Minister Farouk underscored the state's commitment to supporting farmers through comprehensive insurance coverage against natural disasters and pest-related damages. He emphasized the fund's crucial role in compensating and protecting small farmers and breeders, enabling them to continue their work and secure their livelihoods. The fund will provide technical support and coverage for damages, thereby mitigating the impact of unforeseen events on plant agricultural crops and livestock.
Both officials highlighted the importance of their collaboration
in effectively activating the fund and achieving its objectives. This
partnership is expected to protect farmers' investments from potential risks
and contribute significantly to increasing insurance, financial, and investment
inclusion within the agricultural sector.
Dr. Farid affirmed the FRA's commitment to providing the
Agricultural Takaful Fund with technical support and advice, ensuring its
efficient operation in line with the Unified Insurance Law. This law, issued by
President Abdel Fattah El-Sisi in July 2024, includes specific provisions for
agricultural insurance and natural disaster coverage, creating a vital
opportunity to enhance support for farmers.
The discussions also focused on expanding the fund's
coverage to include both crops and livestock, simplifying procedures to ensure
easy access to benefits for agricultural workers. The goal is to provide
farmers with robust insurance and advantages that help them develop and sustain
their businesses, even in the face of future risks.
The Agricultural Takaful Fund was established by a presidential decree, with a subsequent Prime Minister's Decree (No. 2244 of 2024) forming its board of directors. The fund is authorized to enter into insurance contracts with producers at encouraging rates and engage in reinsurance with relevant companies. Beyond financial coverage, the fund will actively promote insurance awareness within the agricultural sector and encourage beneficiaries to adopt modern production technologies to reduce agricultural risks. It will also strengthen farmers' and producers' standing with financing entities, ensuring they receive the necessary funding for their operations.