Egypt backs potato processing with US$8 million Sokhna project

EGYPT – Egypt has launched a new agri food processing project in the Sokhna industrial zone with an investment of US$8 million, as authorities push to grow local processing and exports from a strong potato base.

The General Authority of the Suez Canal Economic Zone announced the project on December 23, confirming an agreement between Pitcairn and MDC, the industrial operator at Sokhna.

The plan targets frozen potato and vegetable products alongside ready to eat meals for the local market and export buyers.

Processing plan and timeline

SCZONE said the project will set up an agri food complex that combines frozen food lines with a large scale meals operation. Managers expect construction to run for two years, after which the site will start output in early 2027.

In a statement, the authority said, “Production is expected to start in early 2027, with a production capacity of 18,000 tons of frozen potatoes and vegetables per year, in addition to 73 million ready to eat meals each year to serve aviation, hospitality, hospital, industrial activities, humanitarian efforts and other sectors.”

Once the plant opens, it will offer a steady outlet for local potato growers and add more value inside Egypt rather than sending raw produce abroad. The focus on aviation catering, hotels, hospitals and aid supply chains reflects steady demand for ready meals that meet safety and volume needs.

Egypt’s potato base

Egypt ranks as Africa’s largest potato producer and sits among the top ten producers worldwide. Data from the Central Agency for Public Mobilization and Statistics shows potato output rose by 9.7 percent to 9.6 million tonnes in 2024.

Only 11 percent of that volume went to export markets, while most served local food use and seed needs.

The Sokhna project fits a wider effort to expand processing capacity that can absorb more of the harvest at home. By turning fresh potatoes into frozen products and meals, operators can reduce waste, smooth price swings and support farm incomes.

Globally, the potato processing market reached about US$37.9 billion in 2023 and analysts expect it to grow to around US$56.5 billion by 2030, supported by demand for convenience foods and foodservice growth. Frozen potato products hold the largest share of the market, while snacks such as chips lead by use.

Egypt’s domestic processed potato segment should see steady growth through 2031, driven by foodservice, retail freezers and catering demand. With new capacity at Sokhna and similar projects under way, the country aims to capture more value from its harvest and strengthen its role in regional food supply chains.

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