A joint development project in Aswan has expanded into a second phase with EGP 120m in funding to integrate smallholder farmers into Egypt’s formal financial system, the Central Bank of Egypt (CBE) and the Ministry of Agriculture and Land Reclamation announced on Sunday.
The “Transforming the Livelihoods of Smallholder Farmers” project, a collaboration between the CBE, the banking sector, the Ministry of Agriculture, and the UN’s World Food Programme (WFP), aims to improve economic livelihoods through modern irrigation and financial literacy. The second phase, which began in January 2025 and runs through December 2026, targets 11 new villages following a first phase that the CBE says increased farmer revenues by 35%.
CBE Governor Hassan Abdalla and Minister of Agriculture Alaa Farouk conducted a field visit to Aswan villages, including Armana and Eniba, to review solar-powered irrigation stations and sugarcane seedling cultivation. Abdalla stated that the project aligns with the State’s strategy to support smallholder farmers and integrate them into the formal financial sector, while noting the initiative focuses on economic empowerment for women and rural communities facing climate challenges.
Data from the project’s first phase, which ran from January 2021 to June 2022, showed that 85,000 smallholder farmers benefited from the consolidation and development of 8,500 feddans. The introduction of modern techniques led to a 34% rise in crop production and a 37.5% reduction in operational costs, according to official figures provided during the visit.
Minister Alaa Farouk described smallholder farmers as the cornerstone of food security and a key pillar of the national prospect for the agricultural sector. He explained that the ministry provides technical and technological support, including modern advisory services and access to improved seeds, while the Executive Agency for the Comprehensive Development Projects (EACDP) acts as the executive arm to ensure support reaches intended beneficiaries. Farouk stressed that the financing offered by the banking sector is a vital source that sustains farmers and enables the purchase of production inputs.
WFP Country Director and Egypt Representative Rawad Halabi emphasised that the project marks a unique direct collaboration model under the auspices of the CBE. She pointed out that the model offers innovative tools through blended finance mechanisms and catalytic capital aimed at economically empowering farmers in line with Egypt’s Vision 2030.
The first phase supported the capacity building of 50 social and civil organisations and provided training for 2,250 candidates, where women accounted for 31% of participants. Financial literacy seminars reached 34,000 beneficiaries, and the project funded approximately 15,000 women to establish livestock projects, yielding a net income of up to 55%.
Participating banks also extended financial services such as the issuance of “Meeza” prepaid cards and mobile wallets, directing customers to Business Development Services Hubs affiliated with the “Nilepreneurs” Initiative. In 2025, the initiative supported approximately 23,500 beneficiaries and installed 21 solar power stations with a total capacity of nearly 1,000 kilowatts. This current phase has expanded to include the cultivation of strategic crops, sugarcane, and export-oriented cash crops such as cantaloupe. The visit concluded with a review of vocational training for women in upcycling palm waste and agri-processing, attended by Aswan Governor Ismail Kamal.
