EGYPT – In the build-up to COP27, the Government of Egypt has launched the “Nexus of Water, Food and Energy (NWFE)”, an innovative and ambitious programme, comprising 9 projects with a total cost of US$14.7 billion.
To ensure its success, the state has chosen three lead agencies: the African Development Bank (AfDB) for the Water pillar, IFAD for Food and Agriculture, and the European Bank for Reconstruction and Development (EBRD) for Energy.
The NWFE is part of Egypt’s bold move to launch its first National Climate Change Strategy 2050, a transformational strategy that moves from a narrow sectoral approach to a more focused and structured model of linkages between sectors.
Under the food pillar it comprises of 5 projects with a combined total of US$ 3.35 billion for phase 1 (2023-2030).
IFAD is expected to lead the coordination of developing Egypt’s strategic vision for the agricultural sector, and support the government in the mobilization of financial and technical resources for the five projects under the food pillar.
Dina Saleh, IFAD Regional Director for Near East North Africa, Europe and Central Asia said, “This is a strong signal of trust and recognition of IFAD’s leadership in the sector.
“This also reflects IFAD’s long-standing partnership with the Government of Egypt not just as a key development partner but also as an assembler of finance bringing together partners and as the main financier for the agriculture sector.”
To date, IFAD has managed to leverage approximately US$2 billion for the food pillar of NWFE with a coalition of partners including Asian Infrastructure Investment Bank, African Development Bank, Islamic Development Bank, French Development Agency European Bank for Reconstruction and Development, European Investment Bank, EU, International Finance Corporation and World Bank.
The indicative pledges exceed more than 50% of the estimated budget for the total food pillars.
“This programme will change the lives of many smallholder farmers and transform the agricultural sector itself. This COP is about action, about adaptation,” said Alvaro Lario, the President of IFAD.
“Millions of smallholders are suffering the impacts of the shocks we are seeing. This programme gives them hope and shows how we can bring together action for climate, food, food systems and food security.”
During the signing ceremony, His Excellency Prime Minister Mostafa Madbouly said, “Our commitments towards climate action this year in COP27 come under the theme “Together for Action”.
“All developing countries view this summit as a true test of credibility in implementing our commitments to climate action that have already been made and repeated over the past five years.”
IFAD has been working in Egypt for more than 40 years. It has financed 14 projects with a total cost of US$ 1.1 billion (about 50% of which represents IFAD funding), making it the main financer of the agriculture sector in Egypt according to Ministry of International Cooperation (MoIC) reports.
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