Market Scan of Biofer lizers and

Biopes cides in Egypt

January 2024
 Acknowledgments
The study is funded by the Netherlands Agricultural Network and implemented by Enroot. The indings,
interpretations, and conclusions expressed in this report are those of the authors and contributors and do not
necessarily re lect the views of the organizations.

Attribution License

You are free to copy, distribute, transmit, and adapt this work for commercial purposes under the following
conditions:

Translations

If you are to create a translation of this work, please add the following disclaimer along with the attribution:
This translation was not created by the authors and should not be considered an of icial translation. The authors
shall not be liable for any content or error in this translation.

This paper has been coordinated and reviewed by Tycho Vermulen and Omar Abdellatif from the Netherlands
Embassy. Enroot Consultancy has supported the development of this paper. We would also like to express our
appreciation to all the experts and market enablers who dedicated their time to share their valuable insights
and expertise. We extend our gratitude to the representatives of the Ministry of Agricultural and Land
Reclamation.

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2
 Table of Content
October 2023 ................................................................................................................................................ 1

October 2023 ................................................................................................................................................ 1

Acknowledgments......................................................................................................................................... 2
Table of Content ............................................................................................................................................ 3
List of Tables .................................................................................................................................................. 5
List of Figures .............................................................................................................................................. 65
List of Abbrevia ons.................................................................................................................................... 65
Execu ve Summary ....................................................................................................................................... 8
I. ....................................................................................................................... Introduc on and Background
...................................................................................................................................................................... 9
II. .......................................................................................................... Purpose and Objec ves of the Study
.................................................................................................................................................................... 10
III. ................................................................................................................................. Applied Methodology
.................................................................................................................................................................... 11
i. Study limita ons ......................................................................................................................... 12
Chapter I...................................................................................................................................................... 14
The Egyp an Market: .................................................................................................................................. 14
Opportuni es and Challenges..................................................................................................................... 14
1.1 Overview of organic agriculture in Egypt .................................................................................... 14
1.2 Export Market Entry Opportuni es ........................................................................................... 18
a. Free trade zones ...................................................................................................................................... 20

b. Cancelled le er of credit................................................................................................................. 21

c. Dollar yield ...................................................................................................................................... 21

a. Intellectual property rights ............................................................................................................. 21

b. Organiza onal efforts ...................................................................................................................... 22

1.3 General Trade Barriers ................................................................................................................ 23

a. Mandatory registra on of factories expor ng to Egypt.......................................................................... 23

b. Valua on of imports........................................................................................................................ 23

c. Advanced Cargo Iden fica on (ACID) system limita ons ............................................................... 24

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d. Trade barriers facing biofer lizers and biopes cides exporters ..................................................... 24

Chapter II..................................................................................................................................................... 27
Impor ng Biopes cides and Biofer lizers in Egypt..................................................................................... 27
2.1 Overview of biofer lizers and biopes cides impor ng procedures in Egypt ............................. 27
a. Before the issuance of the Organic Agriculture Law of 2020.......................................................... 27

b. A er the issuance of the Organic Agriculture Law in 2020............................................................. 30

2.2 Impor ng cycle for biofer lizers and biopes cides at the General Administra on for Organic
Agriculture................................................................................................................................................... 31
2.3 Challenges and areas of improvement ....................................................................................... 34
Chapter III.................................................................................................................................................... 37
Untapped Business and Development Opportuni es ................................................................................ 37
3.1 Business Opportuni es ......................................................................................................................... 37
Market supply ............................................................................................................................................. 37

Market Products.......................................................................................................................................... 40

Busisnes Opportuni es ............................................................................................................................... 42

3.2 Development Opportuni es ....................................................................................................... 48

a. Policymaking interac on ................................................................................................................. 48

b. Engaging in local partnerships ........................................................................................................ 49

c. Transferring Research and Development ........................................................................................ 50

d. Launching a Mul - Stakeholder Pla orm (MSP) ............................................................................. 51

e. Developing an interac ve E-window............................................................................................... 52

Annex .......................................................................................................................................................... 58
Annex 1: Detailed Methodology ................................................................................................................. 58
a. Secondary research ......................................................................................................................... 58

II. ............................................................ Publica ons of the Ministry of Agriculture and Land Reclama on.
.................................................................................................................................................................... 59
III. ....................................................... Publica ons of General Organiza on for Import and Export Council.
.................................................................................................................................................................... 59
IV.................................................... Publica ons of General Authority of Investment and Free zones (GAFI).
.................................................................................................................................................................... 59

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V......................................................... Interna onal Federa on of Organic Agriculture Movements (IFOAM)
.................................................................................................................................................................... 59
VI. .........................................................................................Research Ins tute of Organic Agriculture (FiBL)
.................................................................................................................................................................... 59
VII. ................................................................................ Central Administra on for Plant Quaran ne (CAPQ)
.................................................................................................................................................................... 59
VIII. ................................................................................... EU trade reports and situa onal analysis studies.
.................................................................................................................................................................... 59
IX. ............................................................... Publica ons of The Egyp an Journal of Agricultural Economics.
.................................................................................................................................................................... 59
X. .................................................................................................... Relevant laws and execu ve regula ons.
.................................................................................................................................................................... 60
XI. ............................................................................................................................................ Nafeza – Egypt
.................................................................................................................................................................... 60
XII. ............................................................................................ Observatory of Economic Complexity (OEC).
.................................................................................................................................................................... 60
XIII. ................................................................................................................................... OECD library (FAO).
.................................................................................................................................................................... 60
XIV. ............................................................................................... Data and sta s cal bulle ns (i.e., Sta sta)
.................................................................................................................................................................... 60
XV. ............................................................................................ Other relevant research papers and ar cles.
.................................................................................................................................................................... 60
a. Primary research ............................................................................................................................. 60

Annex 2: Registra on in Nafeza and CargoX ............................................................................................... 63

XVI..ACID System
.................................................................................................................................................................... 63
Annex 3: List of Roundtable a endees ...................................................................................................... 74
Annex 4: Summary flyer .............................................................................................................................. 74
Annex 5: Importer’s registra on form ........................................................................................................ 74
Annex 6: Organic input’s registra on form ................................................................................................. 74

List of Tables
Table 1: Sample split.......................................................................................................................................................
Table 2: List of shipment documents.......................................................................................................................

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 List of Figures
Figure 1: Key stakeholders in biofertilizers and biopesticides sectors. .............................................................

Figure 2: Organic agriculture in Egypt - fact sheet ............................................................................................ 17

Figure 3: Importing biopesticides through APC. ................................................................................................ 28
Figure 4: Process of importing fertilizers .............................................................................................................. 29
Figure 5: Current import procedures of biofertilizers and biopesticides in the CLOA ....................... 31
Figure 6: Prevailing challenges and underlying root causes.......................................................................... 48
Figure 7: Investment opportunities in Egypt ....................................................................................................... 54
Figure 1: Key stakeholders in biofertilizers and biopesticides sectors. .................................................... 61

List of Abbrevia ons

ACID Advanced Cargo Identi ication

APC Agricultural Pesticides Committee

ARC Agricultural Research Center

CAPQ Central Administration for Plant Quarantine

CBE Central Bank of Egypt

CIF Cost, Insurance and Freight

CLOA Central Laboratory of Organic Agriculture

EU European Union

FiBL Research Institute of Organic Agriculture

FAO Food and Agriculture Organization

FTA Free Trade Agreement

GAFI General Authority for Investments and Free Zones

GDP Gross Domestic Product

GOEIC General Organization for Export and Import Control

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IDIs In-depths interviews

IFOAM The International Federation of Organic Agriculture Movements

ILAC International Laboratory Accreditation Cooperation

IPR Intellectual Property Rights

MALR Ministry of Agriculture and Land Reclamation

MoU Memorandum of Understanding

MSP Multi-Stakeholder Platform

NFSA National Food Safety Authority

OEC Observatory of Economic Complexity

TRIPS Trade- related Aspects of Intellectual Property Rights

WTO World Trade Organization

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 Execu ve Summary
The emerging international market for organic produce is driving demand for organic and biological
input supplies in Egypt, with biofertilizers and biopesticides playing a pivotal role in the country's
organic agriculture sector. The African and Middle Eastern markets are expected to experience a
signi icant 7% growth over the next ive years, presenting a substantial opportunity for investors
and suppliers.

Egypt's 2020 organic law has created a favorable business environment, assigning the Central
Laboratory of Organic Agriculture (CLOA) as the sole entity responsible for registering organic
agriculture inputs. However, the lack of clarity surrounding the registration process has created
challenges for exporters and importers, highlighting the need for transparent procedures and clear
guidance.
This study provides an overview on the regulatory environment and identi ies key business and
development opportunities in the Egyptian organic agriculture sector, including the production of
biological products, particularly biofertilizers. Dutch companies can capitalize on these
opportunities by:
* Establishing local production units in Egypt, leveraging the country's strategic location as a
gateway to Africa and the Middle East, as well as its competitive pricing environment.
* Developing partnerships with local startups and entities to navigate regulatory
frameworks and facilitate market access.

Additionally, development opportunities exist in engaging in local partnerships, transferring

research and development expertise, launching a multi-stakeholder platform, and developing an
interactive e-window to facilitate trade and knowledge sharing. By seizing these opportunities,
Dutch investors can enhance their market access, foster growth in the sector, and establish
themselves as market leaders in Egypt's organic agriculture landscape.

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 I. Introduc on and Background
International trade between Egypt and the Netherlands is characterized by its strategic importance,
marked by a signi icant growth and level of economic investments. During their meeting in November
2022, the Egyptian Minister of Trade and Industry and the Dutch Minister for Foreign Trade and
Development Cooperation highlighted the commitment of the Netherlands to strengthening
international economic relations with Egypt, citing its regional importance, and emphasizing Dutch
interest in investment across multiple sectors with a special emphasis on agriculture1.

