Planning Minister Discusses BRICS Role in Global Food Security at St. Petersburg Economic Forum

H.E.Dr. Hala El-Said, Minister of Planning and Economic Development, participated in a session titled "The Role of BRICS in Ensuring Global Food Security" as part of the 27th St. Petersburg International Economic Forum held in Russia from June 5-8. The session was moderated by Irina Abramova, Director of the Institute for African Studies at the Russian Academy of Sciences.

In her speech, Dr. El-Said highlighted the state of food security worldwide, noting that although global hunger, measured by the prevalence of undernourishment, remained relatively unchanged from 2021 to 2022, it is still significantly higher than pre-pandemic levels, affecting approximately 9.2% of the world's population compared to 7.9% in 2019.

El-Said discussed how agri-food systems are subject to market fluctuations due to their dependence on supply and demand dynamics, which can shift due to shocks and disruptions caused by conflict, climate variability, shipping issues, and economic downturns. She noted that about one-third of total greenhouse gas emissions come from agri-food systems, which heavily rely on fossil fuels. According to the Food and Agriculture Organization (FAO), recent data shows a 15% increase in emissions from energy use (electricity, heat, and fuel) in the agriculture sector since 1990, with increases up to 50% in developing regions in Africa, Latin America, and Asia.

El-Said emphasized the role of renewable energy in supporting efforts to reduce food losses while decreasing greenhouse gas emissions.

She added that BRICS countries are major grain producers, accounting for 42% of global grain production and 40% of global grain consumption. Some new BRICS countries are major grain importers, and the inclusion of new members is expected to bring new growth opportunities and enhance trade among BRICS nations. The Middle East serves as a trade link between Brazil and China, with BRICS countries currently representing a quarter of global trade. Trade among BRICS countries is expected to grow further. BRICS+ countries should collaborate in areas like digital agriculture, agricultural research, climate-adaptive farming, best agricultural practices, and new investments in transport infrastructure to improve export logistics.

El-Said highlighted the energy sector, which should focus on renewable sources and undergo a new phase of expansion through partnerships among group members. Egypt is expected to become a hub for renewable energy, especially green hydrogen, while countries like Saudi Arabia and the UAE estimate that at least 44% of their energy mix will come from renewable sources by 2050.

Regarding Egypt's position on food security and the role of BRICS in ensuring it, El-Said said that innovative solutions are needed to support food security in Egypt, particularly in light of global crises and challenges such as the COVID-19 pandemic, geopolitical tensions, and increasing climate risks. Agriculture is a cornerstone of Egypt's national economy, contributing about 15% of GDP, employing over 25% of the workforce, and significantly boosting foreign currency reserves through increased agricultural exports.

El-Said noted the Egyptian government's efforts to ensure food and water security, mentioning the Ministry of Agriculture and Land Reclamation's collaboration with FAO on the Food and Agriculture for Sustainable Transformation (FAST) initiative launched at COP27. Egypt's national strategy for food security includes horizontal expansion by adding new land while considering available resources, applying modern agricultural practices, increasing the competitiveness of agricultural exports, and enhancing livestock, poultry, and fish production activities.

She pointed out the increased trade among BRICS countries and the addition of major oil-producing countries and nations like Egypt, with its strategic geographic location and transport infrastructure. Trade within BRICS+ is expected to continue growing. Member countries should establish common product standards, improve operational methods, and remove market entry barriers to facilitate trade.

El-Said explained that the BRICS+ initiative could create a new platform for forming regional and bilateral alliances across continents, bringing together regional integration blocs where BRICS economies play a leading role. Investment among BRICS countries has steadily increased, with total inbound foreign direct investment rising from $27 billion in 2010 to $167 billion in 2020, much of it flowing into key sectors like natural resources, infrastructure, energy, technology, and manufacturing. These investments aim to strengthen economic ties, promote development, and enhance cooperation among member countries.

Dr. Hala El-Said asserted that the BRICS+ group could lay the foundation for an alternative regional financial structure, noting the establishment of the New Development Bank (NDB) as a cooperative mechanism among BRICS banks. This includes the facilitation of payments in local currencies within the bloc and the BRICS Pay system, a multi-currency digital payment system that allows for payment clearing between local currencies.

She also mentioned the Contingent Reserve Arrangement, which provides liquidity support to member states facing short-term balance of payments pressures or exchange rate fluctuations. Additionally, BRICS+ can take measured steps to increase local currency financing, such as local currency lending and bond issuance by the NDB. The benefits of using local currencies in bilateral trade cannot be underestimated as it helps reduce transaction costs and exchange rate volatility, alleviates balance of payments constraints associated with dollar financing, and enables trade between countries that might be excluded from the dollar payment system.

Regarding the challenges to achieving full food sovereignty for BRICS countries amid increasing geopolitical tensions, El-Said noted that BRICS countries have unique strengths that can contribute to global food security. These include vast agricultural lands, with countries like Brazil, Russia, and India being major agricultural producers, diverse resources due to varying climates, soil types, and water resources, technological innovation with significant investments in agricultural research and development, and large consumer markets driven by growing populations, which demand innovative and sustainable food production methods.

El-Said highlighted the global challenges facing BRICS countries in achieving food security, such as the uncertainty dominating the global economy, climate change impacting agricultural production and food supply, population growth challenging governments to ensure food security, land degradation reducing agricultural productivity, resource scarcity complicating food security challenges, and infrastructure deficits causing significant post-harvest losses.

To address these challenges and ensure food security, BRICS countries can leverage their collective strengths through a collaborative approach. This includes knowledge sharing and technology transfer, joint research and development, infrastructure development, policy harmonization, and consumer awareness campaigns on sustainable food choices and reducing food waste.

In the same context, Dr. Hala El-Said mentioned BRICS cooperation in the agriculture sector, noting the BRICS Agricultural Research Platform (established in 2016) which aims to enhance knowledge exchange and joint research on agricultural challenges faced by member states, and the proposed BRICS Food Security Cooperation Center (2020) for policy dialogue, information exchange, and capacity building on food security issues. These initiatives demonstrate the potential for BRICS cooperation in addressing global food security challenges. By focusing on these research areas, policymakers and stakeholders can develop more effective strategies to leverage BRICS's potential to ensure global food security for all.