Egypt Secures USD 1.5 Billion ITFC Financing to Support Food and Energy Security

Egypt’s new USD 1.5 billion financing agreement with the International Islamic Trade Finance Corporation comes at a critical time for the economy, as food security, energy imports, and foreign currency liquidity remain under pressure from regional conflict and higher commodity costs.

Key insights:

• The agreement is designed to support Egypt’s food and energy security, including financing for strategic commodities and petroleum related needs.
• ITFC has provided more than USD 24 billion in financing to Egypt since 2008, supporting energy, food security, and small and medium sized enterprises.
• Previous ITFC financing included around USD 8.8 billion for the General Authority for Supply Commodities, helping Egypt import about 12.6 million tonnes of wheat.
• Egypt remains one of the world’s largest wheat importers, while its bread subsidy system costs more than USD 2.6 billion annually and supports around 70 million citizens.
• The financing comes as Egypt faces renewed energy pressure. The monthly energy import bill reportedly rose from USD 1.2 billion in January to USD 2.5 billion in March as regional conflict pushed up fuel and gas costs.
• Egypt’s monthly natural gas import bill also reportedly increased from about USD 560 million to USD 1.65 billion, adding pressure on foreign currency needs and fiscal planning.
• The agreement also supports Egypt’s effort to manage foreign oil company arrears, which the government has pledged to settle fully by the end of June.

The main takeaway is that this financing is not only a trade facility. It is a stabilisation tool. For Egypt, securing external funding for wheat, energy, and essential commodities helps reduce pressure on reserves, protect food supply chains, and cushion the economy while regional risks continue to raise import costs.