EGYPT- Executives from multinational food company Kraft Heinz recently met with representatives from the Egyptian government to discuss ways of enhancing the company’s investments in the North African country as Kraft Heinz seeks to cement Egypt as its North Africa and Gulf region headquarters.
The meeting involved William Bahrin, Executive vice president of Kraft Heinz’s board of Directors, accompanied by a technical delegation, and Elsayed Elkosayer, Minister of Agriculture and Land Reclamation. The President of Egypt’s Agricultural Research Center was also privy to the meeting.
The discussions focused on ways to enhance the company’s investments in Egypt, as Kraft Heinz seeks to establish Egypt as its regional headquarters for the Middle East and North Africa.
The government representatives lauded the company’s decision to invest in Egypt, reiterating the North African country’s commitment to working with foreign investors, especially in the agriculture and processing sectors.
The Minister of Agriculture expressed the government’s willingness to work with the food company, especially in developing new product varieties and expanding through a conducive business environment.
Egypt has positioned itself as a preferred investment destination for food and FMCG companies seeking to engage the Gulf and North African markets for several years. In 2018, Mars Wrigley announced a US$42.5 million expansion of its chocolate processing facility. In 2021, PepsiCo also announced plans to invest US$100 million in Egypt.
Kraft Heinz announced investing more than US$57 million between 2020 and 2025 in upgrading its production facility in Egypt to increase production capacity and increase exports to new markets. The investment follows increased demand for the company’s products in North Africa and the Middle East.
However, the minister also reiterated the need for Kraft Heinz to ensure it complies with global market requirements, food safety practices, and quality standards. The minister also recommended the company invest in contract farming, which will help offset supply chain challenges as the company develops market-driven pricing strategies and adjustments.
Bahrin expressed satisfaction with the meeting and the government’s assurance of support. He reiterated the company’s commitment to investing in Egypt, highlighting the company’s current favorable business environment. He also stated that the company would back sustainable agriculture projects in North Africa through these investments.
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