الهيئة العامة للرقابة المالية

Dr.  Alaa Farouk – Minister of Agriculture and Land Reclamation:

• The state is dedicated to bolster insurance protection for farmers, offering them comprehensive support.
• The Agricultural Takaful Fund is crucial; it supports small farmers and breeders by providing compensation and safeguarding them from risks and disasters.

Dr. Mohamed Farid – FRA Chairman:

• The Authority will offer comprehensive technical support and expert consultation to the Fund, ensuring its effective and efficient operation.
• Agricultural Takaful Fund is set to deliver vital insurance coverage, empowering agricultural workers to mitigate climate and other inherent risks, thus safeguarding their operational continuity.

Dr. Mohamed Farid, FRA Chairman hosted Mr. Alaa Farouk, Minister of Agriculture and Land Reclamation, at FRA’s headquarters in Smart Village. Their crucial meeting focused on expediting the implementation of the Agricultural Takaful Fund’s action plans and strengthening its role moving forward.

During the discussion, the Minister of Agriculture underscored the state’s unwavering commitment to bolster insurance protection for farmers. He emphasized providing comprehensive support, including compensation and protection against risks and disasters. This proactive approach aims to ensure the stability and increased productivity of the agricultural sector through technical assistance and coverage for damages stemming from natural calamities and pest infestations affecting crops, thereby mitigating their impact.

Minister Farouk further highlighted the paramount importance of the Agricultural Takaful Fund. He described it as a fundamental pillar for supporting small farmers and breeders, offering vital compensation and protection from risks and disasters. Its role is essential in stabilizing the agricultural sector by addressing damages caused by natural disasters and other pest-related threats to plant produce, ultimately limiting their adverse effects.

Minister of Agriculture elaborated, stating that this productive collaboration with the Financial Regulatory Authority will be pivotal in activating the Fund’s role and realizing its ambitious goals, while simultaneously safeguarding farmers’ investments from potential threats.

Dr. Mohamed Farid, FRA Chairman affirmed  FRA’s comprehensive support for Agricultural Takaful Fund. He highlighted that the Authority will provide technical assistance and expert guidance to ensure the Fund operates with maximum effectiveness and efficiency, all in accordance with the Unified Insurance Law.

Dr. Farid further clarified that Agricultural Takaful Fund will offer crucial insurance coverage to agricultural workers. This coverage aims to empower them to withstand climate and other inherent risks, enabling them to maintain their operations. This initiative is expected to significantly boost insurance, financial and investment inclusion across the sector.

He also pointed out that the Unified Insurance Law, enacted by President Abdel Fattah El-Sisi in July 2024, includes specific provisions for agricultural insurance and natural disaster coverage. This pivotal legislation creates a substantial opportunity to elevate the comprehensive support extended to farmers, ensuring their access to customized and fitting insurance solutions.

The two parties delved into strategies to activate the Fund’s crucial role, aiming to expand its insurance coverage to encompass both crops and livestock. A key focus was also placed on streamlining procedures to ensure agricultural sector workers gain access to more comprehensive insurance benefits. This vital support is designed to empower them to grow their businesses and crucially, to sustain their operations even when faced with future risks.

Concluding the meeting, both Minister Farouk and Dr. Farid expressed strong optimism that their joint cooperation will significantly boost the Agricultural Takaful Fund’s operations. They anticipate this collaboration will enhance the Fund’s ability to provide integrated insurance services, directly leading to more stable income for farmers and stimulating increased agricultural production across Egypt.

Agricultural Takaful Fund was established by a Presidential decree with the primary objective of covering damages from natural disasters and pest infestations affecting agricultural crops. This aims to mitigate their impact and safeguard beneficiaries’ income levels. To solidify its operational framework, Prime Minister’s Decree No. 2244 of 2024 later formed the Fund’s Board of Directors.

The Presidential decree specifically authorizes the Fund to enter into incentivized insurance contracts with plant agricultural producers and to engage in reinsurance with relevant companies. Beyond direct insurance, the Fund is also mandated to promote insurance awareness within the agricultural sector. It will also encourage and educate beneficiaries on adopting modern production technologies to reduce agricultural risks and enhance the creditworthiness of farmers and producers with financing institutions, facilitating their access to essential funding for their operations.