As part of the IFPRI Egypt Seminar in partnership with the American University in Cairo: “Climate-Smart Agriculture Solutions for Egypt”

1. Climate-Smart Agriculture Solutions for Egypt
What IFAD can do… and can’t do!
IFPRI-CARES-AUC Seminar April 18th 2019, Cairo

2. IFAD in Egypt
 $842 M for 13 projects since 1980
 Geographic focus for new projects:
Upper Egypt, Marsa Matrouh
Poverty justifies continued support:
 17% (2000) => 28% (2016)
Source: World Bank

3. Increase in temperature
Nile River => Increase in flow
variability from year to year
Sources: MIT, 3rd Natl Communication to UNFCCC
Rise in sea level
Source: Regioclim
Source: Elsharkawy 2009
Challenges imposed by climate change - causes

4. By 2040:
• Wheat production: -12%
• Maize production: -47%
• Rice production: -26% to -47%
• Vegetables: -28%
Egyptian Environmental Affairs Agency. Cairo, 2016
Challenges imposed by climate change -
consequences
Increased
evapo-
transpiration
Prolonged
heat waves
Increased
water
demand
More
torrential
events
Loss of soil
fertility
Production
losses

5. New IFAD investment in support of Climate-
Smart Agriculture in Upper Egypt
• Two Governorates in Upper Egypt (Minya a/o Asyut a/o Sohag)
 Poverty reaches levels up to 56% (rural Upper Egypt)
• Focus on old lands
 Achievable productivity gains
 Limited but renewable water resource
 63% of land is owned by smallholder farmers
• Targets:
 50,000 rural households
 50% of households reporting increased income
 50% of households reporting increases water-use efficiency
 25,000 ha with climate-resilient water supply

6. New IFAD investment in support of Climate-
Smart Agriculture
• IFAD and the Government will support climate-sensitive and
market-driven “Farmland use and investment plans” (FLIP)
 technology requirements for climate-smart agriculture;
 capacity building needs;
 marketing arrangements;
 economic analysis; and
 estimated investments needed.
• Total IFAD contribution: USD 66 million

7. New IFAD investment in support of Climate-
Smart Agriculture
• The FLIPs will open the door to grant or highly concessional financing for:
 on-farm irrigation equipment to improve water-use efficiency;
 water delivery and drainage facilities;
 greenhouses;
 protective fencing of farmland;
 shelterbelts and sand dune fixation;
 nutrition-sensitive farming practices; and
 investments in social infrastructure

8. The big picture: some limitations
• Problem of resources:
 IFAD funding can only cover two Governorates at scale
• Problem of incentives:
 Water is scarce and precious => free to the farmer
 Fossil fuels are precious and polluting => subsidized
• Acquired rights and entitlements
• Concern for stability of food prices (“bread riots”)
• Weak social safety nets
• It’s complicated!

9. An even bigger picture… looking beyond
Climate-Smart Agriculture
Productivity gains: reducing trend International commodity markets
Environmental change Transformed convenience products
Mechanization and migration Increasing demand for meat and dairy
Only one earth Need 5-6 more planets
Climate-smart agriculture Sustainable diets

10. Thank you!