On 01/01/1977 , International Fund for Agricultural Development (IFAD) has started to cooperate with Egypt.
• The International Fund for Agricultural Development (IFAD) was established in 1977 for financing agricultural and rural development projects all over the world with a view to fighting hunger, malnutrition and poverty in rural areas by providing financial resources to IFAD member states on conditions dependent on the economic circumstances of each state.
• IFAD has 161 member states divided into three categories, the first comprises 22 countries, which are member states of the Organization of Economic Cooperation and Development (OECD), the second comprises 12 countries which are member states of the Organization of Petroleum Exporting Countries (OPEC) and the third comprises 127 developing countries, including Egypt, which are the main beneficiaries of the Fund.
• IFAD provides the following three types of loans to beneficiaries (on basis of annual incomes):
- Loans without interest (only service fees at the rate of 0.75% for low income countries).
- Loans with normal (commercial) interest rates for high income countries.
- Loans with low interest rates equivalent to half the normal interest rates to middle income countries, such as Egypt.
• Egypt is considered the first and greatest beneficiary of financial assistance from IFAD in the Middle & Near East and North Africa. IFAD set a cooperation strategy with Egypt since its very establishment in 1977 to support the Egyptian agricultural development plan, in compliance with the state economic and social development plan. Egypt’s share in funds granted to the Fund is determined every three years according to IFAD regulations. IFAD’s activities in Egypt started in 1980 when it financed 11 agricultural projects. Since that date, Egypt has obtained loans from IFAD worth approximately USD 300 million.
The current cooperation portfolio is worth USD 207.6m through loans financing five projects.
- Normal conditions (conditions according to which the loan is provided to the Egyptian government – they include an interest rate equivalent to the benchmark rate, currently 1.16% , a 3 year grace period and a completion period ranging from 15-18 years)
- Second: Grants
Latest aspects of cooperation :
Preparations are underway for signing a grant worth USD7m from the Global Environment Facility (GEF) through IFAD to help small farmers adapt to climatic changes.