Mohamed Abul Soud, CEO of the Agricultural Bank of Egypt (ABE), announced that the bank is preparing to launch a comprehensive package of new financing and banking services designed specifically to support small-scale farmers and stimulate investment across Egypt’s agricultural sector. The upcoming products, which will be offered through simplified and streamlined procedures, aim to enhance farmers’ access to credit in line with the directives of the political leadership and the state’s broader agenda to strengthen agriculture’s contribution to the national economy.
Abul Soud emphasised that these initiatives reinforce ABE’s national role in supporting small farmers and advancing inclusive agricultural development. The forthcoming services will help raise productivity and improve living standards by providing financing for agricultural mechanisation and equipment, seedling and high-yield seed production in cooperation with the Ministry of Agriculture, and encouraging the adoption of modern and innovative farming practices.
The bank also plans to scale up financing for modern irrigation systems and solar energy projects as part of efforts to cut production costs and improve crop quality. Additionally, ABE is preparing to expand support for contract farming programmes and assist farmers in exporting their produce through specialised export platforms, helping open new markets for strategic Egyptian crops.
According to Abul Soud, ABE’s current strategy positions the bank as the main financing arm of Egypt’s agricultural sector. This includes expanding access to credit for all forms of agricultural and livestock production. He highlighted the bank’s strong focus on crop production loans, commonly known as “agricultural advances,” which are disbursed in collaboration with the Ministry of Agriculture to help farmers manage rising input and production costs.
Crop production loans currently account for 40% of ABE’s total credit portfolio, growing by approximately 15% annually. This portfolio includes around EGP 36bn in agricultural loans benefiting nearly 300,000 farmers. Meanwhile, livestock production financing represents 15% of the bank’s credit portfolio, allocated under regulatory frameworks aimed at increasing the sector’s overall output.
Abul Soud reiterated the bank’s commitment to expanding contract farming schemes, which aim to empower small farmers by helping them cover production costs, cultivate high-quality crops and market their produce directly at competitive prices while eliminating intermediaries. ABE is also pushing to expand cultivation of key strategic crops for both domestic and export markets, such as sugarcane in Upper Egypt, through tripartite contracts between the bank, farmers and sugar factories. Financing for sugarcane production has reached EGP 4bn, including EGP 2bn disbursed in the past two months alone.
The bank noted that agricultural advances are offered at a preferential interest rate of 5% and are accessible through the “Meeza Farmer Card,” which is linked to landholding certificates. The value of each loan is determined according to crop-specific financing categories set jointly by ABE and the Ministry of Agriculture based on updated production costs. Farmers repay their loans after harvest and sale of their produce, with ABE facilitating the process through digital applications and a nationwide branch network to ensure quick and convenient access to funding.
These plant production loans are designed to help farmers cope with rising input and operational costs, particularly those driven by global increases in agricultural commodity and production material prices. For many small-scale farmers, these loans serve as a vital financial lifeline, supporting their continued participation in productive activity, enhancing their livelihoods and contributing to the long-term growth of Egypt’s agricultural sector.