According to the Observatory of Economic Complexity (OEC), over the past 26 years, Dutch exports
to Egypt have shown a consistent annual growth rate of 6.98 percent, from 428 million USD in 1995
to USD 2.47 billion in 20212, with pesticides and fertilizers recording USD 10.8 million and USD 6.6
million respectively3. Egypt’s exports to the Netherlands recorded USD 1.69 billion, according to the
United Nations Commodity Trade Statistics Database4. Mineral fuels, oils, distillation products,
and edible fruits, nuts, peel of citrus fruit and melons topped the list of goods imported from
Egypt. According to the agricultural advisor at the Netherlands Embassy in Cairo, direct collaboration
and partnerships between the Netherlands and Egypt contributed to boosting the agribusinesses
sector and consequently increasing Egyptian exports to international markets.

It is noteworthy that organic farming has witnessed a tremendous growth in Egypt, representing
about 3.1 percent of the total agricultural land area in 2020 5, marking a 10 percent growth rate from
20176. This in turn unleashes a promising growth opportunity for the Egyptian organic market for
input supplies especially biofertilizers and biopesticides.

Despite the evident strategic international trade between both countries, recent geopolitical con licts,
alongside the rising in lation rate, have exacerbated the economic landscape in Egypt. These

1 State information service. (2022).Egypt, the Netherlands discuss propelling economic

relationshttps://sis.gov.eg/Story/172810/Egypt percent2C-the-Netherlands-discuss-propelling-economic-
relations?lang=en-us
2 Observatory of Economic Complexity. (2021). Egypt/Netherlands.https://oec.world/en/pro ile/bilateral-

country/egy/partner/nld#:~:text=The percent20main percent20products percent20exported percent20from,exported

percent20 percent242.47B percent20to percent20Egypt
3 Ibid.
4 United Nations Commodity Trade Statistics Database. (2023). Netherlands Imports from

Egypthttps://tradingeconomics.com/netherlands/imports/egypt
5 ELSayed. K. (2020). The prediction of area and production for organic crops in Egypt and the determinants of local

demand for them. The Egyptian Journal of Agricultural Economics.

https://journals.ekb.eg/article_138258_f6cc6fceb18fcab6d4d2a737a2f6e7fa.pdf
6 Galal, S.. (2023). Organic Agricultural Land Area Egypt 2008-2021.

Statista.https://www.statista.com/statistics/990508/egypt-organic-agricultural-land-area/#statisticContainer

© Copyright Enroot 2024. All rights reserved.

9
challenges, coupled with dif iculties in sourcing foreign currencies and the frequent alterations in the
regulatory framework and trade systems lead retrospectively to multiple import barriers and
restrictions for the private sector, thereby impeding their ability to access the Egyptian markets.

Analyzing these challenges is key to identifying the prevailing bottlenecks and contributing to
designing the relevant solutions not only to smooth the importing process but also to highlight
various business opportunities. These opportunities will not only facilitate market entry in terms of
exports but also in terms of investment opportunities, thereby fostering bilateral agreements
between both countries and establishing a sound investment environment for Dutch exporters and
Egyptian market players.

II. Purpose and Objec ves of the Study

In that line, the purpose of this research mission is to facilitate and enhance the international
trade and investment environment between Egypt and the Netherlands with a special focus on
biofertilizers and biopesticides. This report aims to provide Dutch exporters and investors with a
comprehensive understanding of the Egyptian market, highlighting the regulatory frameworks, trade
systems, challenges, and best practices, as well as untapped business and development
opportunities..

The study provides a guide for Dutch investors to access the biofertilizers and biopesticides Egyptian
market as exporters and brings to their notice the expected challenges and corresponding coping
mechanisms7. In addition, it enables them to pursue business and investment opportunities. As such,
the main objectives of the market scan are as follows:

7 The study is considered an extension to the irst manual produced serving the same purpose yet over a wider scope of
agricultural product and input supplies (Check here à
https://www.agroberichtenbuitenland.nl/binaries/agroberichtenbuitenland/documenten/publicaties/2023/04/16/trade-
barriers-facing-dutch-exporters-in-egypt/Trade-Barriers-Facing-Dutch-Exporters-in-Egypt.pdf).

© Copyright Enroot 2024. All rights reserved.

10
 - Provide an introduction of Egyptian trade systems,
regulatory frameworks, and importing procedures.
- Analyze the biofertilizers and biopesticides Egyptian
market, highlighting the market opportunities, prevailing
products and the supply side as well.
- Develop a guiding manual to access the biopesticides
and biofertilizers Egyptian markets as exporters,
identifying the key steps needed to obtain import permits
and emphasizing on the different roles of the governmental entities, anticipated challenges,
and approaches to overcome.
- Highlight the prevailing and untapped investment and business opportunities in the
Egyptian market, focusing on their implementation mechanisms and potential risks.

Accordingly, the study is structured as follows:

 Chapter One: The Egyptian Market: Opportunities and Challenge - a general overview of
the Egyptian market, emphasizing on organic agriculture scene, biofertilizers and
biopesticides market in Egypt and the prevailing opportunities and challenges facing the
various actors.
 Chapter Two: Importing Biofertilizers and Biopesticides in Egypt- deep delve into the
importing procedures of organic fertilizers and pesticides, highlighting the key involved
governmental entities, the estimated time frame and costs and the prevailing challenges.
 Chapter Three: Investment and Untapped Business Opportunities- a set of proposed
interventions and promising business and investment opportunities in the Egyptian market.

III. Applied Methodology

In line with the purpose and objectives of the study, the adopted methodology is based on a
participatory approach where key stakeholders and relevant parties were involved in the
development of this study. Adopting a hybrid qualitative research methodology enriched the study
with hands-on experiences and insights and the qualitative research was conducted through
triangulating both secondary and primary sources of data as explained in the annex. Secondary
research mainly revolved around studying and analyzing previous studies, research papers,
and articles covering the same scope of the study as well as mapping the rules, regulations and trade
procedures in Egypt. On the other hand, primary research mainly involved conducting thorough

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11
 IDIs and meetings with the key stakeholders surrounding the Egyptian and the Netherland
ecosystems. Additionally, the study was concluded by a hybrid validation workshop combining key
Egyptian and Dutch ecosystem players to discuss and validate the outcomes of the study and the
means of moving forward.

i. Study limitations
This part documents the challenges faced by the research team while drafting the market scan study:

- Lack of of icial data

The biofertilizers and biopesticides market in Egypt is considerably new. Therefore, there is a lack of
of icial data regarding the market size and export potential. However, the data was approximated by
the team through forecasting and collecting information on the regional market and was
complemented and validated through the conducted IDIs.

- Unresponsiveness of some interviewees

Despite efforts, the research team encountered challenges reaching out to Dutch exporters. However,
the import procedures and challenges associated with biofertilizers and biopesticides were well-
explained by Egyptian importers as the other side of the same coin. They offered clear insights into
various procedures and challenges encountered. Additionally, interviewing governmental entities
was a major challenge as some were not responsive and did not participate in drafting the study due
to political considerations. As such, it is important to consider the external meeting policies of the
governmental entities to foster collaboration and bilateral agreements between both parties.

© Copyright Enroot 2024. All rights reserved.

12
 Chapter I:
The Egyp an Market:
Opportuni es and Challenges

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13
 Chapter I

The Egyp an Market:

Opportuni es and Challenges

The Egyptian market is characterized by a promising agricultural sector with diverse agricultural
value chains and a strong interlinkage with the industrial sector. Nonetheless, there are numerous
economic and procedural challenges hindering market accessibility and international trade,
especially for organic agriculture inputs. At the same time, public policies and programs are put in
place to eliminate trade barriers and facilitate the trading and circulation of organic agriculture
inputs.

This chapter provides an overview of organic agriculture in Egypt, with a special focus on
biofertilizers and biopesticides. In addition, the chapter sheds light on the procedures that must be
followed to access the Egyptian market, emphasizing the general trade and investment barriers that
exist.

1.1 Overview of organic agriculture in Egypt

Agriculture in Egypt is an expansive sector, characterized by its signi icant size and diversi ied
production throughout the years, contributing nearly 11 percent of the country's GDP in
20228. According to the Central Administration of Plant Quarantine (CAPQ), in 2022, Egypt's
agricultural exports reached nearly 6.5 million tons for the irst time, with 406 agricultural products
exported to 160 markets worldwide. Considering that Egypt relies signi icantly on agricultural
exports as a major source of foreign currency, with 34 percent of its exports directed to the EU9, the
country is committed to meeting European standards. This commitment unleashes the potential
for organic agriculture in Egypt. In line with the European Green Deal10, the European Commission
aims for a minimum of 25 percent of EU agricultural land to be dedicated to organic farming by 2030.

8 Galal, S.. (2023). Organic Agricultural Land Area Egypt 2008-2021. Statista.
https://www.statista.com/statistics/990508/egypt-organic-agricultural-land-area/#statisticContainer.
9 Central Bank of Egypt. (2023).Egypt’s Macroeconomic Overview. https://www.lynxegypt.com/assets/pdfs/LYNX-

Macroeconomic-Q1.pdf
10 The European Green Deal is a package of policy initiatives, which aims to set the EU on the path to a green transition,

with the goal of reaching climate neutrality by 2050.

© Copyright Enroot 2024. All rights reserved.

14
This objective justi ies the strict requirements imposed by governments regarding the exported
agricultural products and gradually eliminating the use of chemical substances.

The regulations governing organic production encompass various areas including crop
cultivation, food processing, soil conservation, and biodiversity preservation. Within these
regulations, one key provision is the prohibition of synthetic pesticides in organic farming practices.
The Codex Alimentarius is the primary global authority for Maximum Residue Limits (MRLs), which
are established relying on recommendations put forth by the FAO/WHO.11 Therefore, the increasing
interest in employing organic inputs is motivated by the desire to minimize the reliance on synthetic
agricultural inputs and mitigate concerns regarding Maximum Residue Limits (MRLs).

Representing 3.1 percent of total agricultural land area, with a total of 970 organic producers, organic
agriculture in Egypt has signi icant growth potential. 12 There is an evident 10 percent increase in
land dedicated to organic agriculture - growing from 105.91 thousand hectares in 2017 to around
116,000 hectares in 202113.

