Egypt is looking to increase agricultural exports by over 70% by the end of the decade, with the government targeting USD 19 bn annually by 2030, up from around USD 11 bn exported during the 2024 season. While the government has doubled down on efforts to expand cultivated land, boost production efficiency, and upgrade associated logistics infrastructure, the sector continues to face complex challenges related to water scarcity, climate change, and rising domestic demand.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Policymakers and farmers are eager for solutions, which include expanding smart agriculture, adopting modern irrigation technologies, and strengthening public-private partnerships (PPP) to support farmers and open new markets, according to participants of the Food Security Dialogue: A New Era for Egyptian Agriculture seminar. The Association for the Development of Horticultural Exports, the Egyptian Businessmen Association, and Germany’s BASF organized the event, which was attended by EnterpriseAM.

The agricultural sector is a key pillar of Egypt’s economy, employing a significant portion of the workforce and contributing 14% of GDP. Crop production represents 55% of this output, followed by livestock and poultry at 35%, and fisheries at 10%, according to Chairman of the Export Council for Agricultural Crops Abdel Hamid Eldemerdash.

There are a few reasons behind the recent growth in agricultural exports, including the activation of agricultural quarantine systems, farm coding, and strict adherence to global quality and safety standards, Agriculture Minister Alaa Farouk said during the event. Improvements in logistics infrastructure and the launch of new shipping lines, such as the ro-ro line between Damietta and Trieste in Europe, have also played a role.

New strains have played a part in increasing productivity, including wheat, which saw productivity rise to 19.5 arbed per feddan due to new strains developed by the Agricultural Research Center, according to Farouk. The minister also pointed to progress made with modern silos and advanced irrigation systems, as well as promising national projects like the New Delta reclamation project and the Sanabel Sono project.

But more needs to be done to address ongoing challenges, including water scarcity, climate change, geopolitical pressures, and a population growth exceeding 2.5 mn annually, Farouk said. There needs to be more investment in organic pesticides and encouragement for biological pest control, he said. The sector also needs increased support and funding for training and awareness programs for small farmers following the halt of external funding from USAID, participants noted.

Modern technologies and smart solutions also have a role to play. Smart agriculture and advanced irrigation techniques such as drip irrigation are considered a key step toward sustainable agricultural development amid water scarcity and desertification risks, Association for the Development of Horticultural Crops head Mohsen Elbeltagi said.

Egypt should also focus on high-value crops, identifying the most attractive crops for local consumption and export over the next 5-15 years. BASF Senior Vice President of Agricultural Solutions for Europe, the Middle East, Africa, and CIS countries Gustavo Palerosi said. Egypt should aim to become a global leader in one or two products, like blueberries, Palerosi added.

The sector should also look toward the implementation of AI, according to Palerosi. Agriculture, as the oldest profession, must also modernize, use fewer natural resources, and reduce its environmental footprint, he argued.

Your top green economy stories for the week:

  • Chinese renewables firm Sungrow is looking to set up a battery storagefactory with an annual capacity of 10 GW in Egypt, as part of the country’s plans to localize components for renewables.
  • Egypt is among 13 countries in line for USD 634 mn in green financing from the European Bank of Reconstruction and Development. Jordan and Morocco are also getting a piece of the funds under the newly-launched Greening Financial Systems: Delivering Climate Finance for All program.
  • The EBRD, EU, and Green Climate Fund (GCF) will extend USD 50 mn in financing to the Suez Canal Bank to boost green lending and trade finance. The package includes a USD 25 mn loan under the EBRD’s Green Economy Financing Facility — with USD 3.75 mn co-financed by the GCF — and an uncommitted USD 25 mn to the bank’s trade finance limit.
Tags: