As part of the IFPRI Egypt Seminar in partnership with the World Bank, IFPRI Egyprt seminar “Innovations for Agricultural Development in Egypt”.

1. The CBE’s Vision & Strategy
Towards the Agriculture Sector
June 2019

2. 01
The Central Bank of Egypt’s Strategic
Objectives
The main
objectives of
supporting
MSMEs
Inflation targeting
Reducing trade balance and
demand for foreign currency
Encouraging investment
Increase employment
through promoting
entrepreneurship and
financial inclusion
Increase employment through
increasing the number of start-
ups
Import Substitution
Increase the volume of exports
Automation and technology
Enhancing creativity and
innovation

3. 02
The active role of the CBE in agriculture
sector development
The CBE’s SME Initiatives
In January 2016 all banks
operating in Egypt’s Banking
Sector were obligated to delegate
20% of their total credit portfolio
towards SMEs within a 4 year
period at subsidised interest rates
Small Enterprises for all
sectors
Equipment & Machinery
Working Capital (Reached its limit)
Several exceptions were made to the agriculture sector only
 Decreasing min. sales turnover threshold for the 5%
initiative from EGP 1 mn to 250K only for agri.
 Allowing The Agriculture Bank of Egypt (ABE) to
finance agriculture cooperatives
 Allowing all banks to finance agriculture cooperatives
for switching to modern irrigation methods
 Allowing The Industrial Bank of Egypt (IDB) to
finance exchange commodities – Fruits and Vegetables
Collection Centers
Outcome
Action Plan
Agriculture is the least impacted sector by the CBE’s SMEs initiatives contributing to only 5.5%
of the EGP 137.7 bn total availed funds (as of March 2019). That said, the sector remains greatly
underfunded due to major deficiencies in the market that hinders accessing the availed finance.
CBE aims at unlocking the agriculture sector’s potential by overcoming a number of the sector’s
challenges – financial and non-financial – at different stages of the agriculture value chain through
setting out a series of agriculture focused projects/initiatives.

4. 03
The CBE’s current and future agriculture
projects/initiatives
1. Improving Access to
Finance
ABE Transformation
Credit Guarantees
Targeted
Interventions
2. Supporting the
Agriculture MSMEs
Business Environment
Agriculture & Rural Development
Companies – Developing sustainable and
profitable anchor leading companies
Council of Ministers Committee for SMEs
– Consolidating local efforts
Fruits and Vegetables Collection Centers –
Strengthening Value Chains
SASME Project – Education
Value Chain Development Excellence
Center – NilePreneurs Initiative
3. Capitalizing on
Technology and Innovation
Agri Platform
Agricultural
Investment Map
Fertilizers/Seeds and
Soil Matching Map
New Specialized
Cooperatives/Virtual
Coops.
Agri Labs
* Current projects
* Future Projects

5. 04
1. Improving Access to Finance
Agriculture Bank of Egypt (ABE)
Transformation
Targeted Interventions Credit Guarantees
 Structural improvement in
access to finance in the
agriculture sector
• Transform ABE from being the
village bank into a full service
Rural Development Bank (Rural
Bank).
 Quick win initiatives
• Banks’ contribution to the agriculture sector
is minimal (as explained in slide 2).
Therefore, CBE could launch targeted
incentivized funding specifically to the
agriculture sector to help enhance the local
banks’ input towards this sector.
• In addition, targeted interventions could be
made to fund specific identified gaps in the
agricultural value chains. CBE is currently
working on consolidating the local and
international efforts done on various value
chains in Egypt – including the World Bank’s
study about Value chain mapping of some
commodities (oranges, dates, onions, and
garlic) to preliminary identify the highest
potential value chains and greatest funding
gaps.
• CBE-CGC EGP 2 bn trust fund
for MSMEs
Outstanding Guarantee:
EGP 12.8 bn – 27% to the
agri sector.
• CGC & Ministry of
Agriculture EUR 9 mn grant
from the EU for SMEs in Agri
sector.
Outstanding Guarantee:
EGP 400 mn

6. 05
2. Supporting the Agriculture MSMEs
Business Environment
Agriculture & Rural Development
Companies
– Developing sustainable and
profitable anchor leading companies
Council of Ministers Committee for
SMEs
– Consolidating local efforts
Fruits and Vegetables Collection
Centers
– Strengthening Value Chains
• Developing sustainable and
profitable anchor leading
companies in the agricultural
sector that provides value added
solutions to all segments of the
local and global markets.
• This will help support the
formalization of trade activities to
the best interest of the farmers
according to the international best
practices through filling sector
gaps, complementing local and
international efforts, and leading
the sector.
• According to the Prime Minister's
Decision No. 2017/1840, a
committee headed by CBE was
formed to develop
recommendations that aims at
supporting SMEs.
• Combine the efforts of local
government entities
• A proposal that maps the main
aspects of the agriculture export
cycle and that identifies the main
obstacles, proposed solutions and
implementation entities was
prepared.
• The Industrial Development Bank
has financed the first center for
the collection of fruits and
vegetables in Egypt and the Middle
East in Beheira.
• The bank signed a protocol to
establish 8 centers in other
governorates.
• The aim of these centers is to:
- Cut out the middlemen
- Control prices and prevent
monopolistic practices
- Reduce agriculture produce
losses

7. 06
2. Supporting the Agriculture MSMEs
Business Environment cont.
SASME Project
– Education
Value Chain Development Excellence Center
– NilePreneurs (NP) Initiative
• SASME project is a cooperation agreement between the
Egyptian Banking Institute (EBI) and AFD was signed to
grant EUR 1.8 bn to support SMEs in the agriculture
sector through:
- Training programs for bankers, CGC, and NGOs
- Technical assitance in product development, credit
rating, risk management, credit risk guarantee programs
• NP is a national initiative, sponsored and financed by the
CBE and implemented by Nile University, which seeks to
support entrepreneurship, small enterprises, innovation
and the enhancement of local production.
• Current Agri-focused project in NilePreneurs is The
Value Chain Development Excellence Center that help
finance provide TA to SMEs along agri value chains

8. 07
3. Capitalizing on Technology and
Innovation
Agriculture Platform
• Project Objective: CBE aims at addressing the current sector deficiencies by capitalizing on digitization through building
an Agriculture Market place platform that will digitalize key payment inflows and outflows for farmers and MSMEs ,
farmer transaction histories, bringing to bear the much needed efficiency, cost savings, and data collection to the
agriculture value chain.
• Cooperation with ABE and Mastercard
• An independent company will be founded to own and operate the platform.
• Current Status: The Strawberry and Livestock value chains are currently being thoroughly studied to help develop the
platform. The preliminary expected pilot phase launch date is September 2019.
Source: Mastercard

9. 08
3. Capitalizing on Technology and
Innovation cont.
Agriculture Investment Map
Fertilizers/Seeds and Soil
Matching Map
New Specialized
Cooperatives/Virtual Coops
Agri Labs
• An indicative guiding
document for
investment in the
agriculture sector
showing all available
resources ( Natural-
Human – Infrastructure)
at a governorate level.
• Designing a map for
matching different types
of soils with the
complementary
fertilizers and seeds to
optimize productivity.
• New Product-Specific
Cooperatives based on
the market gaps can be
formed to overcome the
Structural and
Governance related
challenges of the current
ones.
• Virtual Cooperatives can
act as small market-
oriented enterprises
and can be incorporated
on the Agri Platform.
• Replicating the
NilePreneurs initiative
through establishing Agri
Labs in universities in
cooperation with
governmental entities.

10. 09
Support Needed to Implement the
CBE’s agriculture projects/initiatives
International Expertise
Finance for targeted
interventions
Technical Assistance
R&D