Entlaq releases agritech report highlighting Egypt’s potential for agricultural innovation, growth

EGYPT – Entlaq, a leading agritech advisory firm, has published its first annual report on Egypt’s agritech sector, titled The Untapped Potential of the Egyptian Agri-Tech Sector: Driving Innovation and Growth. 

Produced in collaboration with key industry players, including Mahaseel Masr as a strategic partner and Farmtopia for Agricultural Reclamation as a platinum partner, the report offers a comprehensive overview of the sector’s current state, examining both the challenges and opportunities shaping Egypt’s agricultural future.

The agricultural sector remains a critical pillar of Egypt’s economy, contributing 11.6% to the national GDP and employing 18.1% of the workforce. 

The Ministry of Planning and Economic Development has reported consistent investments in agriculture, surpassing EGP 82.9 billion (US$2.7 billion) and projecting EGP 116.6 billion (US$3.8 billion) for the 2023/2024 fiscal year. 

These efforts aim to boost the sector’s output to EGP 2.43 trillion (US$78.3 billion), representing an anticipated 20% growth. 

Entlaq’s report highlights the role of agritech innovations in sustaining this growth, particularly in Egypt’s rural and border regions, where agricultural employment is vital for economic stability. 

Regional disparities persist, with rural areas relying more heavily on agriculture, such as 41.5% of employment in border areas compared to just 4.8% in urban regions.

“We are thrilled to launch Entlaq’s first sectorial report, marking the first of several reports we will publish to shed light on strategic sectors that contribute to economic development and sustainability,”Entlaq’s co-founder and Managing Director, Omar Rezk, commented. 

“Egypt’s agritech sector holds tremendous potential to improve productivity, achieve sustainability, and address the environmental and economic challenges facing the agricultural industry.” 

Rezk noted that the report aims to bridge data gaps and provide actionable policy recommendations to encourage investment and innovation within the agritech space.

Challenges and the push for technological adoption

The report details significant challenges that hinder the sector’s progress, such as water scarcity driven by climate change and population growth, as well as a heavy reliance on informal labor lacking access to technology and training. 

Informal labor’s limited access to job security and skills affects the adoption of advanced technologies, like mechanized harvesting, which could otherwise improve productivity. 

Additionally, the lack of modern storage facilities contributes to post-harvest losses, with as much as 45% of food supplies lost after harvest. 

Nonetheless, innovative startups are making strides to address these inefficiencies, aiming to cut food loss to below 2% through optimized storage and supply chain solutions.

As part of Egypt’s approach to water scarcity, the government has expanded water management programs and plans to increase cultivated land to 12 million feddans by 2030. 

Entlaq’s report advocates for adopting advanced solutions, such as precision agriculture and Internet of Things (IoT) technologies, which are proven to improve resource efficiency. 

Drip irrigation, for example, can reduce water usage by 50%, while hydroponic systems can increase productivity by 30% and reduce water consumption by 90%.

Mahaseel Masr’s role in advancing agritech innovation

Dr. Mohamed Abdel Rahman, CEO of Mahaseel Masr, expressed optimism about the partnership with Entlaq, emphasizing the importance of data and market intelligence in driving sector growth. 

“At Mahaseel, we believe that as we look to the future of agriculture in Egypt, integrating data and market intelligence is essential for driving growth in this sector, which contributes approximately 12% to Egypt’s GDP,” said Abdel Rahman. 

Mahaseel Masr has played a significant role in drawing foreign investments into Egypt’s agritech sector, providing the capital and resources to develop modern agricultural solutions.

Among Mahaseel Masr’s recent initiatives is the “Qamhawey” app, an AI-driven platform designed to support farmers in adopting digital transformation tools. 

Through real-time image recognition and crop health insights, the platform provides essential agricultural services and allows farmers to directly market and export crops, generating new revenue streams and promoting sustainable growth.

Future prospects and economic impact

Entlaq’s report projects a positive outlook for the agritech sector’s role in Egypt’s economic landscape, with forecasts indicating that agricultural exports could reach US$14 billion by 2030. 

Demand for Egyptian fruits, vegetables, and organic products is expected to grow, creating opportunities for export expansion. The report anticipates the agritech sector will generate over 50,000 new jobs by 2030, supporting rural development and bolstering the agricultural workforce. 

Additionally, efforts to achieve self-sufficiency in key crops are underway, with goals to raise Egypt’s wheat self-sufficiency to 70% by 2030, up from 47% in 2021.

Ongoing investments in Egypt’s agritech ecosystem reflect a growing venture capital interest, with the sector witnessing a 30% annual increase in funding for agritech startups. 

Leading companies like Mahaseel Masr, Mazare’, and FreshSource have secured substantial funding over the past two years, enabling large farms and agritech firms to integrate innovative technologies and enhance productivity.

The report also emphasizes the potential of ICT infrastructure, partnerships, and innovation to position Egypt as a regional agritech leader, aiming to ensure food security and sustainable economic growth in the face of environmental challenges.