Capital Agro launches US$25M logistics complex to enhance Egypt’s frozen food supply chain for hospitality

EGYPT – Capital Agro for Import & Export Group has launched a US$25 million logistics complex dedicated to frozen food storage and distribution, significantly bolstering Egypt’s hospitality sector supply chain.

The investment includes US$15 million allocated for 2025, with an additional US$10 million planned through 2027.

The strategically located facility in Belbeis, Sharkia Governorate, spans 30,000 square metres and offers storage capacity exceeding 30,000 pallets.

Situated near key seaports and agricultural zones, the complex enables direct access to production sources and consumer markets, essential for the hospitality industry’s seasonal and bulk demands.

Capital Agro is pioneering Egypt’s cold storage sector by integrating smart technologies like artificial intelligence for optimising temperature control, inventory tracking, and quality assurance.

Advanced washing, sorting, and packaging lines for fruits and vegetables form part of the US$25 million facility, positioning it among Egypt’s largest logistics projects this year.

Operating under a 25-year usufruct agreement on land owned by Sharkia National Food Company, the initiative supports Egypt’s food security goals by expanding national storage capacity and enhancing supply chain efficiency crucial for restaurants, hotels, and catering services.

Aligned with sustainability demands, the project leverages solar and renewable energies to minimise environmental impact. Capital Agro’s nearly 13 years of cold storage expertise and diversified retail operations strengthen hospitality suppliers’ reliability.

This comprehensive logistics solution promises to revolutionise frozen food availability and quality throughout Egypt’s hospitality sector, driving economic growth and supporting regional trade in a rapidly evolving market.

The hospitality supplier environment in Egypt and similar emerging markets is growing robustly, driven by expanding tourism and rising domestic demand.

The Egypt hospitality market was valued at over US$6 billion in 2024 and is forecast to grow at a CAGR of around 4.2% through 2033, reaching nearly US$9 billion.

This growth fuels demand for food and beverage suppliers, cold storage providers, and logistics companies that serve hotels, resorts, and restaurants.

Suppliers face increasing expectations for efficient delivery, real-time data tracking, and sustainability practices.

Technology adoption, such as AI-enabled inventory management and renewable energy usage, is becoming a key differentiator.

Hospitality chains and independent establishments alike demand consistent supply with minimal waste risk.

This environment fosters opportunities for integrated logistics platforms like Capital Agro’s new frozen food complex, crucial for supporting Egypt’s hospitality sector expansion and food security.

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