Agricultural Bank of Egypt strengthens its investment support in 2023

The Agricultural Bank of Egypt has been able to strengthen granting loans for projects of all kinds, whether large, medium or even micro, especially the agricultural sector in all its productive areas to achieve agricultural and rural development. This is part of the Bank's ongoing work to encourage investment in this sector and related activities.

The Bank's loan portfolio rose to EGP 78.826 bn by the end of 2023, compared to EGP 63.97 bn by the end of December 2022, with a growth rate of 23%, making the number of customers benefiting from these loans reach 543.177, confirming the success of the Bank's strategy and following serious credit policies to link loans to production, enabling the Bank to exercise its important developmental role in granting loans to agricultural projects and related industrial activities.

The loan portfolio directed to SMEs accounted for 64% of the loan portfolio, given the importance of this vital sector in supporting the national economy and providing employment, especially in the agricultural sector and related activities

Micro-sized corporates received loans of EGP 35.796 bn in 2023, bringing the number of Micro-sized corporates financed by the bank to approximately 438.943 for individuals and corporates with a growth of 9%.

As for the number of small-sized corporates beneficiaries, it rose by 11% to reach 6.614corporates, with a financing value of EGP 6.497 bn, while the number of financed medium-sized corporates increased from 98 companies to 118 companies to get financing worth EGP 4.989 bn and jump by 50%.

The number of major corporates, financed by the Bank, increased from 119 corporates with loans volume of EGP 10.563 bn on December 31, 2022 to 166 companies with loans volume of EGP 16.698 bn on December 31, 2023, a growth of 58%.

Loans directed to support and finance the agricultural sector and related industries accounted for about 80% of the size of the credit portfolio, with the bank doubling in 2023 the amount of loans for agricultural crop production, which smallholder farmers receive at 5% return.

The size of the Agricultural Crop Loan Finance portfolio increased at a growth rate of 123%, registering EGP 23.629 bn by the end of 2023, compared to EGP 10.5 bn by the end of 2022.

Contract farming received a significant share in the Bank's policies and action plans, which contributed to increasing the volume of loans directed to Contract farming to more than EGP 2.2 bn, benefiting more than 5000 farms to grow 14 thousand acres, and EGP 49 mn to finance Contract farming.

It should be noted that, the Bank has adjusted agricultural crop loans categories more than once in less than a year by 25 to 70% to help farmers afford the high cost of production supplies.