The hard-currency shortage in Egypt has now affected its capacity to import energy. The country, which relies on gas imports to run its power stations, does not have sufficient forex reserves to cover its energy needs, a situation exacerbated by the increase in electricity consumption in summer and three heatwaves already.
According to state-owned newspaper Al Ahram, the government has imposed restrictions on the use of electricity and a curfew enforcing the early closure of shops, supermarkets, and pharmacies, as well as generalized power cuts lasting several hours each day. The same source added that the restrictions would last until the third week of July.
The agricultural sector appears to be minimally affected by the crisis and the resulting restrictions, so far, according to statements from several growers and exporters.
Mohammed Ezzat, CEO of Green Nile Egypt, reports power cuts. "We have received a schedule of power cuts lasting 2 hours a day. However, our activities remain normal because we use generators when the electricity is cut off. Our facilities, which include a freezing plant, a cold store, and a packing center, are all operating normally." Green Nile's facilities are located in the cities of Al Obour, Cairo, and Al Ismailia.
Elsayed Elgohary, a strawberry grower and owner of Marvel Farm, said that "the power cuts have already started to decrease and we are almost back to normal, which is about an hour and a half a day. Given the current timing, when our season is already over, the power cuts doesn't bother us in the slightest."
Ibrahim Gadallah, CEO of Janafresh, a citrus packing house based in Alexandria, says, "Our packhouse and cold storage are in an industrial zone where electricity doesn't go off often. We are not affected by the restrictions on electricity use, and I hope that will remain the case."
Amr Kadah, export manager at Fruit.farm, and Mohamed Hassan, export manager at Al Gamal, whose facilities are located at Cairo Alexandria desert road and Al Ismailia City respectively, report no power cuts."
The energy crisis is hitting the agricultural sector differently, however, by paralyzing fertilizer production plants. According to economic analyst Khaled Al-Sayed, "In reality, it is not the direct power cuts affecting farms, packaging plants, cold stores or freezing lines that are the worst problem, but rather the disruption to the entire fertilizer sector. Most of the plants have stopped operating due to the lack of natural gas and the irregularity of the electricity supply."
Al-Ahram reports that "Four major fertilizer producers in Egypt have suspended their operations over the past few days due to a severe gas supply shortage". The same source adds that the fresh produce sector is so far unaffected, provided that the gas shortage does not exceed one month.
For more information:
Mohammed Ezzat
Green Nile Egypt
Tel: +20 100 028 5606
Email: [email protected]
Elsayed Elgohary
Marvel Farm
Tel: +201002496633
Email: [email protected]
Ibrahim Gadallah
JanaFresh
Tel: +20 100 366 9486
Email: [email protected]
Amr Kadah
Fruit.Farm
Tel: +20 100 928 8377
Email: [email protected]
Mohammad Hassan
Al Gamal for Import and Export
Tel: +201157845538
Email: [email protected]
Khaled Al-Sayed
Hakawi Fi Elbusiness (Business Stories)
Tel : +20 109 044 0929
Email: [email protected]