OECD Finds Egypt Supports Farmers More Than South Africa

Egypt’s agricultural producers receive considerably more policy support than their South African counterparts, according to the Organisation for Economic Co-operation and Development’s (OECD) Agricultural Policy Monitoring and Evaluation 2026 report. Producer support averaged 12.6% of gross farm receipts in Egypt between 2023 and 2025, against 3.1% in South Africa.

Egypt entered the OECD’s agricultural monitoring exercise for the first time in 2026. The comparison measures support delivered through agricultural prices and government budget transfers, rather than direct subsidies alone.

Egypt’s agricultural policies include government wheat procurement and fertiliser support, with irrigation remaining a major production requirement.

In South Africa, agricultural research, infrastructure and public services are important areas of government support. The OECD’s findings provide a basis for examining how these policies affect farm costs, food processing and investment in both countries.

Egypt’s Wheat and Fertiliser Policies Shape Farm Costs

Egypt’s government purchases between one-third and half of domestically produced wheat at administered prices, according to the OECD’s Agricultural Policy Monitoring and Evaluation 2026.

Market-price support also benefits producers of poultry, sugar and cotton. Fruit and vegetable growers receive no comparable price support, while livestock producers face higher feed costs.

Fertiliser manufacturers must allocate 55% of their production to the Ministry of Agriculture and Land Reclamation for subsidised distribution.

The programme covers eligible farmers with holdings of up to 25 feddans, or approximately 10.5 hectares, particularly wheat growers. The Agricultural Bank of Egypt also offers agricultural loans at rates of around 5%, compared with market lending rates of approximately 25% in 2025.

In September 2025, Egypt increased the regulated natural gas price for nitrogen fertiliser producers from $4.50 to $5.50 per million British thermal units.

Manufacturers also operate under domestic supply quotas intended to address fertiliser shortages. These requirements affect production costs and the quantities available for commercial sales.

Irrigation accounted for 72% of Egypt’s public expenditure on general agricultural services during 2023–2025, according to the OECD. Expanding cultivation into desert areas requires investment in water treatment, pumping and distribution infrastructure.

The OECD has recommended improvements in water management and irrigation efficiency as Egypt pursues further agricultural expansion.

South Africa’s Farm Productivity Lags as Infrastructure Needs Grow

South Africa’s agricultural productivity increased by an average of 0.1% annually between 2014 and 2023, compared with a global average of 0.8%, according to the OECD’s Agricultural Policy Monitoring and Evaluation 2026. Agricultural output growth relied largely on increased use of production inputs rather than productivity improvements.

Government spending on services supporting agriculture averaged 1% of the sector’s production value during 2023–2025, down from 3.9% in the early 2000s.

These services include research, knowledge transfer, irrigation infrastructure and inspection programmes. Inspection and control accounted for approximately 24.5% of the expenditure measured by the OECD.

Agriculture accounts for about 54% of South Africa’s freshwater withdrawals, although only 1.7% of agricultural land is irrigated. The government began implementing a revised raw-water pricing strategy in 2026, with changes to cost recovery and water management expected to increase charges for commercial agricultural users.

South Africa introduced a ten-year foot-and-mouth disease control strategy in January 2026, targeting vaccination of 80% of the national cattle herd by December.

The programme is intended to contain outbreaks and support the restoration of disease-free status required for access to certain livestock export markets.

The OECD recommends greater investment in rural infrastructure, agricultural research and services that improve market access. It also proposes reviewing the diesel rebate and strengthening access to equipment, training and finance for land-reform beneficiaries. These remain policy recommendations rather than confirmed changes to government spending.

Agribusiness Investors Expand Production in Egypt and South Africa

Egyptian-Emirati joint venture MAFI is preparing to begin production at its agricultural processing complex in Sadat City. The 157,000-square-metre facility contains five factories with 23 processing lines for citrus, tomatoes, fruit concentrates and frozen produce.

Designed to produce more than 100,000 tonnes annually, the export-oriented complex had not confirmed the start of commercial operations in its October 27 update.

Egypt’s Financial Regulatory Authority approved the establishment of Al Ahly Green Agriculture Investment Fund Company in March 2026.

The company is authorised to invest in agricultural businesses through private equity and venture capital. The approval establishes a regulated investment vehicle, although no capital raised or deployed was disclosed.

In South Africa, Dutch development bank FMO committed R500 million to Gledhow Sugar in June under a seven-year financing agreement.

The funds will support the final phase of modernisation at the company’s KwaZulu-Natal sugar mill, which emerged from business rescue in early 2025. The investment is directed toward rehabilitating existing processing capacity rather than building a new facility.

The International Finance Corporation approved financing for agricultural producer ZZ2 in February, with the investment recorded in March 2026. The project covers avocado production, tomato cultivation in net houses, solar power for farming operations and refinancing of existing debt.

Egypt and South Africa Advance Agricultural Funding Reforms

Egypt signed two agricultural development agreements with the International Fund for Agricultural Development (IFAD) on November 2, 2026.

The larger agreement provides €58.22 million in concessional financing for improved water management in the Nile Valley. A separate $470,000 grant, funded by China’s Ministry of Finance, will support agricultural technology transfer and climate adaptation.

The government’s 2026/27 budget plans also provide more than EGP 50 billion for agricultural export promotion, compared with EGP 45 billion in the previous financial year.

Egypt is introducing digital customs procedures through its Nafeza platform, with the OECD reporting a target to reduce clearance times from approximately eight days to 48 hours.

South Africa began implementing its Comprehensive Producer Development Support policy nationwide in 2026, extending assistance across household, smallholder and commercial farming categories.

The government also consolidated two agricultural grant programmes covering infrastructure, training and market access. Provincial authorities are responsible for delivering support under the revised arrangements.

The OECD has recommended reducing Egypt’s concentration of support on staple crops and increasing investment in agricultural research and water efficiency.

For South Africa, it proposes reviewing sugar import protection and directing more resources toward rural infrastructure. These recommendations have not been adopted as binding reforms, leaving future policy changes dependent on government decisions.