EGYPT – El Rashidi El Mizan (REM), a subsidiary of the Saudi group Olayan, is set to invest US$150 million in 6 new production lines during the second half of 2023.
Sheriff William, Commercial Director of the company, said the investment is part of an expansion strategy aimed at doubling the company’s monthly production capacity to 10,000 tonnes over the next 5 years.
Founded in 1889, El Rashidi El Mizan produces a wide variety of confectionery products, including molasses and jams, as well as tomato concentrates and sesame creams (Tahina).
Standing on its vision of bringing quality, nutritious foods, at a great value to as many people as possible, the company serves over 50 markets in the MENA region.
The company has a network of 6 factories based in the city of October 6 in the governorate of Giza, north of the country.
According to William, once these new production lines are operational, the company plans to diversify into new market segments to expand its food product offering.
In Egypt, El Rashidi El Mizan points out that the Halawa and Tahina market is very fragmented, with more than 150 producers operating in the field, each with a limited geographical reach.
The company boasts of having a hold of 60% share of the branded Halawa market and 78% of the Tahina market, making us the absolute market leader in the field.
In Egypt, the Agri-food industry is one of the most dynamic in Africa and the strong demand driven by population growth creates many opportunities for private sector players.
About 90% of the total value added in Agro-food for Egypt comes from field crops–mainly cereals, vegetables, and fruits; the remaining 10% is ascribable to food and beverage industries.
Agro-food in Egypt has increased its export orientation, accounting for 17% of total exports during 2018-20, double the 8% during 2005-07.
This increase stems mainly from the increase in the production of fresh products and processed fruits and vegetables, due to the modernization of existing farms and processing/production facilities. Oranges are the main export, accounting for 13.3% of total Agro-food exports.
Within Africa, where 18% of Egyptian exports are, the country’s main export destinations are located in the nearby Northern African market (also the biggest market of REM).
Libya, Morocco, and Algeria together account for 8.3% of total Agro-food exports, while East Africa, such as Eritrea (2%) and Kenya (1%).
Africa is the third largest market for Egyptian Agro-food products after Western Asia, with countries such as Saudi Arabia (11% of total Agro-food exports), the United Arab Emirates, and Jordan as the main destinations.