logistical challenge but a fiscal one: subsidies weigh heavily on the state budget, even as they help preserve social stability.
