Egypt aims to invest LE 82.9 billion in agricultural sector in 2022-2023
CAIRO – July 26, 2022: The Egyptian Ministry of Planning aims to invest LE = 82.9 billion in the agricultural sector in the next financial year 2022/2023, compared to LE 62.9 billion planned in 21/2022, with a growth rate of approximately 31.8%.
The ministry also aims to increase agricultural production from LE 1.2 trillion planned in 21/2022 to LE 1.37 trillion in plan 22/2023, according to a report in which the ministry reviewed the most important targets. important in the agriculture and irrigation sector. in the economic and social development plan for the 2022/2023 financial year.
For her part, the Minister of Planning and Economic Development, Hala EL-Said, indicated in a press release on Tuesday that the agriculture and irrigation sector has a double importance, since it represents – on the one part – one of the main pillars of food security, and on the other hand – it is one of the main pillars to support the production capacities of the national industry, and the activities of transport, trade and associated logistics.
More than half of Egypt’s population lives in rural areas
El-Said explained that agriculture is the main source of income and employment due to its vast geographical area, and there are more than 55 percent of Egypt’s population in rural areas, where the main reliance lives -to agricultural activities and related activities of animal husbandry, fish and fish production, and transport, storage and marketing services,
Moreover, it is one of the three sectors on which the National Structural Reform Program is based, along with manufacturing, communications and information technology, given that it constitutes about 11% of GDP at current prices in the plan year, 15% of non-oil commodity exports and absorbs about 25% of the total labor force.
The minister referred to the signing of a technical cooperation protocol to update the 2030 sustainable agricultural development strategy with the Food and Agriculture Organization of the United Nations (FAO), within the framework of the national program for the period (2018-2022), which focuses on three government priorities, including improving agricultural productivity and raising the level of food security, as well as the sustainable use of natural agricultural resources.
Objectives of the 22/2023 plan for the agriculture and irrigation sector
Considering the objectives of plan 22/2023 for the agriculture and irrigation sector; the Minister of Planning said that it is planned to increase investments in the sector to reach LE 82.9 billion in the year of the plan, compared to LE 62.9 billion planned in 21/2022, with a rate of growth of around 31.8%.
In addition, agricultural production is expected to increase by 12.8 percent from LE 1.2 trillion planned for the year 21/2022 to LE 1.37 trillion in the plan for the year 22/2023 at prices current accounts, which is equivalent to 10 percent of gross domestic production. (GDP), and at constant prices at around LE 12.7 trillion in the plan year with a growth rate of 4.4 percent.
It is also planned to increase the agricultural domestic product to LE 959.7 billion in the year of the plan at current prices, and to LE 877.9 billion at constant prices, and to improve agricultural productivity to exceed the area cultivated of 19 million feddans by the end of the year 22/2023, with the development of agricultural exports to reach about 3.6 billion dollars in the year of the plan.
On the major trends in the sector; the report of the Ministry of Planning indicated that the plan pays great attention to improving the economy of the agricultural sector by adopting five basic orientations, which consist of achieving a steady increase in investments for agricultural and irrigation activities in accordance with the objectives of and the vertical expansion during the year of the plan, the development of the performance of the agricultural sector and the improvement of the efficiency of the services of the sectors related to agricultural activity, and the activation of ‘a set of national programs aimed at developing the activities of the agricultural sector, in addition to the expansion of the implementation of modern irrigation projects, the lining and rehabilitation of canals, and the development of water systems and irrigation to maximize the use of water resources.
Integrated agricultural development programs
The plan for FY22/2023 includes a set of integrated agricultural development programs; These are the Horizontal Expansion Program, which includes the New Delta Projects, the South Valley Development Project (Toshka), the Egyptian Rural Development Project, and the North and Central Sinai Development Project. .
The plan also includes a vertical expansion program, which aims to increase the productivity of an acre by 15-20%, as well as a food security program and a contract farming program.
Added to this are the seed production programme, the animal production development programme, as well as the fish farming programme, and the water resources development and rationalization programmes, which include a set of programmes, namely the Canal Rehabilitation and Lining Project, Field Irrigation Development Project, National Greenhouse Project and National Lakes Development Project.
Agricultural Export Development Program
The plan for the year 22/2023 also includes the agricultural export development program, through which Egypt enjoys competitive advantages in many agricultural products, allowing it to access a wide range of markets.
Under the 22/2023 plan, it is planned to increase agricultural exports to around 6 million tonnes, compared to an expectation of 5.25 million tonnes for the year 21/2022, which would allow the evolution agricultural export earnings to exceed $3.6 billion. in the year of the plan.
Achieving these objectives requires two major lines of action: firstly, the development of agricultural crops with global export capacity – which have a productive surplus after the saturation of the local market, and secondly, the expansion of access to foreign markets.