More to this, public policies are directed towards promoting organic agriculture in Egypt. This
directly aligns with the direction of the EU to eliminate importing agricultural products outside the
organic farming system. Egypt is committed to ensuring that its agricultural products meet European
standards14. In light of promoting the organic farming culture in Egypt, and to comply with the
decision of the European Union to suspend the import of organic agricultural products from any
country that does not have an organic agriculture law by 2020, it was necessary to issue legal
legislation that regulates organic agriculture in Egypt.
On January 26, 2020, the Egyptian Parliament sanctioned a new law to govern the organic
agriculture sector in the country15. The Organic Agriculture law in 2020 intends to eliminate the
adverse impacts of traditional farming practices that are reliant on synthetic chemicals for planting.
The law grants authority to both the Egyptian National Food Safety Authority (NFSA) and the CLOA
at the Ministry of Agriculture to supervise the law's implementation, regulate farms and factories

11 FAO Pesticide Registration Toolkit. https://www.fao.org/pesticide-registration-toolkit/information-sources/maximum-

residue-limits/en/
12 IFOAM. (2020). Boosting Organic Trade in Africa. https://www.giz.de/de/downloads/Market-Brief_Egypt_WEB.pdf.
13 Galal, S. (2023). Organic Agricultural Land Area Egypt 2008-

2021Statista.https://www.statista.com/statistics/990508/egypt-organic-agricultural-land-area/#statisticContainer
14 Al-Ashmawy, K. H., Ahmed, Z. A. A., & El-Sherif, L. M. (2020).Economic Aspects of Organic Agriculture in Egypt. The

Egyptian Journal of Agricultural Economics.

https://meae.journals.ekb.eg/article_192056_4456ee3fef94c1060ad6675b21d0ff80.pdf
15 Organic Egypt. (2020). Egyptian Law of Organic Agriculture. https://organicegypt.org/knowledge_bank/egyptian-law-

of-organic-agriculture/

© Copyright Enroot 2024. All rights reserved.

15
involved in the organic agriculture process, and develop conditions for the import and export of
organic or biological inputs and products16.

The increasing interest in employing organic inputs is not solely driven by export aspirations
but also addresses a prevalent challenge confronted by small-scale farmers. The farmers contend
with the issue of insect infestations that have developed resistance to conventional chemical
pesticides. In this regard, it is noteworthy that farmers exhibit a heightened awareness regarding the
utilization of biological control agents, as indicated by a private sector representative specializing in
biological industries during the roundtable.

These factors in turn contribute to the forecasted rising demand for biofertilizers and
biopesticides in Egypt. Despite the lack of of icial data regarding biopesticides and biofertilizers
markets in Egypt, as a new ield in the Egyptian market, the demand volume is forecasted to grow in
the following ive years by approximately 7 percent 17and 6.4 percent18 respectively, re lecting the
growing markets in Africa and the Middle East for biopesticides and biofertilizers. This growth is
anticipated to be directed towards the strategic crops with the highest potential to access the
international markets and that have a competitive advantage. The fact sheet below presents the
concentration of organic agriculture and the targeted crops in Egypt.

Certi ications bodies for organic products

Organic certi ication is a requirement to demonstrate a product has met the legal standards. The International
Federation of Organic Agriculture Movement (IFOAM) accreditation is the only fully international accreditation
program for certi ication bodies active in organic agriculture. In 2017, both national certi ication bodies lost
international accreditation from the IFOAM. Organic certi ications play a crucial role in fostering the growth of
organic agriculture by ensuring the quality of agricultural practices and preventing harm to both the land and
consumers' health. Presently, all certi ication bodies in Egypt are of European origin, which means that they are
costly for farmers seeking to certify their farms. According to the head of the Center Laboratory for Organic
Agriculture, it is anticipated that national certi ication bodies will regain their international accreditation by the
year 2025.

16 Organic Agriculture Law No. 12 in 2020.

17 Modor Intelligence. (2024). Middle East & Africa Biopesticides Market Size & Share Analysis - Growth Trends &
Forecasts (2024 - 2029). https://www.mordorintelligence.com/industry-reports/middle-east-and-africa-biopesticides-
market,
18 Ibid.

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16
 Figure 12: Organic agriculture in Egypt - fact sheet

Organic Agriculture in Egypt

Geographical Geographically, Al-Baheerah and Al-Fayyoum account for more than half of the
organic area, followed by Ismailia and Al-Wadi Al-Gadid.

The Market is strategically targeted with Figure 3: Egypt's map

certain products in which Egypt has the
competitive edge and demonstrating high
export rates. The demonstration and
selection of the presented value chains
highly relied on the conducted discussions
and IDIs towards assessing the crops
entailing potential for organic agriculture.
This stems from these crops’ competitive edge
in the Egyptian market and them shaping the
Egyptian exporting scheme. As such,
penetrating these market entails signi icant
potential as a milestone towards complying
with the Green Deal across the prosperous crops and value chains in Egypt.

In 2019, Egypt played a signi icant role as one of the primary sources of organic vegetables in the
global Market, contributing to 26 percent of the total imports. Additionally, Egypt held a 1.7% share
in the overall organic imports during the same year.19 Key subsectors with a high potential in organic
agriculture include products with high international market access especially to European Union
countries, evident competitive advantage and unique selling crops in Egypt as displayed in the
following fact sheet.

19 FiBL survey (2021).

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17
 In 2021, Egypt's orange exports totaled 1.5 million metric tons. Notably, in 2019,
Egypt achieved a record export volume of 1.7 million metric tons, thereby
establishing itself as the leading global supplier of fresh oranges by volume.
(TRIDGE, 2021).
Oranges
Egypt’s table grape exports amounted to about 128.46 metric tons in 2020.
(Advances in Social Sciences Research Journal, 2023). The EU is the primary
importer of Egyptian table grapes, with the Netherlands having 21 percent
of the export market share. (Global Agriculture Information Network, 2020).
Furthermore, grapes cultivation represents 2.7 percent of the total organic
Grapes
agriculture area. (FiBL, 2021).
“Already organic”

Egypt is the world's largest exporter of frozen strawberries. The annual volume
of frozen strawberries exported by Egypt is approximately 140,000 tons, which
accounts for about 20 percent of the total global export quantities. (Egypt
Business Directory, 2023). The EU countries are the most important export
destination for Egyptian frozen strawberries, including the Netherlands as
one of the key importers after Germany. On another note, Ministerial Decree
No. 670 of 2017 established the Egyptian Agricultural Export Control System to
Strawberry
monitor and regulate the agricultural processes, from cultivation to packaging, to
ensure the application of good agricultural practices and safe pesticide usage. This
decree resulted in a signi icant reduction in the rejection of fresh strawberries
exported to Europe, decreasing from 15 cases in 2017 to only one case in 2018.
(East Fruit, 2023).

According to CAPMAS, Egypt’s onion exports surged by 95.9 percent to reach USD
129.3 million during the irst six months of 2023. Egypt signi icantly increased its
onion exports to the EU during the period from July 2022 to June 2023, reaching
128,000 tones. The surge was driven by a crop failure in the EU caused by drought,
which led to an increased demand for Egyptian onions given its competitive price
following the Egyptian pound devaluation. The Netherlands remained the key

Onion importer of onions from Egypt in the FY 2022/23. (East Fruit, 2023).
However, the Egyptian Ministry of Trade and Industry decided to ban onion
exports from October 2023 to April 2024 due to the rising prices in the local

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18
 Egypt demonstrated a remarkable growth in garlic exports, experiencing a
signi icant increase by 167.6 percent since 2014, with a total export value of
USD 27.3 million in 2019 (the 6th country highest dollar value worth of garlic in
2019). (GEO Exporting Agent, 2021). Egypt is the second largest supplier of
garlic to EU countries. However, according to East Fruit, the pace of export
growth may slow down slightly, knowing that Egypt is perceived as a “seasonal
Garlic player” and not present on the export markets all year round. (East Fruit, 2023).

The pickles industry in Egypt is characterized by informality, which makes it

dif icult to accurately determine its investment volume. Egypt exports pickles
annually, reaching approximately USD 140 million (average export in the years

Pickled 2020-2021). Pickled olives account for 40 percent of exports because olive

olives cultivation represents 1.5 percent of the total organic agriculture area. (FiBL,
2021).
“Already organic”

In 2019, Egypt had the second-largest organic arable crops, with over 97,000
hectares, mainly consisting of medicinal and aromatic plants (MAPs). The
total exported volume for MAPs and herbs during FY 2019/2020 reached
Medicinal around 35,000 ton and was shipped to 86 countries globally with a total
and export value of USD 55 million. (Daily News Egypt, 2020).
Aromatic
Plants

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19
1.2 Export Market Entry Opportunities
The Egyptian market is featured with multiple incentives and trade agreements that has contributed
to facilitating of international trade and fostering bilateral agreements, especially with the European
Union.

The European Union-Egypt Free Trade Agreement (FTA), also known as the Association Agreement,
was signed in 2004, representing a signi icant opportunity that streamlines bilateral trade. The two
parties inalized an agricultural annex to their FTA in 2010, liberalizing trade for over 90 percent of
agricultural goods and gradually reducing customs duties fees until elimination for certain products.
It is important to note that, while the agreement covers a wide range of agricultural goods, there are
no speci ic provisions mentioned for the trading of organic inputs. Additional national measures have
been implemented to remove trade barriers, and the details of these initiatives are outlined in the
following sections.

a. Free trade zones

Law No. 72 of 2017 on Investment Guarantees and Incentives governs the operations of both
Public and Private Free Zones, in addition to the regulations governing the
management of free zones, as stipulated by Investment Minister's Decree No. 39 of
2019. The law offers exemptions for projects from customs taxes, sales tax, and various
other fees. The imported products are subject to an annual duty of 1 percent of their
Cost, Insurance and Freight (CIF), except for transit goods. The General Authority for
Investment and Free Zones (GAFI) oversees the implementation of the law's provisions,
The following are the free trade zones in Egypt:

 Alexandria Free Zone  Port Said Free Zone

 Craftsmen Free Zone (Giza)  Qeft Free Zone (Qina)
 Damietta Free Zone  Safaga Free Zone (Red Sea)
 East Port Said Port  Saleyeya Free Zone (Sharqiyya)
 Ismailia and New Ismailia Free Zones  Shebin El-Kom Free Zone (Manu iyya)
 Matahra Free Zone (Minya  Sohag Free Zone
 Media Free Zone (Giza)  Suez Free Zone
 Nasr City Free Zone (near Cairo Airport)  Toshka Free Zone (Aswan)
 Nuweiba Free Zone (South Sinai)  10th of Ramadan Free Zone (Sharqiyya)

© Copyright Enroot 2024. All rights reserved.

