Egypt's Mostakbal Misr takes over GASC's role as commodities importer

In a significant shift in Egypt's procurement strategy, Mostakbal Misr for Sustainable Development has assumed responsibility for importing strategic commodities, replacing the General Authority for Supply Commodities (GASC).

According to a Dec. 5 letter from Egypt's Ministry of Supply to Oksana Lut, Russia's Minister of Agriculture, the move entails a departure from GASC's established tender-based system.

Instead, Mostakbal Misr plans to employ direct purchase agreements alongside tenders, a strategy aimed at streamlining processes but which has raised concerns among global traders.

"Mostakbal Misr Agency will assume all jurisdictions previously held by GASC," the letter stated.

"The Supply Ministry guarantees that the agency has the financial capacity to honour all commitments arising from tenders and direct purchases."

The letter is intended to introduce the officials of the new agency, GASC told Reuters in a written response.

"This aims to ensure the import of wheat without any difficulties," it added, citing an Egyptian cabinet decision to activate the role of Mostakbal Misr's Authority for Unified Procurement.

Founded in 2022 by presidential decree, Mostakbal Misr serves as the development arm of the Egyptian Armed Forces. 

While initially focused on land reclamation projects, its remit has since expanded to include major sectors of the economy.

At the end of November, the agency made its first attempt to procure wheat and vegetable oil through direct purchase agreements. However, procedural ambiguities led to confusion among traders, prompting calls for greater clarity and forcing a postponement of the tender.

Egypt, one of the world's largest wheat importer, has long relied on GASC as a trusted intermediary for international trade. Its shift to Mostakbal Misr signals potential changes in market dynamics, with traders watching closely for updates on the agency's policies and procedures.