The Agricultural Bank of Egypt (ABE) has signed a cooperation protocol with El Ammar Company for Livestock Development to provide subsidised financing to small-scale breeders and farmers for the purchase and rearing of genetically improved, high-yield livestock. The initiative is part of the state's broader strategy to develop livestock production, in line with President Abdel Fattah El-Sisi's directives to enhance meat and dairy output, close the food gap, and improve rural livelihoods. Under the agreement, ABE will offer loans at a reduced interest rate of 5%, specifically targeting small breeders and farmers in rural areas. The loans are intended to support the purchase of high-productivity cattle breeds that offer better returns in meat and milk production, contributing to national food security and economic empowerment in the agricultural sector. The agreement was signed by Ihab Mounir, Head of Business Development at ABE, and Mahmoud Magdy, Chairperson of El Ammar Company, in the presence of Sami Abdel Sadek, Acting Chairperson of ABE, and Magdy Abdel Azim, CEO of El Ammar Company, along with senior officials from both organisations. Under the protocol, ABE will provide accessible financing for the acquisition and feeding of local milking cows and buffaloes. Loans will be repaid through monthly instalments of no more than EGP 1,000 over a five-year term, with the remaining balance paid through annual instalments. A 12-month grace period will be granted at the beginning of the loan to reduce the financial burden on borrowers. El Ammar Company will supply 100 to 150 heads of cattle monthly and provide technical and veterinary support throughout the loan period. Sami Abdel Sadek described the partnership as a model for future collaborations with livestock suppliers and development firms across Egypt's governorates. He stressed that these efforts align with the state's objective to expand the use of genetically enhanced livestock known for their high milk yields—helping to uplift rural living standards and empower small farmers economically. He emphasised that livestock remains a primary source of income in many rural communities.
The ABE acting chairperson noted that the bank has adopted a new livestock financing model that links lending directly to production. This shift involves moving from cash loans to in-kind financing through approved suppliers, ensuring that funds are directed towards their intended agricultural purposes. He highlighted several unprecedented facilitations, including the subsidised 5% interest rate, low monthly instalments, long repayment terms, and the one-year grace period—all designed to support breeders, expand the national livestock herd, reduce the food gap, and advance self-sufficiency in meat and dairy production. Magdy Abdel Azim praised ABE's supportive role and favourable loan terms, affirming El Ammar Company's commitment to providing technical support for the initiative across Egypt's governorates. In a related development, ABE hosted François Sergio, Minister of Agriculture and Livestock of Madagascar, and his accompanying delegation during an official visit to Egypt. The visit aimed to strengthen bilateral cooperation and explore ABE's experience in agricultural financing and support for small-scale farmers. Minister Sergio was briefed on the results of ABE's comprehensive development strategy, which has positioned the bank as a key institution in financing agricultural projects and associated services and industries. The delegation also toured several departments of the bank, including the newly inaugurated Data Centre, a cornerstone of ABE's plan to modernise its infrastructure and align with global banking standards. Minister Sergio expressed his appreciation for ABE's role in advancing agricultural development and affirmed that the visit would help transfer elements of the bank's successful model to Madagascar's financial system. He noted the potential for ABE's approach to support smallholder farmers in Madagascar, where 80% of the population depends on agriculture as a primary income source. Sami Abdel Sadek underscored ABE's developmental mission in supporting Egypt's national economy and advancing sustainable agricultural development in partnership with the Ministry of Agriculture and Land Reclamation. He welcomed cooperation with Madagascar and the opportunity to share ABE's expertise, consistent with Egypt's broader strategy to strengthen development partnerships across the African continent.