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b. Cancelled letter of credit
In December 2022, the Central Bank of Egypt (CBE) cancelled the use of Letters of Credit (L/C)
system, which previously required import payment transactions to occur between two banks
before import clearance20. This shift was prompted by the challenges associated with letter of
credits, which were mandated by the Central Bank of Egypt in February 2022 but resulted in logistical
issues and stranded goods at Egyptian ports. The decision to use collection documents allows for
direct dealings between importers and exporters, with the bank serving as an intermediary. The
change aims to streamline import operations, prevent port congestion, and ensure the availability of
foreign currency for import transactions in Egypt.

c. Dollar yield
Egypt is facing a signi icant challenge related to the scarcity of the dollar currency. The lack of
foreign currency has prompted all companies to prioritize exports. The conducted interviews
with different sectoral experts revealed that Egyptian traders are considering the adoption of a
strategy known as the 'dollar yield’ to address the issue. Essentially, the strategy describes a process
whereby the proceeds from selling a product are reinvested domestically, preventing any out low of
money from the country. This strategy is driven by the government's stance, which mandates that any
imported product must actively contribute to the country's dollar revenue. 21

a. Intellectual property rights

Egypt is a member of the main international agreements on intellectual property rights (IPRs).
Notably, as a member of the World Trade Organization (WTO), Egypt is party to the Trade- related
Aspects of Intellectual Property Rights (TRIPS) agreement, which sets minimum standards for the
protection of copyrights and trademarks, including geographical indications. To better align its IPR
system with international standards, Egypt approved Intellectual Property Rights Law No. 82 in May
2002, and it came into force in 200522. The agreement covers the protection of marks, trade names
and geographical indications.

20 Business Today Egypt. (2022). Lifting Restrictions on Imports.

https://www.businesstodayegypt.com/Article/7/1942/Lifting-Restrictions-on-Imports-Egypt percentE2 percent80
percent99s-central-bank-cancels-working-with
21 Egypt recently secured an expanded $8 billion deal with the International Monetary Fund (IMF), supplemented by a $1.2

billion loan for environmental sustainability. This move comes as Egypt aims to stabilize its economy amidst ongoing
challenges. With the central bank's decision to unshackle its currency and implement a signi icant rate hike, the country is
signaling a commitment to restoring investor con idence and addressing chronic foreign currency shortages. This strategic
shift towards injecting more dollars into the economy re lects Egypt's efforts to mitigate currency luctuations and facilitate
trade.
22 World Intellectual Property Organization (WIPO). (n.d).https://www.wipo.int/wipolex/en/legislation/details/1301

© Copyright Enroot 2024. All rights reserved.

21
Moreover, Egypt is a member of the International Union for the Protection of New Varieties of
Plants (UPOV) since 1991. UPOV is an intergovernmental organization headquartered in Geneva,
Switzerland. Established in 1961 through the International Convention for the Protection of New
Varieties of Plants (UPOV Convention), UPOV's mission is to establish and promote an ef icient system
of plant variety protection to foster the development of new plant varieties. The UPOV system allows
individuals, farmers, researchers, public institutes, and private companies to qualify as breeders
without restrictions. By granting breeders of new plant varieties an intellectual property right called
the breeder's right, the UPOV Convention serves as the foundation for member countries to
incentivize plant breeding efforts.23

b. Organizational efforts
Besides the national efforts to strengthen organic agriculture in Egypt, there are
complementary organizational initiatives focused on promoting organic agriculture by raising
awareness and providing vocational training.

Notably, Organic Egypt24contributes to the incorporation of organic farming programs into

educational curricula and youth-oriented institutions. These initiatives aim to promote
understanding of organic agriculture's bene its for the environment, human health, and society.
Moreover, Organic Egypt organizes awareness campaigns tailored for private sector entities.
Additionally, SEKEM25's Vocational Training Center (VTC) plays a crucial role in contributing
signi icantly to the promotion of organic agriculture. It achieves this by providing young individuals
with the essential skills required in the local labor market. The center's curriculum is designed to
prepare students for self-employment, offering specialized courses speci ically focused on organic
agriculture. Furthermore, the presidential initiative "Sanaiya Masr" or (Egypt’s crafters in English)
aims to underscore the importance of learning industrial craft and agricultural professions. As part
of this initiative, Ejada e-learning platform offers specialized training courses as part of the 'Sanaiya
Masr' initiative, including the training course Production of Healthy Food under the Organic Farming
System26.

23 International Union for the Protection of New Varieties of Plants (UPOV). (2024). Publication No.
437.https://www.upov.int/edocs/pubdocs/en/upov_pub_437.pdf
24 Organic Egypt. (2024). Our Activities. https://organicegypt.org/our-activities/
25 SEKEM. (n.d.)About Us. https://sekem.com/en/index/
26 Ejada.https://www.ejada.edu.eg/Browse/AllPlaylists?subCategoryId=20&categoryId=1#

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1.3 General Trade Barriers
Despite the incentives system in place, exporters and importers face multiple challenges and general
barriers regarding access to market information, changing laws and policies and international
economic factors.

Trade barriers can be classi ied into obstacles faced by Egyptian importers and foreign
exporters targeting the Egyptian market. Regarding Egyptian importers, a signi icant challenge
arises in purchasing goods from abroad due to the scarcity of foreign currency. It is noteworthy that
Egypt's net foreign assets fell into a record de icit in June 202327. As for the barriers facing exporters
they are listed as follows:

a. Mandatory registration of factories exporting to Egypt

One of the main barriers that encounters Dutch exporters when exporting to Egypt is the
requirement of mandatory registration of companies at the General Organization for Export
and Import Control (GOEIC), as per Decree No. 43/2016 and No. 44/2019. Factories exporting
speci ic types of products, including agricultural products, will have to register their factories.
Moreover, factories must submit a certi icate indicating that they have a quality control system in
place. Adding to that, documents must be approved by the Chamber of Commerce and the Egyptian
Embassy at the country of origin. Ministerial Resolution 43/2016 was amended by Decree No. 195 of
202228. The updated decree introduces changes, particularly in Article 3.5, requiring registered
companies to update their documents within 30 days of the expiration of their validity period.
Additionally, the decree emphasizes the necessity of a quality control system certi ication from a
recognized body af iliated with the International Laboratory Accreditation Cooperation (ILAC) or the
International Accreditation Forum (IAF), or an approved governmental entity, for entry into the
Egyptian market.

b. Valuation of imports
The Egyptian government adopted the new Customs Law No. 207 of 2020 on 11 November.
Consequently, the old Customs Law No. 66 of 1963 and the Customs Exemptions Law No. of 1986
have been canceled. According to Article 31 of the executive regulations of Customs Law

27 Magdy, M.. (2023).Egypt Currency Squeeze Sinks Bank Foreign Buffers to New Low." Bloomberg..
https://www.bloomberg.com/news/articles/2023-08-01/egypt-s-currency-squeeze-worsens-as-banks-foreign-buffers-
sink?embedded-checkout=true
28 GOEIC. (2022).Updated Regulated Product List under the GOEIC Egypt Programme. https://www.exports-to-

egypt.com/media/news/updated-regulated-product-list-under-the-goeic-egypt-programme

© Copyright Enroot 2024. All rights reserved.

23
207/2020, the value of imported goods declared for customs purposes should be their actual
value. This includes the price actually paid by the purchaser plus costs actually paid but not included
in that price (e.g., commissions, brokerage charges, packing cases costs, packaging, and wrapping
costs) and other related expenses. This provision validates Articles 11 and 22 of Customs Law
66/1963 (that is now canceled) and is in accordance with the implementation of the General
Agreement on Tariffs and Trade (Customs Valuation Agreement).

Despite this agreement, the Egyptian Customs Authority do not necessarily follow this approach and
in some cases valuation at customs is conducted on case-by-case basis. For instance, in some cases,
customs authorities may reject the value of imports stated in the commercial invoice despite being
sealed by the Chamber of Commerce in the country of origin. Therefore, the Customs Authority
reevaluates the value of imported goods and assigns a new price value to the imported products as
the authority sees convenient. Hence, customs put the imports in a higher value bracket, leading to
imposing higher tariffs on the imported products. Moreover, the operators are subject to a penalty
that is equal to the value of the levied tariff.

c. Advanced Cargo Identi ication (ACID) system limitations

In line with the Egyptian government plans to digitalize the Egyptian economy, a new
electronic system for the pre-registration of shipment information called the Advanced Cargo
Information (ACI) system has been introduced by the Ministry of Finance and the Egyptian
Customs Authority in 2021. The system was a core challenge, especially during the irst phase of its
implementation. The interface was incomplete and unclear. This problem is no longer an issue as the
interface has been effectively developed and improved. The main issue that remains currently is
that the process is not fully digitalized. The whole point of creating the system was to reduce the
time of release at the customs and transform the process into a digitalized one. However, the
importers remain obligated to show hard copies of the shipment’s documents despite having already
sent them through the Nafeza and Cargo X systems. The issue is expected to be resolved when the
system is fully operating with no expected technical bugs or dif iculties from the importers’ side. The
details of this process are thoroughly explained in the annex.

d. Trade barriers facing biofertilizers and biopesticides exporters

Apart from the general trade barriers encountered by foreign exporters upon entering the
Egyptian market, traders of organic agriculture inputs encounter speci ic challenges.
Considering the potential risks associated with the insecure trading of biofertilizers and
biopesticides, the Egyptian government emphasizes strict procedures for importing organic

© Copyright Enroot 2024. All rights reserved.

