The Central Bank of Egypt (CBE) has approved an additional EGP 1 billion to finance the national veal production project, according to Alaa Farouk, president of the Agricultural Bank of Egypt (ABE).
The additional funding is part of the CBE initiative to support and finance individuals and small projects with an annual declining interest of 5%. As a result, it increases the size of the loan portfolio that EBA will provide to project beneficiaries to EGP 3 billion.
Farouk said increasing the size of the loan portfolio for the project will provide additional funding for around 7,000 clients to buy and feed around 68,000 animals.
He pointed out that the bank is currently providing funding of around EGP 2 billion to around 11,500 pastoralists with a total of around 170,000 head of cattle.
Farouk stressed the importance of the project to reduce the gap between the volume of imports and consumption of red meat.
The project implements the directives of President Abdel Fattah Al-Sisi on the need to achieve self-sufficiency in animal production and reduce the prices of red meat 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 ranchers. It aims to motivate them to expand their activities, Farouk stressing that the project has been very successful since its launch.
This includes increasing the production of red meat and its products and stabilizing their prices in the market.
He explained that the ABE is providing the necessary funding for the national veal revitalization project in cooperation with the Ministry of Agriculture and Land Reclamation. This is done through concessional loans at a reduced annual interest rate of 5%, in line with the initiative of the Central Bank of Egypt to support small and medium enterprises.
He added that the bank provides beneficiaries with a purchase loan at a financing rate of up to 75% of the price of a head, up to a maximum of EGP 10,000. This includes funding for feed and serum up to a maximum of EGP 5,000 per head, provided the loan is repaid at the end of the production cycle to achieve maximum benefit for the breeders.
Farouk expressed his gratitude for the role played by the Ministry of Agriculture and Land Reclamation in intensifying field monitoring for project beneficiaries.
He noted that the ministry also provides veterinary care and advice, studies the issues faced by beneficiaries in the field and strives to overcome them firsthand, which has contributed to the success of the project in achieving the desired goals. .