Egypt, IFAD Sign US$65.3 Million Agricultural Deals to Modernise Irrigation and Build Climate Resilience
Egypt and the International Fund for Agricultural Development (IFAD) have signed two agricultural financing agreements worth a combined US$65.32 million to modernise irrigation infrastructure, improve water management and strengthen the country’s agricultural resilience to climate change.
The agreements will support two initiatives, led by the Climate-Resilient On-Farm Water Management in the Nile Valley (CROWN) project and the Positioning Egypt for Agricultural Resilience and Leadership (PEARL) project.
The largest share of the financing, US$64.85 million, will go towards the CROWN project, which aims to modernise on-farm irrigation and drainage systems, promote climate-smart agricultural practices and improve farmers’ access to markets and financing.
According to IFAD, the project will help farmers use available water resources more efficiently, increase agricultural productivity and improve household incomes. It will also seek to expand opportunities for women and young people through improved access to agricultural services, technology, skills development and employment.
CROWN is expected to benefit approximately 90,000 rural households and improve water management across 30,000 feddans, equivalent to around 12,600 hectares of agricultural land.
The second agreement supports the PEARL project through a US$470,000 grant. The initiative will strengthen agricultural expertise and institutional capacity through specialised training, digital tools and knowledge-sharing exchanges with countries across Africa and the Middle East.
Approximately 2,000 people are expected to benefit from the programme, which is intended to strengthen agricultural knowledge, encourage the adoption of improved farming practices and support regional cooperation.
Water scarcity drives irrigation modernisation
The agreements come as Egypt faces increasing pressure on its limited freshwater resources, making efficient agricultural water management a critical priority for the country’s food production system.
Egypt has approximately 500 cubic metres of available water per person annually, half the internationally recognised water scarcity threshold of 1,000 cubic metres, according to Water Resources and Irrigation Minister Hany Sweilam.
The Nile accounts for more than 98% of Egypt’s renewable water resources, according to President Abdel Fattah el-Sisi. This dependence leaves the country increasingly exposed to water-related pressures as population growth, urbanisation and rising food demand place additional demands on available supplies.
Against this backdrop, the CROWN project focuses on improving the efficiency of existing agricultural water resources rather than increasing water availability.
Modernised irrigation and drainage infrastructure, combined with climate-smart farming practices, could help farmers reduce water losses, improve crop productivity and strengthen their ability to manage changing climatic conditions.
Improved access to markets and agricultural financing is also expected to help farmers translate productivity gains into better incomes and more sustainable farming operations.
Broader investment in water security and agricultural capacity
Beyond the IFAD-supported initiatives, the Egyptian government is pursuing a wider programme to improve national water management through wastewater recycling, desalination and the adoption of modern water technologies.
The government is also investing in flood protection, measures to combat coastal erosion and initiatives to help communities in the Sinai Peninsula and other parts of the country manage water-related risks.
Alongside infrastructure investment, the PEARL project recognises the importance of developing institutional and human capacity to sustain improvements in agricultural water management.
Through training, digital technologies and knowledge exchange with other African and Middle Eastern countries, the initiative aims to strengthen the expertise needed to support climate-resilient agriculture beyond individual project cycles.
Together, the CROWN and PEARL projects represent an investment in Egypt’s agricultural productivity, water-use efficiency and climate resilience. For farmers, the focus on modern irrigation, improved agricultural practices and stronger institutional support could help address some of the structural challenges facing production in an increasingly water-constrained environment.