Planning Ministry participates in the issuance of MENA chapter in the latest Global Food Policy Report
04 May 2021
The Ministry of Planning and Economic Development participated in preparing the chapter on the Middle East and North Africa in the Global Food Policy Report 2021, issued by the International Food Policy Research Institute (IFPRI).
The chapter deals with the effects of the Coronavirus on agri-food systems and household incomes in Egypt, Jordan, and Sudan.The report showed the difference in the size of the disruptions resulting from the Corona pandemic among the economies in the region, indicating that the percentage of losses in Egypt was relatively limited as a result of avoiding a complete closure and investing in a huge stimulus package.According to the report's findings; Agri-food systems showed relative flexibility in the Middle East, where the percentage of decline in agricultural food output ranged between 3-9% in Egypt, Yemen, and Sudan, and reached about 38% in Jordan, and agriculture was one of the least affected sectors in Egypt and Sudan. The report indicated that some value chains have enjoyed a significant increase in demand, such as medicinal and aromatic plants, supported by increased demand for exports, and that the agri-food system represents a strong basis for recovery and transformation after the Corona pandemic due to its relative resilience.The report pointed out that some economies and sectors are recovering at a faster rate based on the national policies adopted. The stimulus package, which amounted to 100 billion in Egypt, is estimated to have limited the decline in the gross domestic product (in the period from April to June 2020) from 8.7% to 1.1% only. As the stimulus package supported the hardest-hit sectors, including export, tourism, and real estate.
This is in addition to the government's easing of credit restrictions for companies, providing tax incentives, and expanding cash transfer programs, and the report referred to the investment plan that Egypt is implementing now at a value of EGP 280 billion, which led to improving economic performance in the second half of 2020.The report indicated that the demand for digital tools has increased dramatically during the pandemic, and according to recent studies, those sectors that have been digitally transformed, such as food delivery.Moreover, the pandemic has provided an opportunity to accelerate the digitization process and increase private and public investment.Dr. Ahmed Kamali, Deputy Minister of Planning and Economic Development affirmed that the planning ministry holds consultations with other concerned ministries, business associations, civil society, and academia to assess the effects of the pandemic on the components of GDP, employment, poverty, and the balance of payments since the beginning of the Corona pandemic.Kamali pointed out that informal employment has been targeted and policies have been developed to support it in light of the pandemic and at the sectoral level, the tourism and industry sectors have been targeted and supported.“ICT-based solutions are being targeted because they are necessary to mitigate the negative impacts of the pandemic, in addition to financial support has been provided to help companies cover their operating expenses and thus prevent bankruptcies,” he added.The Deputy Minister of Planning and Economic Development explained that due to some opportunities generated by the crisis, work is now underway to reform the business climate and increase the productivity of supply chains in Egypt to be more competitive after the pandemic