Egypt and the World Bank are discussing launching a $500 million food security deal to help the country weather the consequences of Russia’s invasion of Ukraine.
Russia and Ukraine are the world’s largest wheat exporters, and the war has caused prices to skyrocket, especially in the MENA region.
according to ReutersEgypt ordered 5 cargoes of wheat at $346 to $360 per tonne in December. It climbed to $494.25 per ton in April.
Egypt is the world’s largest wheat importer, with 80% of its supply coming from Russia and Ukraine.
World Bank representatives and ministers discussed enhancing Egypt’s food security and further stepping up its fight against climate change, according to state-run Al-Ahram.
In June, the World Bank Board of Directors approved a $500 million loan to boost Egypt’s efforts to provide bread to poor families and help reform its food security policies.
A month after the Russian invasion, as wheat prices soared worldwide and bread prices rose by up to a quarter, Egypt pegged the price of unsubsidized bread.
The government had planned to cut bread subsidies at the end of March ahead of further difficulties caused by the war between Russia and Ukraine.
One in three Egyptians lives below the poverty line and has been hit hard in recent years, first by the global coronavirus pandemic and now by war. Experts predict it will get worse.
Corruption has also played a major role in Egypt’s economic decline, with money being poured into vanity projects like the new capital instead of the social welfare system.
Debt-to-GDP ratio of 93.8%according to Egypt’s former investment minister, 54% of the state budget is spent on repaying loans and interest.
https://www.middleeastmonitor.com/20220808-egypt-and-world-bank-discuss-activating-500m-food-security-agreement/ Egypt, World Bank Discuss Triggering $500 Million Food Security Deal – Middle East Monitor