The OPEC Fund has committed $10 million to a $200 million credit line for Egypt for the import of vital food and agricultural products.
“Egypt is the world’s largest importer of wheat and relies heavily on global trade in essential commodities such as cereals, vegetable oil and animal protein to meet domestic demand,” the development lender noted in a recent press release which announced the contribution for the syndicated facility led by the International Islamic Trade Finance Corp. “Following the global repercussions of the war in Ukraine and rising commodity and food prices, Egypt has prioritized securing grain supplies and ensuring food security.”
The North African country relied on Russia and Ukraine for more than 70 percent of its wheat imports in 2021, the year before Russia invaded Ukraine, according to data from the United Nations Agriculture and Food in a document published on June 10, 2022.
Amid the war, Ukraine’s grain exports depend on an agreement brokered by the United Nations and Turkey between the warring parties to allow the safe shipment of Ukrainian food and fertilizer to reach world markets. But Russia has suspended its participation in the Black Sea Grain Initiative since July 17, demanding the lifting of sanctions on Russian companies engaged in agricultural trade, it said in a statement on September 6 Russian Ministry of Foreign Affairs.
The OPEC Fund’s announcement said: “Egypt has responded to food security challenges with a comprehensive food security strategy, combining domestic production support with import diversification and improved agricultural practices sustainable”.
“The OPEC Fund’s contribution to the trade finance mechanism will support Egypt’s strategy to ensure food security and aligns with Sustainable Development Goal 2 – Zero Hunger, as well as the Plan of $1 billion OPEC Fund Food Security Action,” the press release added. .
OPEC Fund Director General Abdulhamid Alkhalifa said in a statement: “The participation of the OPEC Fund in this vital trade finance mechanism underscores our commitment to help solve food security challenges.” .
Earlier, the OPEC Fund announced a $500,000 grant for Morocco for immediate and medium-term humanitarian efforts in the earthquake-ravaged country. A magnitude 6.8 earthquake struck the North African nation on September 8, according to the US Geological Survey.
Nearly 3,000 people have been confirmed dead and 5,500 others have been injured, according to the latest figures from the United Nations Office for the Coordination of Humanitarian Affairs updated on Friday. More than 380,000 people have been affected, according to the bureau, calling it Morocco’s worst earthquake since 1960.
“The OPEC Fund’s emergency assistance will address critical needs, including the provision of food, clean water and shelter, as well as protection and prevention measures as part of the global relief operation,” he said. said the OPEC Fund in a press release on September 15. The subsidy is intended to serve the most vulnerable segments of the population such as families, children, people with disabilities and the elderly.”
The grant was to be channeled through the International Federation of Red Cross and Red Crescent Societies, the OPEC Fund said.
The OPEC Fund, founded in 1976 by members of the Organization of the Petroleum Exporting Countries (OPEC), operates on voluntary capital contributions from members.
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