Egypt has secured a new foreign investment in its agro-processing sector as Polish frozen food producer Fruitful moves to establish operations in the country through a partnership with Elsewedy Industrial Development. The agreement, confirmed on 15 December by Egypt’s General Authority for Investment and Free Zones (GAFI), will see a horticultural processing facility developed in 10th of Ramadan City, strengthening Egypt’s push to move up agricultural value chains and expand export-oriented food manufacturing.

The project will be built on a 0.9-hectare site and will focus on processing fruit into frozen products using individually quick freezing (IQF) anad freeze-drying technologies. Once operational, the plant is expected to produce up to 600 tonnes of frozen food per month, with the bulk of output destined for international markets. While the investment value has not been disclosed, authorities estimate the project will generate more than 5,000 direct and indirect jobs across farming, processing, cold storage and logistics.

Fruitful’s decision to locate its investment in Egypt reflects the structural advantages that have reshaped the country’s horticultural sector over the past decade. Egypt combines large-scale agricultural production with expanding industrial zones, improving transport infrastructure and trade agreements that provide preferential access to European, Middle Eastern and African markets. The 10th of Ramadan industrial city has emerged as a major hub for food processors seeking proximity to farms, ports and refrigerated logistics networks.

For Egyptian farmers, the addition of new processing capacity carries significant implications. Egypt is Africa’s largest producer of strawberries, with average annual output of about 613,500 tonnes between 2019 and 2023, according to Tridge. It is also the continent’s second-largest mango producer, with production estimated at around 1.5 million tonnes per year. Despite these volumes, much of the fruit has traditionally been sold fresh or exported with limited processing, exposing producers to price volatility, post-harvest losses and narrow seasonal marketing windows.

Frozen and freeze-dried processing extends shelf life and opens access to higher-value markets, particularly in Europe, where demand for standardised, traceable fruit products continues to rise. For exporters, this means more predictable revenue streams and reduced waste. For workers, it supports year-round employment beyond harvest seasons, especially for women and young people, who dominate sorting, grading and processing activities.

The investment also reflects a broader African trend toward locating processing closer to production zones. Across the continent, the FAO estimates that post-harvest losses for fruits and vegetables can reach up to 40 percent in some countries due to inadequate storage and processing. In response, governments are increasingly promoting agro-industrial development to reduce losses, strengthen food systems and enhance export competitiveness.

Egypt’s fruit sector already plays a significant role in the national trade balance. FAO data show that fruit exports generated US$2.46 billion in 2023, making Egypt Africa’s second-largest fruit exporter by value, after South Africa. Citrus, strawberries and grapes dominate shipments, with Europe as a key destination. Expanding processed exports could allow Egypt to capture greater downstream value while cushioning earnings against climate-related shocks that affect fresh produce.

From a sustainability perspective, the project also highlights issues around energy use and cold-chain efficiency, particularly in a region facing water stress and rising temperatures. Egypt has invested heavily in industrial utilities and renewable energy in recent years, and the environmental footprint of new processing facilities will increasingly shape their long-term competitiveness.

For Fruitful, Egypt offers a scalable production base capable of meeting international standards. For Egypt, the partnership signals continued confidence from European investors at a time when global agri-food supply chains are under pressure from climate risks, regulatory changes and shifting consumer preferences.

As global markets impose stricter sustainability and traceability requirements, investments that anchor processing, jobs and logistics locally are becoming central to Africa’s export competitiveness. The Fruitful project reinforces Egypt’s role as a regional hub for fruit processing and export-oriented agribusiness, while supporting the country’s broader industrial and trade ambitions.