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agriculture inputs from abroad. Import procedures include the mandatory registration of the
imported organic input at the government body responsible for the registration of biofertilizers and
biopesticides, which is af iliated to the Ministry of Agriculture and Land Reclamation (MALR). This
poses a challenge for exporters due to the dif iculty of accessing suf icient information about the
registration procedures, as well as the existence of multiple entities involved in registration after the
issuance of the new Organic Farming Law in 2020, as further explained in the following chapter.

© Copyright Enroot 2024. All rights reserved.

25
 Chapter II:
Impor ng Biopes cides and
Biofer lizers in Egypt

© Copyright Enroot 2024. All rights reserved.

26
 Chapter II

Impor ng Biopes cides and Biofer lizers in Egypt

This chapter describes the whole process of obtaining the import permits for biopesticides and
biofertilizers in Egypt. The chapter covers the anticipated timeline, required paperwork and
estimated fees. It includes a mapping of the roles of the various governmental entities involved in the
process. Furthermore, this emphasizes the expected challenges and barriers, capitalizing on previous
experiences of the stakeholders and Dutch exporters interviewed.

2.1 Overview of biofertilizers and biopesticides importing

procedures in Egypt
To enter the Egyptian Market, any organic input must be pre-registered by an Egyptian
governmental entity. The Ministry of Agriculture and Land Reclamation (MALR) is the af iliated
government body for registering organic inputs, whether they are domestic or imported. The
supervision of pesticides and fertilizers is carried out by multiple entities af iliated with the ministry
as follows:

a. Before the issuance of the Organic Agriculture Law of 2020

Before the issuance of the Organic Agriculture Law of 2020, importing biopesticides was solely
regularized by the Agricultural Pesticides Committee (APC). The Committee is responsible for
registering local and imported chemical and organic agricultural pesticides. The inal procedures for
registering pesticides were issued through Ministerial Decree No. 974 of 2017 regarding the
registration, trade, and use of agricultural pesticides in Egypt. Figure 3 shows the main steps and
processes of importing biopesticides through APC. Considering that this information was obtained
from in-depth interviews with Egyptian importers, in addition to the data available on the APC
website.

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27
 Figure 23: Impor ng biopes cides through APC.

On the other hand, the Agricultural Fertilizers Committee (AFC) is responsible for registering local or
imported chemical fertilizers. The conducted interviews emphasized that AFC does not recognize
biofertilizers and consequently does not register organic fertilizers, despite them being a part of the
registration process as per Ar cle 20 of Temporary Agriculture Law No. 44 of 2002. Accordingly, some
organic fertilizer companies tended to register their local/imported products as “chemical fertilizers”
to go through the recognized process by AFC. This in turn leads to inaccuracy in detecting the size of
the fertilizers market in Egypt and the differences between the importing process of organic versus
chemical fertilizers.
The following infographic demonstrates the process undertaken by the AFC.

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 Figure 34: Process of impor ng fer lizers

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29
 b. After the issuance of the Organic Agriculture Law in 2020
Following the issuance of the Organic Agriculture Law, the Central Laboratory for Organic Agriculture
(CLOA), stablished in 2002 within the structure of the Agricultural Research Center (ARC), became
the only government entity responsible for disseminating concepts of organic agriculture, scienti ic
and technical supervision, and conducting research to solve production problems facing organic
farmers. However, it was not involved in registering organic inputs before the issuance of the law. This
law granted regulatory and supervisory authority over organic agriculture to two entities: the
General Administration of Organic Agriculture (GAOA), a department af iliated with the CLOA, which
assesses organic production inputs, and the National Food Safety Authority (NFSA), which monitors
products in the market. Both entities renewed the conditions for importing organic inputs.

According to the Execu ve Regula ons of the Organic Agriculture Law, which were issued by the
Ministry of Agriculture and Land Reclamation (MALR) under Decree No. 169 of 2021, a permanent
coordinating committee for organic agriculture was formed. This committee operates under the
coordination of the Minister of Agriculture in collaboration with the head of NFSA. It includes
representatives from the authority and the GAOA, tasked with developing work regulations and
coordinating between the two entities. It is worth noting that during our ield research, trying to
understand the role of the Central Laboratory in the process of importing organic agricultural inputs,
the director of the Laboratory did not make any reference to the coordinating committee. The focus
was solely on the GAOA, identi ied as the primary representative for the Central Laboratory,
overseeing the registration procedures for inputs.

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 2.2 Importing cycle for biofertilizers and biopesticides at the
General Administration for Organic Agriculture
The primary enhancement introduced by the newly established Administration is that an entity was
designed to authorize the import of biofertilizers. Additionally, the procedures are more streamlined
and cost-effective, with a trial period not exceeding three months The registration requirements, as
outlined in the executive regulations of the Organic Agriculture law of 2020 Decree No. 169/2021
and communicated by the director of the Centre Laboratory of Organic Agriculture, are summarized
in the following steps as shown in the igure below.
Figure 45: Current import procedures of biofer lizers and biopes cides in the CLOA

The following represents the process in the form of the frequently asked questions by the exporters
and importers as well.

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 What are the required steps to import biofertilizers or biopesticides in
Egypt?

The stakeholder should apply for the registration of the organic input (biofertilizers or biopesticides)
intended for use for a period not exceeding 6 months before its import. A sample of the input should
be provided for the trial period.

How long does the trial period take?

The trial period undergoes experimentation of the provided sample for a period that ranges from 2
to 3 months.

What are the needed documents to obtain the registration certi icate?

The stakeholder must provide the required documents listed below:

1) Organic Input Certi icate issued by the relevant authority in the country of origin or
production, containing:
 Type of product, product description, and
purpose of use.
 References to the production standards
applied in the country of origin.
 Name of the conformity assessment body
overseeing production, if applicable.
2) Safety and Security Document.
3) Certi icate of Origin
4) Certi icate indicating the trade of the organic input in the country of production
(according to production standards in the country of origin).

See Annex 3 and 4 for the Importer’s Registration and the Organic Input’s Registration form with the
required documents speci ied.

What happens after I submit these documents?

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An assessment of the input could be conducted in the Laboratory. If the input is approved after the
trial period, the registration dossier is ready for review. The stakeholder must provide bio
ef icacy trial papers for the review of the registration dossier. When the dossier is approved, a
registration certi icate will be issued.

What are the estimated fees for this process?

The stakeholder must pay EGP 7000 registration fees and EGP 7000 label fees.

Note that fees are paid after ensuring the successful registration of the input to facilitate the
procedures and mitigate risks for importers

What is the expiration date for the obtained certi icate?

The registration certi icate is valid for one year from its issuing date. The
stakeholder must renew the registration 2 months prior to the end of
its validity, otherwise, the registration may be suspended temporarily.

The General Administration of Organic Agriculture coordinates with

other relevant administrative entities for the control of organic inputs
and allows them to trade in the local Market or for export.

Why were rejections charges issued before?

CLOA rejects speci ic types of inputs as follows:

 Synthetic pesticides.
 Genetically modi ied inputs, as their usage is prohibited in organic agriculture.

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 2.3 Challenges and areas of improvement
The challenges faced by biofertilizers and biopesticides importers in Egypt can be categorized into
regulatory challenges related to the registration requirements and administrative challenges arising
from the lack of communication between the relevant governmental entities. Additionally, dif iculty
accessing a uni ied source of information on import procedures adds to these challenges.

- Irrelevance of some mandatory paperwork

A common registration rejection is due to paperwork (i.e. missing papers, incomplete stamps, etc.).
Nonetheless, sometimes the required papers are arbitrary and could pose an obstacle for the
importer. One of the requirements for input registration is its mandatory registration in the country
of origin while the inputs are sometimes exempted from registration in their country of production.

In addition, one of the obstacles highlighted during the interviews was that occasional input
rejections occur because of the necessity for a toxicity and acute toxicity study. However, in the
country of origin, these studies are not conducted as they are deemed irrelevant and involve high
costs. Apart from the technical issues, inputs may be rejected due to their high costs, as assessed by
the reviewers who take into consideration the perceived affordability for farmers. Furthermore, the
long procedures may have a detrimental impact on the inputs with short supply chain that
necessitates sensitive handling and prompt actions during the custom release.

- Dispersion of the market information among various entities

Importers encounter dif iculties accessing information about import procedures due to a rough and
ineffective transition between the entities. As the current regulatory framework has not yet drawn
the ine line between the role of APC and that of CLOA, the area of importing and registering
biopesticides overlaps between both entities. As such, exporters have become uncertain about which
track should be undertaken and which entity should be followed to pursue import procedures. This
is also evident in terms of the biopesticides databases, companies exporting to Egypt, and types of
products registered where information are asymmetric between both entities.

- Poor promotion of the new organic committee

During the conducted interviews and stakeholder meetings with different representatives from the
private sector, some interviewees expressed their lack of awareness of the new regulations as they
con irmed that the law has not been adequately promoted, and that the current situation leaves them
confused. Changes in regulations and import and registration procedures are communicated through

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34
formal media channels that are not regularly updated. Consequently, stakeholders often resort to
informal means to obtain information, which is challenging and not well-systematized, resulting in
wasted time and inef iciency. Furthermore, the information available on of icial websites is not
commonly provided in foreign languages, which makes it dif icult for exporters to stay informed
about procedures and requirements.

© Copyright Enroot 2024. All rights reserved.

35
 Chapter III:
Untapped Business and
Development Opportuni es

© Copyright Enroot 2024. All rights reserved.

36
 Chapter III

Untapped Business and Development Opportuni es

The Egyptian market presents an advantageous environment for businesses involved in biofertilizers
and biopesticides. This is shaped by several factors, including recent regulatory changes governing
organic farming in Egypt and the emerging trend towards strengthening organic farming practices to
align with international standards.

