The Agricultural Bank of Egypt (ABE) injected EGP 300m into the National Project for Fattening Veal Revival within the last seven months, according to Elsayed Elkosayer, chairperson of the ABE.
The ABE launched the project in July 2017, in cooperation with the Ministries of Finance and Agriculture, through offering EGP 300m in loans.
The project targets young graduates and breeders, with a funding ceiling of EGP 400,000 for young breeders and EGP 2m for companies and associations.
Elkosayer told Daily News Egypt that the revival of the project after several years of cessation comes in line with the political leadership’s directives and the Central Bank of Egypt (CBE)’s initiative to develop livestock and balance veal prices in the market.
He added that the EGP 300m in loans represent the first and second tranches of the funding, while the third tranche will be up to EGP 200m, which will be offered within the coming period.
The ABE obtained the CBE’s approval to allocate EGP 200m for the project in December 2017. This funding will be deducted from the bank’s small and medium enterprises portfolio.
According to Elkosayer, the ABE offered loans to 2,158 customers to feed and fatten 22,400 cattle nationwide, and it intends to inject a further EGP 200m into the project soon.
In February 2018, the ABE signed a cooperation protocol with the Ministry of Agriculture and the National Service Projects Organisation to support the country’s plan to develop livestock and increase veal supply at appropriate prices. The protocol, which will come into force soon, stipulates that the ABE will be responsible for providing the necessary funds for importing livestock according to the available funding. The bank will finance the purchase of the livestock with a simple interest rate of 5%.