Egypt’s Ministry of Planning and Economic Development reviews the objectives of the agriculture and irrigation sector
26 July 2022
The Ministry of Planning and Economic Development issued recently a report reviewing the most important objectives of the agriculture and irrigation sector in the economic and social development plan for the fiscal year 2022/2023.
H.E. Dr. Hala El-Said , Egypt’s Minister of Planning and Economic Development, said that the agriculture and irrigation sector occupies a double importance, as it represents - on the one hand - one of the main pillars of national food security and on the other hand, it is one of the main pillars of supporting the productive capacities of the national industry, and its related activities. Transport, trade and logistics activities.
El-Said explained that agriculture is the main source of income and employment due to its wide geographical area, and there are more than 55% of the Egyptian population living in rural areas, where the main dependence on agricultural activities, and the related activities of animal, poultry and fish production, and transportation, storage and marketing services.
The agriculture sector is also one of the three sectors on which the National Structural Reform Program is based, along with the manufacturing industry, communications and information technology, given that it constitutes about 11% of the GDP at current prices in the plan year, 15% of non-oil commodity exports, and absorbs about 25% of the total Man power.
El-Said referred the signing of a technical cooperation protocol to update the sustainable agricultural development strategy 2030 with the Food and Agriculture Organization of the UN (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 security, food and sustainable use of natural agricultural resources.
With regard to the objectives of the 22/2023 plan for the agriculture and irrigation sector; El-Said stated that it is intended to increase the sector’s investments to reach EGP 82.9 billion in the year of the plan, compared to EGP 62.9 billion expected in 21/2022, with a growth rate of about 31.8%, with an increase in agricultural production from EGP 1.2 trillion expected in 21/2022 to EGP 1.37 trillion.
With a growth rate of 12.8%, equivalent to 10% of the gross domestic product, and at constant prices to about 12.7 trillion pounds in the year of the plan, with a growth rate of 4.4%.
It is also intended to increase the agricultural domestic product to EGP 959.7 billion in the year of the plan at current prices, and to EGP 877.9 billionat constant prices.
The plan also intended to improve agricultural productivity to exceed the cropped area 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 main trends of the agricultural sector; The report of the Ministry of Planning indicated that the plan pays great attention to improving the economics of the agricultural sector by adopting five main directions, which are to achieve a steady increase in investments directed to agriculture and irrigation activities in line with the objectives of horizontal and vertical expansion during the year of the plan.
It also focuses on developing the performance of the agricultural sector, improving the efficiency of service sectors related to agricultural activity, activating a set of national programs aimed at developing the activities of the agricultural sector, in addition to expanding the implementation of modern irrigation projects, lining, rehabilitating canals, and developing watering and irrigators to maximize the use of water resources.
The plan for the fiscal year 22/2023 includes a set of integrated agricultural development programs; it is 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% to 20%, a food security program, a contract farming program, in addition to a seed production program, an animal production development program, a fish farming program, and water resources development programs. Rationalizing the use of water, which includes a set of programs, namely the project for rehabilitation and lining of canals, the project for developing field irrigation, the national project for greenhouses, and the national project for the development of lakes.
The plan for the year 22/2023 also includes the Agricultural Exports Development Program, whereby Egypt enjoys competitive advantages in many agricultural commodities, enabling it to access a wide range of markets.
Within the framework of the 22/2023 plan, it is targeted to increase agricultural exports to about 6 million tons, compared to the forecast of 5.25 million tons in the year 21/2022, which allows the development of agricultural export earnings to exceed $3.6 billion in the year of the plan.
Achieving these goals comes through two main axes of action: first, the development of agricultural crops with global export capabilities - which have a productive surplus after the saturation of the local market, and secondly, the expansion of access to foreign markets.