This chapter is divided into two sections. The irst section presents the business opportunities
available for Dutch investors. The section includes an overview of current businesses operating in
the sector and the main products produced and their level of demand in the agroindustry. The section
identi ies the opportunities that Dutch investors could bene it from.

The second section identi ies the development opportunities that could be implemented by
development organizations, governmental entities, and with the support of Dutch service providers
where applicable. These opportunities are relevant to address the challenges facing organic farming
in Egypt.

3.1 Business Opportunities

Market supply
The market for fertilizers and pesticides in Egypt is traditionally dominated by producers of chemical
fertilizers and pesticides. However, the market is experiencing gradual progress toward higher
demand for organic fertilizers and pesticides.

The following mapping depicts the types of companies that exist in the market:
1. Companies that only produce biological products. Due to the regulatory considerations
explained in the previous sections, there is no data available on the number and/or size of the
companies producing biological products. The irst bio-producing company that was
established in Egypt29, Bio Egypt, was established as an exclusive distributor of Koppert B.V.
It began operations in Egypt in 200530, which makes it an outlier in the market; notable

29 Based on ield interviews

30 Bio Egypt. (n.d.). Bio Egypt. Linkedin. https://www.linkedin.com/company/bioegypt/about/ .

© Copyright Enroot 2024. All rights reserved.

37
 startups producing biofertilizers have been established in the past ive years. For example,
Nature Biocontrol was established in 202331.

2. Companies that only produce organic products. These companies are more common than
companies producing biological products in the market. A notable example is SEKEM Holding,
which was established in 1977 and is comprised of several companies, including ISIS
Organic32. Initially, the company started as a producer of medicinal herbs and food ingredients
and came to establish sub-organizations that provide agriculture training and promote
organic agriculture in Egypt.
3. Companies that produce traditional chemical products but that have also developed
new production lines for organic products. A notable example is Kafr El Zayat Pesticides
and Chemicals, which was established in 1957 and is a market leader in the Middle East and
Africa33.
4. Companies established in the previous decades produce traditional chemical products
only.

The following table shows examples of select companies based on the categorization above. The
examples of the companies show the development of the market over the years from traditional
chemical products to organic production lines and biotechnology. These examples serve to show the
type of potential partners for Dutch companies entering the Egyptian biofertilizer and
biopesticide market.

Company Year
Category About the Company Products
Name Established
Bio Egypt is the distributor Microbial 2005
of Koppert B.V in Egypt34 products,
Bio Egypt
Biological including
Solutions
products biofertilizers and
(investment in biopesticides.
biotechnology) Manufacturer of chitosan Chitosan
Chitosan
solutions for agriculture35 pesticides and
Egypt
fertilizers

31 Nature BioControl. (n.d.). Nature BioControl. Linkedin. https://www.linkedin.com/company/nature-agriculture-

solutions/about/ .
32 Sekem. (2018). Sustainable Development Since 1977. https://sekem.com/en/index/ .
33 Kafr El Zayat. (2022). KZ-Kafr El Zayat Pesticides and Chemicals. https://www.kz.com.eg/ .
34 Bio Egypt. (n.d.). Bio Egypt. Linkedin. https://www.linkedin.com/company/bioegypt/about/ .
35 Chitosan In inite Possibilities. (n.d.). Mena’s Leading Chitosan Solutions Manufacturer. https://chitosaneg.com/ .

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38
 Agri-biotech manufacturing Biofertilizers, 2016
enterprise and subsidiary biostimulants,
Royal Green
of Bio Pyramids36 biopesticides,
Technology
and animal
probiotics
Nature Company specialized in --- 2023
Biocontrol biotechnology research37
(Nature
Agriculture
Solutions)
International producer of ISIS Organic 1977
organic and biodynamic produces herbal
groceries, dried foods, tea, fruits and
textiles and natural vegetables,
pharmaceuticals. Sekem dates, honey, and
has established the spices
following companies: ISIS
Sekem
Organic, ATOS Pharma,
Nature Tex, and SEKEM
Healthcare. Sekem
established foundations
that promote sustainable
agriculture and that
Organic provide farmer training38.
products/ Compost producer in Organic 2009
Miegos
compost / Middle East and Africa39 agriculture
Compost
recycling compost
solutions Agri-tech startup Organic ---
specialized in innovations fertilizers from
Baramoda
for sustainable agricultural
agriculture40 waste
Beni Suef for Producer of organic Flower, 2009
Organic fertilizers41 vegetable and
Fertilizers animal compost
(AGRN)
Egyptian Sister company to Organic compost 1997
Company for Engineering Tasks Group
Solid Waste (ENTAG), specialized in
Recycling biomass and municipal
(ECARU) solid waste (MSW)42

36 Roya Green Technology. (2023). About Us. https://royalgreenbiotech.com/en/index.php .

37 Nature BioControl. (n.d.). Nature BioControl. Linkedin. https://www.linkedin.com/company/nature-agriculture-
solutions/about/ .
38 Sekem. (2018). Sustainable Development Since 1977. https://sekem.com/en/index/ .
39 Miegos. (2017). Growing Strong. Outgreens Egypt. https://miegos.com/ .
40 Baramoda. (n.d.). Why Baramoda. https://baramoda.org/about-us .
41 Beni Suef for Organic Fertilizers. (2023). Compost AGRN Are the Basis of Agriculture. https://agrn-compost.com/en/ .
42 ECARU. (2024). About Us. https://ecaru.net/en/p/3/who-are-we .

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39
 Lacto- Waste management Organic compost 2021
Bokashi startup43 out of kitchen
Egypt waste
Kafr El Zayat Producer of fertilizers and Bioinsecticides, 1957
Pesticides agricultural chemicals44 biofunghicides,
and and organic
Chemicals fertilizers
(KZ)
Producer of fertilizers, Speci ic -
pesticides and spraying Fertilizers,
machines45 Compound
Fertilizers,
Both organic
Natural
and chemical
Fertilizers,
fertilizers
Chema Adjuvant and
(organic as a
Industries PGRs.
newer
Insecticides,
production line)
Agricultural oil,
Acaricides,
Rodenticides,
Fungicides and
Herbicides.
Producer of fertilizers and Powder, liquid, -
TopFert for
organic compounds46 colloidal, and
Chemical
organic
Industries
fertilizers
Misr Nitrogen fertilizer plant47 Urea and 1998
Fertilizers ammonia
Chemical
Production
fertilizers
Company
(MOPCO)

Market Products
Based on the type of companies, there are different types of products in the Egyptian market:
chemical products, organic products, and biological products. Chemical fertilizers include
nitrate and potassic fertilizers and urea. 48 Chemical pesticides include fungicides, herbicides, and

43 Lacto-Bokashi Egypt. (n.d.). Lacto-Bokashi EGYPT. Facebook. https://www.facebook.com/LactoBokashi/ .

44 Kafr El Zayat. (2022). KZ-Kafr El Zayat Pesticides and Chemicals. https://www.kz.com.eg/ .
45 Chema. (2022). Shop by Company. https://chema.com.eg/ .
46 TopFert for Chemical Industries. (2022). Who Are We. https://www.topfertegypt.com/ .
47 MOPCO. (2020). Overview. https://www.mopco-eg.com/en/our-company/overview .
48
Byju's. (n.d.). What Are Chemical Fer lizers? h ps://byjus.com/ques on-answer/what-are-chemical-fer lizers/

© Copyright Enroot 2024. All rights reserved.

40
insecticides. 49 Organic products are essentially "all-natural plant feed" and include compost and
manure. Both biofertilizers and biopesticides are classified based on the microorganisms they are
composed of; examples of biofertilizers include nitrogen fixer, rhizobium and azotobacter
(https://unacademy.com/content/neet-ug/study-material/biology/classification-of-
biofertilizers/#:~:text=Fertilisers%20are%20classified%20based%20on,with%20examples%20ar
e%20explained%20below).

There are business opportunities available in the production of biological products,

particularly biofertilizers leveraging the growing demand for organic and biological products
in the agriculture sector in Egypt. Potential organic crops in Egypt are highlighted in the irst
chapter, providing valuable insights into the market.

Egypt boasts a signi icant agriculture export market in the Middle East, with Saudi Arabia
emerging as the largest importer of Egyptian agricultural products, totaling USD 407 million in
exports as of 2020.50 In addition, Saudi Arabia was the most prominent importer of Egyptian
processed food in the irst six months of 2023 at USD 150m, followed by Jordan at USD 75m, Libya at
USD 71.51 This robust demand for Egyptian agricultural products is complemented by the
region's increasing interest in organic and biological goods. For instance, according to the
Research Institute of Organic Agriculture (FiBL), the total land area under organic agriculture in Saudi
Arabia increased from 24.5 thousand hectares in 2017 to 26.6 thousand hectares by 2020.52 This
expansion in organic agricultural land contributes to the increased use of organic fertilizers, thereby
fostering market growth in the region. Consequently, Egypt stands out as a potential export hub in
the Middle East and a gateway to the Gulf countries.

Research has shown that biological products that are currently less available in the Egyptian
market due to the following causes:
 There are no locally produced equipment in Egypt to service the production lines of bio-
producing companies. One example is equipment that transforms liquid fertilizers to powder
fertilizers. As a result, producers incur high costs to consistently produce a product that

49
Byju's. (n.d.). Pes cides. h ps://byjus.com/chemistry/pes cides/
50
Galal, S. (2023). Value of exported agricultural goods into Egypt 2020, by major country. Statista.
https://www.statista.com/statistics/1394963/egypt-export-value-of-agricultural-products-by-major-country/
51
Food Expert Council (FEC) report.
52 Mordor Intelligence. (2024). Organic Fer lizer Market in GCC Countries - Market Size and Share Analysis - Growth Trends and

Forecasts (2024 - 2029). h ps://www.mordorintelligence.com/ar/industry-reports/organic-fer lizer-market-gcc

© Copyright Enroot 2024. All rights reserved.

