Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, opened the regional workshop organized by the International Fund for Agricultural Development (IFAD) under the title “Working with the Private Sector to Finance the Transformation of Food Systems,” with the participation of Fund officials, government representatives, and private sector companies. This is in light of the close partnership between the Arab Republic of Egypt and the International Fund for Agricultural Development, and the joint efforts to enhance food security.
The workshop aimed to review mechanisms for enhancing work between the International Fund for Agricultural Development (IFAD) and the private sector, and discuss the Fund’s private sector strategy that aims to strengthen partnerships around the value chain and rural finance, as well as discuss opportunities for cooperation between the government and private sectors to enhance investments in sustainable food systems.
During her speech, Dr. Rania Al-Mashat said that the workshop represents a very important opportunity to exchange visions and ideas between relevant parties from the Near East and North Africa, Europe, and Central Asia, to discuss the current and future challenges facing us in the field of transforming food systems towards more sustainable systems that contribute In eliminating poverty and hunger, adding that the issue of food security is a very complex issue that can only be addressed through comprehensive strategies that take into account the social, economic and environmental factors that directly or indirectly affect access to food in sufficient quantities and quality. High, in order to address this complex issue, there must be a continuous process of innovation and real cooperation between all parties involved, whether they are governments, international organizations, civil society, or the private sector. In this context, the private sector is considered an essential partner in achieving this required transformation, as it contributes effectively to providing innovative solutions, and works to provide advanced technical expertise and the necessary financial resources that support and complement government efforts to achieve food security.
Dr. Rania Al-Mashat added that Egypt’s main development partners, such as the International Fund for Agricultural Development (IFAD), play a very important role in this field, by providing innovative financial tools and mechanisms to reduce risks with the aim of attracting private investments in rural development projects and improving food systems, pointing out that These investments, supported by partnerships with international financial institutions, contribute to driving change in the agricultural and food sector and contribute to improving the living conditions of farmers and rural communities. However, despite the available opportunities, we still face many challenges that stand in the way of greater private sector participation in this necessary transformation.
She stated that there is a severe financial gap that requires us to address it urgently, explaining that the amounts required to transform food systems and empower small farmers in rural areas are many times the funding currently available. In fact, public resources alone cannot be relied upon to fill this large gap. Over the past two decades, global development funding (ODA) directed to the agricultural sector has stabilized at only 5 to 6% of total official development aid, which is equivalent to about $10 billion in recent years, an amount that is not commensurate with the needs of the global agricultural sector. . At the same time, studies indicate that investment in the agricultural sector is one of the most effective investments in reducing poverty rates, as its impact exceeds investment in other sectors in terms of the ability to improve living standards and reduce poverty in rural areas.
The Minister of Planning, Economic Development and International Cooperation continued that it is necessary to bridge this financial gap and invest the available capital more effectively, through the use of innovative financial tools that stimulate private capital to invest in these vital areas.
She highlighted the national platform for green projects, the “Novi” programme, the link between water, food and energy projects, through which cooperation was made with international financial institutions to develop innovative financing mechanisms aimed at encouraging private sector investments in green projects. Using a combination of grants, concessional financing, and credit guarantees, the government has enabled it to attract significant private sector interest in renewable energy and agriculture projects.
She stressed that these efforts are in line with the Egyptian government’s strategy to shift towards a green economy and enhance food security, and they represent a role model in how to encourage the private sector to participate effectively in sustainable development projects that benefit the entire society and contribute to improving the standard of living of the most needy groups in the country. Rural and remote areas. These initiatives represent a decisive step towards achieving the sustainable development goals and enhancing Egypt’s ability to confront global environmental and economic challenges.
Al-Mashat stressed that, through the main development partner in each axis of the program, the government is working to enhance the involvement of the private sector and attract its investments towards vital sectors.
Al-Mashat added that the absence of data and effective communication hinders our ability to coordinate efforts and make evidence-based decisions. In order to address this problem, the Ministry of Planning, Economic Development and International Cooperation launched the (Hafiz) platform for financial and technical support for the private sector, which aims to fill an information gap by making various financial and non-financial services available from development partners to private sector companies. The platform provides more than 90 financial and advisory services, such as concessional development finance, equity investments for startups, trade finance, guarantees, and other financial instruments. It also offers hundreds of local and international tenders and opportunities.
She stated that by investing in human capital, we can enable small producers and rural people to establish relationships with the private sector, improving their livelihoods and increasing their ability to adapt to future challenges, adding that the new International Fund for Agricultural Development (IFAD) private sector strategy The funding model of the Private Sector Finance Program (PSFP) are initiatives that are aligned with our goals. By enabling, catalyzing and pooling private sector investments and partnerships, IFAD works to channel private investments to achieve profitable financial returns with positive social and environmental impacts.
