Egypt receives financial support from the African Development Bank
The The African Development Bank’s Board of Directors has approved a $271 million loan to finance Egypt’s Food Security and Economic Resilience Support Program to support efforts to mitigate the effect of the global shocks of the Russian-Ukrainian conflict on the national economy and to maintain resilience.
Supporting the food security response and strengthening the private sector and fiscal resilience are the two main components of the initiative.
The first component aims to increase national agricultural productivity and reduce the risks to access to food for people in vulnerable situations.
The program will support broad-based growth by boosting agricultural production and sustainability, expanding local farmers’ access to subsidized fertilizers, and giving them more incentives to grow wheat.
The second element will help improve the resilience of Egypt’s fiscal and private sector, as a strong private sector can help mitigate the negative economic and social effects of exogenous shocks.
The African Development Bank’s Managing Director for North Africa, Mohamed El Azizi, explains.
“This new operation incorporates both structural and emergency precautions.
Its objectives are to “strengthen food security and improve the resilience of the private sector and public finances”.
The African Development Bank and its co-financiers provided $97.3 million in stand-alone budget support to Egypt, while the African Emergency Food Production Facility provided total financing of $173.7 million which was approved by the Board of Directors in May 2022.
Egypt is one of the founding members of the African Development Bank Group.
Since the start of Bank Group lending operations in 1974, it has financed projects in the areas of infrastructure development (transport, power, water supply and sanitation), communications, finance, industry and social sectors, as well as capacity building and economic and institutional policies. reforms.