41
 complies with quality standards, especially proper packaging. Production costs are trickled
down to farmers, many of whom are low-income.
 There are no locally produced input supplies for production, which also leads to higher costs
of production.
 There are no product standards established yet in the market, which leads to the following:
(1) unequal competition, as companies that introduce quality products cannot compete with
products that are lower-priced and less-quality, and (2) lack of consumer awareness, where
agricultural producers are unable to differential between high-quality and low-quality
products. In the context of Egypt, small-holder farmers may be unwilling to invest in
purchasing biological products and resort to cheaper, more traditional products in
consequence.
 Local companies lack access to supporting functions including knowledge transfer and
technological know-how. For example, the sector faces constraints regarding the lack of data
on the effects of chemical fertilizers, the lack of testing prior to product release, and the lack
of evaluation/testing of effect of new products53 .

At the same time, the companies interviewed emphasized the growing demand for organic
and biological products in the agriculture sector. The rise in demand is due to an increase in
awareness among smallholder farmers on the negative impacts of traditional products. By extension,
there is an increase in demand for organic food products in Egypt54 . According to the World Bank,
fertilizer consumption as a percentage of fertilizer production has decreased from 86.3% in 2000 to
43% in 202155.

Busisnes Opportunities
Considering the constraints faces by bio-producing companies, there is high potential for Dutch
companies to enter the market. the following are opportunities available to Dutch companies:

53 Yanni, Y.G, Dazzo, F.B., and Gomaa, A.M. (2016). Status of the Biofertilization Technology and Biosafety of Biofertilizers in
Egypt. In Pati, B. and Mandal, S.M (Eds), Recent Trends in Biofertilizers (pp.19-36). I.K International Publishers.
https://www.researchgate.net/publication/291166021_Status_of_the_Biofertilization_Technology_and_Biosafety_of_Biofe
rtilizers_in_Egypt .
54 GMI Research. (2023). Egypt Organic Food Market, Size, Share, Trends and Growth Report -Global Opportunities and

Forecast 2023-2030. https://www.gmiresearch.com/report/egypt-organic-food-market/ .

55 World Bank Group. (2020). Fertilizer consumption (% of fertilizer production) – Egypt, Arab Rep.

https://data.worldbank.org/indicator/AG.CON.FERT.PT.ZS?locations=EG .

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42
Opportunity #1: Establishing local production units in Egypt (industrial offshoring).
This serves as an:
 Opportunity to capitalize on the geographic location of Egypt to distribute products to
countries in the Middle East and Africa, which increase companies' competitiveness.
Production facilities could be built in industrial zones such as those in El Sadat City, 6th of
October, Menou ia, etc. Coupled with the presence of various investment incentives, these
factors have the potential to signi icantly lower production costs.
 Opportunity to capitalize on the recent waves of currency devaluation in Egypt, which
makes goods produced in Egypt cheaper for foreign customers, thereby increasing the
competitiveness of these goods in international markets.
 Opportunity to gain irst mover advantage by introducing new stable products to the
local markets that meet international standards and demand. Dutch companies could
bene it from the recent adoption of the New Organic Law and its facilitation of registration
processes in that regard.

Any Dutch investor interested in establishing a local production unit in Egypt must irst
register with GAFI. The registration process typically takes up to three months, and GAFI serves as
the primary Egyptian point of contact responsible for connecting foreign investors with all relevant
local entities to facilitate market entry. Following the completion of the registration process with
GAFI, the Dutch investor will have the option to either rent ready-made factories with monthly rents
ranging from USD 500 to USD 3000 or lease land to construct their own factory. These processes are
managed by the Industrial Development Authority (IDA). Obtaining licenses for the factory involves
registering with either the Pesticides Committee or the Central Laboratory of Organic Agriculture.
The duration for acquiring licenses ranges from 3 to 6 months for ready-made factories and at least
12 months for new factories. Finally, the Egyptian Organization for Standardization & Quality (EOS)
establishes speci ic quality and packaging standards.
The Dutch investor will have the opportunity to explore various incentives provided by GAFI
to promote investment, thereby facilitating the implementation of local production units.
Any Dutch investor interested in establishing a local production unit in Egypt must irst register with
GAFI. The registration process typically takes up to three months, and GAFI serves as the primary
Egyptian point of contact responsible for connecting foreign investors with all relevant local entities
to facilitate market entry. Following the completion of the registration process with GAFI, the Dutch
investor will have the option to either rent ready-made industrial complexes factories with monthly

© Copyright Enroot 2024. All rights reserved.

43
rents ranging from USD $500 to USD $300056 or lease land to construct their own factory. These
processes are managed by the Industrial Development Authority (IDA). Obtaining licenses for the
factory involves registering with either the Pesticides Committee or the Central Laboratory of Organic
Agriculture. The duration for acquiring licenses ranges from 3 to 6 months for ready-made factories
and at least 12 months for new factories. Finally, the Egyptian Organization for Standardization &
Quality (EOS) establishes speci ic quality and packaging standards.

The Dutch investor will have the opportunity to explore various incentives provided by GAFI to
promote investment, thereby facilitating the implementation of local production units. In pursuit of
fostering a conducive environment for investment and simplifying investment processes, the
Egyptian government implemented signi icant modi ications to Investment Law No. 72 of 2017
through the enactment of Law No. 160 of 2023 on 25 July. The following points describe all pertinent
incentives, including both the existing provisions and the amendments introduced by the new law57.

 General incentives

All investment projects, regardless of whether they were established before or after the
implementation of the Investment Law provisions, are entitled to general incentives. The only
exception is for projects established under the free zones system. These general incentives
encompass exemptions from stamp taxes and documentation fees for land registration contracts
necessary for the establishment of companies and establishments.

 Special incentives

Special incentives are tax bene its offered to both new and existing investors across various regions
of Egypt, aimed at deducting investment costs from the taxable base (net pro it) for up to a maximum
period of 7 years. These incentives are categorized into two areas (A and B) based on geographical
regions, each with different deduction rates. The Amendment Law has extended the timeframe for
establishing investment projects to qualify for special incentives by an additional three years, now
extending until October 2026 compared to the previous deadline of October 2023.

Area A includes the under-developed areas in Egypt: border governorates, including the Red Sea
governorate, South of Giza, Upper Egypt governorates, Suez Canal governorates, East Bank,

56 Please note that in the irst chapter.

57General Authority for Investment and Free Zones (GAFI). (n.d.). Law of Investment Guarantees.
https://www.ga i.gov.eg/Arabic/PublishingImages/Announcements/Law%20of%20Investment%20Guarantees%20and
%20Incentives.pdf

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44
Administrative Capital Zone, and the Golden Triangle’s Economic Zone58. In Area A, investors qualify
for a 50 percent deduction from the taxable base over a span of 7 years. Area B encompasses the
remaining regions of the country, where investors are eligible for a 30 percent deduction from the
taxable base over 7 years for speci ic project types. These projects include labor-intensive projects
with more than 500 employees and a wage cost exceeding 30 percent of the operating cost, and export
projects (with at least 50 percent exportation).

 Additional incentives
- Investment projects are authorized to establish special customs ports to facilitate import and
export processes.
- Fees for utilizing the project's designated land are exempted for up to ten years from the date of
operation, subject to approval from the Minister.
- Infrastructure and public utility costs are partially exempted, up to 50 percent, upon a decision
from the Prime Minister.
- The government subsidizes up to 50 percent of the project's public utility consumption for a
maximum of ten years.
- The state contributes to technical training expenses for project employees.
- Industrial projects commencing production within two years of land allocation may receive a
refund equivalent to half the land's value.
The Amendment Law introduces a provision under which projects eligible for Special Incentives, as
outlined in Article 11 of the Investment Law and its expansions, may receive a cash incentive ranging
from 35 percent to 55 percent of the paid tax. To be eligible for this cash incentive, the project or its
expansion must secure at least 50 percent of its inancing from foreign currency sources outside
Egypt. Moreover, the project is mandated to commence its operations within six years. The Ministry
of Finance is responsible for paying the cash incentive within 45 days of the tax return submission
deadline. Importantly, this incentive will not be treated as taxable income, providing an added bene it
to the eligible projects. This mechanism encourages foreign currency funding, timely project
implementation, and ensures a tax-free distribution of the cash incentive to enhance the overall
attractiveness of investment projects in Egypt.

58The Government of Egypt has set an objective to develop the Golden Triangle Economic Zone (GTEZ) covers Safaga,
Quseer, Qena and Qift to include mineral extraction activities, industrial facilities, touristic zones, commercial hub,
agricultural areas, and different classes urban areas, reconsidering infrastructures and to match with development.

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45
In addition to establishing production units/ factories, companies could establish ixed marketing
outlets in urban areas and link them to production areas through contract farming. Egypt faces the
absence of clear separation between organic and traditional farming. This results in a decrease in
productivity per acre of organic crops, due to the accumulation of harmful pesticides in the soil
because of the increased density of agricultural pests in farming areas. Therefore, there is an
advantage to the new desert farms that are considered ideal for organic farming, given the saturation
of older lands along the Nile Valley with pesticides and contaminated water over several decades.
Fixed marketing outlets could be initiated in direct alignment with GAFI, CLOA, and the Ministry of
Trade and Industry. Cooperating with these government entities would facilitate the process of
obtaining the needed permits and registration documents. In addition, it would establish a
collaborative dialogue to enhance investment environment in Egypt. In addition, it would establish a
collaborative dialogue to enhance investment environment in Egypt.

Opportunity #2: Developing partnerships to capitalize on the gradual rise of startups

in the sector. Dutch companies could enter formal agreements in the form of joint ventures or
licensing agreements, and/or it could establish joint marketing initiatives, supplier partnerships with
local companies. Such partnerships would support knowledge transfer and increase market
competitiveness and innovation in Egypt.

© Copyright Enroot 2024. All rights reserved.

