The OPEC Fund has committed $10 million to a $200 million credit facility designated for Egypt, aimed at facilitating the import of crucial food and agricultural commodities.
The OPEC Fund has committed $10 million to a $200 million credit facility designated for Egypt, aimed at facilitating the import of crucial food and agricultural commodities.
In a recent press release, the development lender highlighted Egypt’s status as the world’s largest wheat importer, emphasizing its heavy reliance on global trade for essential provisions like grains, vegetable oil, and animal proteins to meet domestic demands. Given the global repercussions of the conflict in Ukraine and the subsequent surge in commodity and food prices, Egypt has taken measures to secure grain supplies and fortify its food security.
Previously, Egypt heavily depended on Russia and Ukraine for over 70 percent of its wheat imports in 2021, according to data from the United Nations Food and Agriculture Organization. However, this reliance was challenged by geopolitical events, particularly Russia’s invasion of Ukraine.
Amidst the ongoing conflict, Ukraine’s grain exports have relied on a UN and Turkey-brokered deal to ensure the safe shipment of Ukrainian foodstuffs and fertilizers to global markets. Nonetheless, Russia’s suspension of its participation in the Black Sea Grain Initiative has added further complexity to the situation, demanding the lifting of sanctions on Russian companies involved in agricultural trade.
The OPEC Fund’s announcement underscores Egypt’s proactive approach to address food security challenges, which combines strategies for domestic production support, diversification of imports, and promotion of sustainable agricultural practices.
Abdulhamid Alkhalifa, the Director-General of the OPEC Fund, stated, “The OPEC Fund’s participation in this vital trade finance facility underscores our commitment to helping solve food security challenges”.
This contribution aligns with Sustainable Development Goal 2 – Zero Hunger and the OPEC Fund’s own US$1 billion Food Security Action Plan, reinforcing Egypt’s efforts to ensure food security.
Earlier, the OPEC Fund also pledged a $500,000 grant to support immediate and medium-term humanitarian relief efforts in Morocco, following a devastating 6.8 magnitude earthquake on September 8. The grant is set to address critical needs, providing food, safe water, shelter, and protection measures for the most vulnerable segments of the population.
Established in 1976, the OPEC Fund relies on voluntary capital contributions from members of the Organization of Petroleum Exporting Countries (OPEC) to fund its operations.