Internal trade supported by The Netherlands

The Netherlands Embassy supports strengthening of the internal trade chain in Egypt. Good quality fruits and vegetables are rare in shops in Cairo and Alexandria. The best products are exported to European markets. Makro Cash and Carry from the Netherlands together with Makro Cash and Carry Egypt will support small farmers to grow high quality fruits and vegetables and to sell these to consumers in Cairo and Alexandria.

Makro Cash and Carry will start shops in Egypt that buy directly from the farmers. The farmers take their products to collection platforms where the products are cleaned, graded and kept in cold stores.  From there the products find their way to Makro shops, where small retail shops, hotels, consumers can buy the products.

The Government of the Netherlands assists farmers to improve the quality of their crops, to use less fertilizers and less pesticides, to bring their crops to the markets and to reduce the post harvest losses. In the philosophy of both governments - the Netherlands as well as Egypt - the private sector is best equipped to implement projects like this. Makro has the experience of buying products with small and medium sized growers. Furthermore it possesses the knowledge how to integrate smaller farmers in the  modern supply chains with high quality standards. Early 2009, the company completed a similar project in Vietnam. The experience acquired in Vietnam will also benefit the implementation of this project in Egypt. In the end the project will contribute to food safety.

The project is one of the 20 projects that have started in Egypt under the socalled ‘Private Sector Investment’ programme. The PSI programme promotes cooperation between companies from Egypt and from the Netherlands. The projects should be innovative and create employment. The maximum project amount is EURO 1,5 mln. The Netherlands Government will pay up to 50% of the total investment. After two to three year the project should continue on a commercial basis.