The Agricultural Bank of Egypt (ABE) has commenced a restructure plan to develop the Egyptian Company for Agricultural and Rural Development has commenced, the bank’s chairperson Alaa Farouk revealed.
The comprehensive plan aims to enhance the company’s capabilities in providing all aspects of assistance to farmers, producers, and the agricultural sector in general.
This will come in addition to its other services, designed to achieve development efforts throughout Egypt’s countryside, according to Farouk.
Farouk said that a new Board of Directors will be formed at the company, which will undertake the company’s reactivation.
He noted that a the company will launch a pioneering project to establish two main centres, which will provide all the company’s services in the governorates of Minya and Beheira.
The two centres will include two ABE branches, which will provide banking and financing services, as well as all aspects of support and financing for small farmers who are also the company’s clients. These services will also be provided to residents of the two governorates.
Farouk said that the restructuring and development of the Egyptian Company for Agricultural and Rural Development comes in support of farmers and agricultural project owners.
It aims to provide production requirements of subsidised and unsubsidised seeds, pesticides, fertilisers, and other production inputs. This is in addition to providing agricultural mechanisation and opening marketing outlets for agricultural products throughout Egypt.
Farouk emphasised that the company’s development is one of the routes of the ABE’s comprehensive development plan.
These harnessed the bank’s capabilities at all levels, whether at the level of improving the quality of banking services, or through a diversification of products and the development of new products.
The plan aims to enhance the ABE’s national role as an institution specialised in advanced development, to contribute to rural development and financing agriculture and its related sectors.
It also means the bank could provide banking and financial services related to initiatives to support farmers and providing financing programmes.
Farouk said that the Egyptian Company for Agricultural and Rural Development will have a major role during the coming period, especially with regard to supporting contract farming.
This will improve the level of income for farmers and increase their profitability through enhancing financing and support for all elements of the value chains for agricultural crops, animal, fish, and poultry production.
This is due to the company’s role in contracting between the farmer and the factory, in addition to its developmental role, by entering into partnerships with investors to stimulate investment in the fields of agricultural and animal industries.