According to Reuters, the loan will help Egypt to add at least 420,000 tons of grain storage capacity.
The additional storage capacity will be dedicated mainly to wheat, in addition to other cereals and grains.
The loan is part of a €225 million initiative to improve food security in North Africa, of which €100 million has been allocated for Egypt to help meet its wheat and grain needs.
Egypt's current capacity
Egypt's wheat storage capacity currently stands at 4.5 million tons, according to Ministry of Agriculture Spokesperson Mohamed Al-Kersh.
Egyptians consume up to 18 million tons of wheat annually, of which 12 million tons is imported, according to 2022 figures.
Cairo has been encouraging farmers to supply more wheat to the government in light of disruptions in global food supply chains and rising commodity prices. The government aims to purchase four million tons of local wheat during the current harvest season, which started in April and runs through the fall.