The Central Bank of Egypt (CBE) has approved an additional EGP 1bn to finance the national veal production project, according to Alaa Farouk, Chairperson of the Agricultural Bank of Egypt (ABE).
The additional financing comes within the CBE’s initiative to support and finance individuals and small projects with a 5% annual declining interest. As a result, it brings the size of the loan portfolio that the ABE will grant to the beneficiaries of the project up to EGP 3bn.
Farouk said that increasing the size of the lending portfolio for the project will provide additional financing for about 7,000 customers to buy and feed about 68,000 livestock.
He pointed out that the bank is currently providing financing of about EGP 2bn to about 11,500 breeders with a total of about 170,000 head of livestock.
Farouk highlighted the project’s importance in reducing the gap between the volume of imports and the consumption of red meat.
The project implements President Abdel Fattah Al-Sisi’s directives on the need to achieve self-sufficiency in animal production and reduce red meat prices to meet the needs of citizens.
Farouk pointed out that the national veal project is an important national project that has been implemented by the state to support small farmers and livestock producers. It aims to motivate them to expand their activities, with Farouk stressing that the project has achieved great success since its launch.
This includes increasing the production of red meat and its products, and stabilising their prices in the market.
He explained that the ABE provides the necessary financing for the national project to revive veal in cooperation with the Ministry of Agriculture and Land Reclamation. This takes place through soft loans at a reduced annual interest of 5%, in accordance with the initiative of the Central Bank of Egypt to support small and medium enterprises.
He added that the bank gives the beneficiaries a purchase loan at a financing rate of up to 75% of the price of one head, to a maximum of EGP 10,000. This includes the financing for feed, and serums to a maximum of EGP 5,000 per head, provided that the loan is repaid at the end of the production cycle to achieve the maximum benefit for the breeders.
Farouk expressed his appreciation for the role played by the Ministry of Agriculture and Land Reclamation in intensifying field follow-ups for the beneficiaries of the project.
He noted that the ministry also provides veterinary care and guidance, studying any problems facing the beneficiaries on the ground and working to overcome them first-hand, which contributed to the success of the project to achieve the desired goals.