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Egypt





           Redefining resilience in Egypt’s agrifood future


        A new study from the Food and Agriculture Organization of
       the United Nations (FAO) Investment Centre in collaboration
       with the World Bank and launched during a virtual event today,
       unveils a variety of climate-smart policy actions and investment
       options set to shape Egypt’s agrifood system’s future.
        This study launches in the wake of the COP28 UAE Declara-
       tion on Sustainable Agriculture, Resilient Food Systems, and Cli-
       mate Action, where Egypt was one of 134 countries committing
       to building sustainable agriculture and food systems fit for the
       future.
        “At COP28, Egypt and other countries endorsed the declara-
       tion to scale-up access to finance to adapt and transform agricul-  The  study  focusses  on  four  vital  subsectors  –  dairy,  dates,
       ture and food systems to respond to climate change,” said Mo-  maize and wheat – which play crucial roles in terms of food se-
       hamed Manssouri, Director of the FAO Investment Centre. “This   curity, import dependence, and employment.
       new study shines a light on Egypt’s commitment to climate-smart
       agriculture, by accelerating investment and innovation, promot-  At its core is the adoption of climate-smart agriculture (CSA)
       ing ecosystem resilience and improving livelihoods – including   technologies, promoting high-value subsectors, enhancing re-
       for rural communities and smallholder farmers.”      source efficiency, and addressing adoption barriers.
                                                              “We highlight how investing in these game-changing tech-
             Sustaining resilience against the odds         nologies can promise ‘triple-wins’ – they can boost productivity,

        Egypt’s agrifood system has weathered economic shifts and   strengthen resilience against climate change and reduce its im-
       societal transformations. Unlike other middle-income countries,   pact.” said lead author Jozimo Santos Rocha, Officer-in-Charge
       its agriculture sector has held on to its GDP and employment   of Asia and the Pacific Service, Senior Agribusiness Officer, FAO
       shares, driving economic growth and diversification.  Investment Centre.
                                                              With investments in CSA, the study reveals, Egypt can dra-
        In 2020, it accounted for more than 24 percent to Egypt’s GDP,
       employing over 20 percent of the population. Foreign exchange   matically increase efficiency in land, water and energy usage.
                                                            Not only will this lead to job creation, but it will also enhance
       from agrifood exports also saw a promising uptick, soaring to   productivity and elevate food and nutrition security.
       USD 2.47 billion in 2021–2022.
        However, there’s a significant challenge downstream, where    Accelerating the adoption of CSA
       less than 10 percent of crops undergo processing, and a massive
       68 percent of agrifood system jobs remain farm-related.  Despite their potential, Egypt faces roadblocks in embracing
                                                            climate-smart technologies. High initial costs and difficulties in
        The landscape is further complicated by Egypt’s burgeon-  accessing affordable financing are some of the barriers particu-
       ing population, which has skyrocketed from 56 million in 1990   larly affecting smallholder farmers.
       to nearly 104 million in 2021. Evolving consumer preferences
       now favour meat, dairy, oilseeds, and sugar. Despite progress in   Crucially, Egypt’s small-scale farming and land fragmentation
       improving food security, undernourishment rose to more than 5   make it challenging for many to adopt these technologies. Over-
       percent in 2019–2021.                                coming these hurdles means continuing to help smallholders
                                                            access markets and financial services.
        But it’s not just population pressures. The relentless expansion
       of urban centres poses a considerable challenge. In the past two   Focusing on high-value subsectors and increasing inclusive
       decades, urban sprawl has swallowed up over 75 000 hectares   access to matching grants and credit guarantees is paramount to
       of fertile land.                                     accelerate the adoption of climate-smart agriculture technolo-
                                                            gies.
        As climate change causes temperatures to rise and rainfall to
       diminish, Egypt faces substantial threats to its food crop yields   With climate-smart policies and sustainable investments,
       by 2050. Agriculture is expected to be hit hard, with maize, sugar   Egypt can safeguard its food supply, fortify its economy and en-
       crops, and fruits and vegetables likely facing declines of up to   able farmers to generate a greener, more resilient future.
       19 percent, considering current practices.

        Pivot to climate-smart policies and investments
        To combat these challenges, Egypt’s Government has em-
       barked on a transformative path, shifting its focus toward sus-
       tainable production and high-value exports.
        This transition aligns with the Sustainable Agricultural Devel-
       opment Strategy and the National Structural Reform Programme
       2021–2024 – backed up by increased public investment in cru-
       cial areas like research and development, extension, and digi-
       talization.

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