An Economic Study of the Reality of Agricultural investment in Egypt during the period (2005-2023)

Mohamed, Shmoaa Awad; Ghareep, Nermeen Saeed; Sofy El-Sayed, Amr Sayed

doi:10.21608/jassd.2025.368338.1042

An Economic Study of the Reality of Agricultural investment in Egypt during the period (2005-2023)

Document Type : Original Article

Authors

¹ Department of Economic and Rural Development, Faculty of Environmental Agricultural Sciences, Arish University, Egypt.

² Agricultural Economics Research Institute, Agricultural Research Center, Giza, Egypt.

10.21608/jassd.2025.368338.1042

Abstract

The agricultural sector is one of the leading productive sectors in achieving economic development. Despite the measures taken by the government to implement agricultural development programs at the vertical and horizontal levels to encourage investment in the agricultural sector, it still represents a small amount compared to other economic sectors, as total investments directed to the agricultural sector amounted to about 116.6 billion pounds during the year (2023-2024), at a rate of about 7٪ of the total investments. The research aimed to study the development of both national and agricultural investments, with the aim of identifying their time trends, and the percentage of contribution of agricultural investments to total national investments, and studying the determinants of agricultural investment in Egypt with the aim of identifying the most important of these determinants. The results indicated that the return on agricultural investment, the agricultural investment multiplier, the settlement coefficient for agricultural investment, and the agricultural capital intensification coefficient during the period (2005-2023) were greater than one, which indicates the efficiency of investments in the agricultural sector. The research recommended reconsidering the volume of investments directed to the agricultural sector to attract local and foreign investors, with the necessity of developing a clear agricultural investment map that works to attract local and foreign capital, and paying attention to the factors affecting agricultural investment to increase the volume of investment in the agricultural sector, such as working to maximize the profits achieved from these investments in order to increase the net agricultural profit, and determining the interest rate on agricultural loans that help attract agricultural investments.

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