International Cooperation Minister Rania Al-Mashat said on Wednesday that the European Bank for Reconstruction and Development (EBRD) will provide a $200 million loan to Egypt and four other countries in the Eastern Mediterranean, Eastern Europe and Black Sea regions to help promote sustainable development in the agricultural sector.
The minister added that the loan aims to improve local farmers’ capabilities to adapt to climate change through smart agricultural practices.
The loan will also finance purchases of agricultural commodities in the selected countries and the company’s local subsidiaries will be responsible for distributing, processing, storing these commodities.
Mashat said that the funding comes in line with listing new global partnerships launched by the ministry, and based on three main pillars; People at the Core, Projects in Action, and Purpose as the Driver to highlight the development partnership in a way that achieves sustainable development in all sectors.
Within the framework of this strategy, the ongoing portfolio of cooperation with multilateral and bilateral development partners in the agricultural sector amounts to $545.52 million, directed to 13 projects, benefiting more than 1.5 million beneficiaries of men and women in 27 governorates and providing 15,000 job opportunities.
“The loan comes amid the corona crises, which has multiplied threats to food security around the world,” Al-Mashat pointed out.
Olam International Limited, a leading global trader in agricultural commodities will deliver the EBRD’s $200 million loan to strengthen the agricultural sector’s value chain and trade.
The European Union (EU) and the Taiwan Business-EBRD Technical Cooperation Fund would provide donor support to develop new methodologies and processes for managing climate-related risks and stress testing in Egypt.