Egypt allocates US$922M for local wheat purchases, says Finance Minister

Egypt — Egypt’s Minister of Finance, Mohamed Maait, has announced the allocation of 44 billion Egyptian pounds (approximately US$922.4 million) to finance the purchase of locally produced wheat from farmers.

As detailed in a Cabinet statement, this initiative emphasizes the government’s commitment to supporting the agricultural sector, a critical component of the nation’s economy and food security.

Minister Maait highlighted that this allocation is part of a broader strategy to incentivize domestic wheat production.

By offering financial support to farmers, the government intends to stimulate agricultural investment and enhance overall output in a bid to reduce Egypt’s dependency on wheat imports, thereby ensuring a more stable and secure food supply for the country.

The allocation follows Egypt’s decision to revise its wheat import target for the current year, aiming to cut imports by 17 percent to a new target of 5 million tons.

This strategic decision is underpinned by an increase in the domestic wheat supply target, which has been raised to 3.7 million tons, up from the prior target of 3.5 million tons.

Prioritizing the agricultural sector

The new national budget reflects the government’s prioritization of agriculture, with an additional 40.5 billion pounds allocated to support productive and export activities within the sector.

Minister Maait outlined several key initiatives under this budget, including land reclamation projects, the expansion of greenhouse production, and the adoption of modern agricultural technologies.

These measures aim to boost the competitiveness of Egyptian agricultural products in international markets, potentially increasing exports and generating jobs in rural areas.

In 2023, Egypt’s agricultural sector recorded a remarkable 25% increase in export volume, reflecting the sector’s growing efficiency and international reach. 

In a May 21 announcement, El-Sayed El-Quseir, Egypt’s Minister of Agriculture and Land Restoration, revealed that the country exported 7.5 million tonnes of agri-food products in 2023. 

This figure marks a significant increase from the 6 million tonnes exported the previous year, setting a new record for the country.

According to the minister, the export surge in 2023 translated into substantial financial gains for Egypt’s agricultural sector. Export revenues reached a staggering US$8.8 billion.

By investing in the agricultural sector, Minister Maait said  Egypt aims to create a more resilient and self-sufficient food supply chain.

The focus on modernizing agricultural practices and supporting farmers through financial incentives is expected to yield significant long-term benefits, including increased productivity, higher incomes for farmers, and a stronger position in global agricultural markets.

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