46
 Business
Opportuni es
in Egypt

Local produc on Partnerships with

units local companies

Distribution Formal Simpler

First and second Cheaper agreements
across MENA agreements
mover advantage production costs (offshore (supplier
and Africa
companies) partnerships_
3.2 Development Opportunities
In addition to the business opportunities, there are other opportunities that address regulatory
challenges facing the sector. The identi ied challenges and hindering factors, as depicted in the
following diagram, trickle down to the lack of coordination among the key governmental parties. As
such, the proposed development opportunities are directed towards bridging the lack of sound
coordination among the relevant entities.

Figure 56: Prevailing challenges and underlying root causes

Irrelevance of some Dispersion of the Poor promotion of

mandatory market information the new organic
paperwork among various committee
entities

Lack of coordination among the key involved governmental parties

a. Policymaking interaction
In fostering a successful collaboration between Egypt and the Netherlands in the organic
agriculture, a robust policy framework plays a pivotal role. A collaborative effort between the
Embassy of the Netherlands and the Ministry of Agriculture is essential to secure the interests of
investors, whether they choose to establish businesses locally or engage in imports. Integrated
meetings between relevant authorities become imperative to establish coherent guidelines,
particularly focusing on the production and trade of organic inputs.
 b. Engaging in local partnerships
Dutch investors exploring opportunities in Egypt's organic agriculture sector can signi icantly
enhance their market access by engaging in strategic local partnerships. Collaborating with
local entities offers a gateway to facilitating import procedures, navigating regulatory frameworks,
and understanding the Egyptian market. Local partners can act as valuable allies in overcoming
bureaucratic challenges and ensuring a smooth entry into the market. Their insights into local
consumer preferences and distribution channels should provide Dutch investors with a competitive
edge, thereby streamlining the process of bringing organic products to Egyptian consumers.

Pro iling and choosing a suitable local partner should fall

under a thorough process of assessment, longlisting, and
shortlisting of the potential importers with the highest
capacity, willingness and skill in this sector59.

Assessing the potential local partners can adopt a

will/skill assessment that should help identify the key
potential partners with the highest willingness and capacity to
be a partner to host the companies’ operations in Egypt60.

Participation and engagement in the national agri-expos and

exhibitions is a key approach that should facilitate the engagement and networking among the key
potential stakeholders. The following table involves an event calendar of the agri-expos in Egypt.

Agricultural fairs and

Date Location
exhibitions

Agri Expo 26th – 28th February Green Desert Hotel, Cairo,

Egypt.

Agro Egypt 7th -9th July Cairo International Conference

Center , Nasr City, Cairo, Egypt.

59 A database of Egyptian companies can be found here: https://organicegypt.org/contact-database/

60
Will/skill assessment framework: will/skill assessment

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49
 Sahara Expo 10th – 12th September Egypt International
Exhibitions Center, Cairo,
Egypt.

Agrena 12th – 14th October Egypt International

Exhibitions Center, Cairo,
Egypt.

IOAM-MEA Expo 12th – 15th November Cairo International Convention

Centre, Cairo, Egypt.

c. Transferring Research and Development

In addition to import facilitation, Dutch investors should consider exploring Research and
Development (R&D) collaborations as part of their local engagement strategy. Partnering in
R&D, especially in areas that need enhancement in Egypt, such as quality control, transportation
logistics and ef iciency measures not only enhance operational ef iciency but also elevates overall
product quality. This collaborative exchange of knowledge and expertise presents a win-win
situation, as it could enhance the overall imports supply chain in the long term.

Collaborations can take the form of institutionalized partnerships between two

partners (i.e., Dutch exporter and Egyptian importer) where one of the articles in the
agreement stipulates a contract between both parties.

Another form of collaboration can be through providing services and vocational

training to the interested Egyptian importers who seek to enrich their knowledge and
expertise in this ield. The training can be hosted by a leading Egyptian company
through signing a memorandum of understanding (MoU) where other companies can
participate in the training program. Also, it can be in coordination with development
programs seeking to upscale organic agriculture in Egypt (CLOA, SEKEM, Organic
Egypt, etc.).

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50
 d. Launching a Multi- Stakeholder Platform (MSP)
To elevate compliance with the quality standards of Egyptian organic inputs, the establishment of a
multi-stakeholder platform (MSP) is recommended. In the irst place, this platform addresses the
challenge of the ineffective communication of
legislations within the Market. Establishing a
uni ied platform for Egyptian importers of
organic agriculture inputs and the governmental
entities ensures a coherent understanding of
regulations. This shared knowledge base
becomes instrumental in navigating the
regulatory landscape, fostering transparency, and
aligning all stakeholders toward the common goal
of promoting organic agriculture.

On the other hand, his platform would serve as a conduit for transferring knowledge and
technical expertise from the Netherlands to Egypt. One effective way to implement the MSP is to
establish a collaborative consortium comprising representatives from various key stakeholders in the
organic agriculture sector. This consortium can include individuals from government bodies,
regulatory agencies, agricultural institutions, private enterprises, and research organizations in both
Egypt and the Netherlands.

The agreement should allow for organizing bilateral ield visits to amplify the impact of the know-
how transfer and to facilitate the integration of international best practices into Egypt's organic
agriculture landscape. Furthermore, the platform could serve as an opportunity for the
establishment of fruitful partnerships among the involved parties. It could also support in curbing
the prevailing gaps and challenges through fostering transparency and actionizing the
recommended interventions61.

During one of the conducted meetings, the General Authority for Investments and Free Zones (GAFI)
expressed their interest in undertaking this initiative as the intermediary party coordinating the
various involved stakeholders. As such, the MSP in hand is suggested to combine:

- Key governmental entities governing this process namely, CLOA, GAFI, Agricultural Research
Institute.

61The roundtable discussion revealed how GAFI initiated efforts to foster the dialogue with the Ministry of Agriculture to
build a better understanding of the importing process.

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51
 - Leading Egyptian companies namely, Kafr Elzaiat, BioEgypt, Croplife, etc.
- Leading Dutch exporters such as Koppert.
- Lead farmers.
- Organic companies in Egypt.

*The speci ic selection of the entities to be involved can reference the list of participants interviewed and
attendees in the joint meeting and hybrid workshop.

e. Developing an interactive E-window

To curb the frequent changes in the regulatory framework, a key investment opportunity lies in
establishing an electronic window that displays the whole trade process, as shown in this study,
but in a more interactive and lexible way. It would allow for direct interaction between the key users
and the developers as well as being able to post their questions, network with similar entities and
build upon each other’s experiences. The platform will also serve as one up-to-date source of
information where the procedures are regularly updated, and all needed information is found in one
place. It would also build on the outcomes of the MSP gathering and brie ing meetings.

The platform could be hosted by the General Authority of Investment and Free zones as a
strategic intermediary entity linking all involved stakeholders together using their ownonline
platform that can host this initiative. The platform can be
divided according to the various agricultural products (i.e.,
dairy, meat, poultry, seeds, input supplies, etc.). It could also
cover all the needed information regarding the trade
process, steps, paperwork, estimated fees and timeline. It is
advised for the platform to provide a database of the
current market size, leading companies in Egypt, and types
of products with the highest demand. It could also display
useful features such as "Frequently asked questions”, a
tailored chatbot to answer questions, and statistics
dashboards.

This would require a lexible timeline catering for the research mapping process of all procedures
and phases required per product/sector, creating a user-friendly interface and piloting the irst
prototype of this product.

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52
For instance, if this is applied on the biofertilizers and biopesticides sector as a pilot for the
intervention, capitalizing on the information and data presented in this study, launching the
platform is expected to take from 3-5 months.

© Copyright Enroot 2024. All rights reserved.

53
 Figure 67: Investment opportuni es in Egypt
It would allow for direct interaction between the
key users and the developers as well as being able
to post their questions, network with similar
Bring together diverse stakeholders and various entities and build upon each other’s experiences.
expertise (i.e., government, exporters, importers, The platform will also serve as one up-to-date
sectoral experts, and lead farmers) as a steering source of information where the procedures are
committee to the envisioned interventions regularly updated, and all needed information is
curbing the identi ied challenges. found in one place.

Interac ve E-
Mul stakeholder
window
pla orm

Development
Opportuni es
in Egypt
Research and Local partnerships
Development
centers
Collaborating with local entities offers a
gateway to facilitating import procedures,
Partnering in R&D, especially in areas
navigating regulatory frameworks, and
that need enhancement in Egypt, such as
understanding the Egyptian market.
quality control, transportation logistics
These entities could act as valuable allies
and ef iciency measures, would not only
in overcoming bureaucratic challenges
enhance operational ef iciency but also
and ensuring a smooth entry into the
elevate overall product quality.
market.
Conclusion and
Way Forward

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55
The Egyptian market for biofertilizers and biopesticides presents a compelling opportunity for
Dutch investors, with potential for growth and development across multiple levels. At the macro
level, the commitment to cooperation between Egypt and the Netherlands provides a supportive
framework for investment. At the regulatory level, progress is being made to
accommodate biological production, with the adoption of the New Organic Agriculture Law and
the establishment of online platforms facilitating registration processes for Dutch companies.
Meanwhile, at the market level, there is increasing demand for organic farming and produce,
driving growth in the importance of biological products.

This report has provided a comprehensive overview of the Egyptian market for biological products,
as well as a practical guide for Dutch companies navigating the local regulatory environment.
The sector presents interesting business and development opportunities, particularly for
companies willing to establish local production lines to export to the Middle East and Africa. Dutch
companies can leverage Egypt's strategic location and recent currency devaluation to
increase the competitiveness of their goods in international markets. Strategic partnerships,
such as joint ventures or supplier agreements, are recommended and welcomed by local
companies.

The entry of Dutch companies into the market is expected to have a positive impact, driving
up product standards, competitiveness, and innovation. In addition to business opportunities, there
are also opportunities for development and collaboration, including partnering with local
entities, engaging in policymaking, establishing a multi-stakeholder platform, and transferring
R&D in the sector. These initiatives can help address the challenges facing the market and
complement the expected increase in investments over the coming years.

To support Dutch investment in Egypt, the Embassy of the Netherlands in Egypt is organizing a
matchmaking event during the 36th Edition of the International Agricultural Exhibition for Africa
and the Middle East (Sahara Expo) in September 2024. This event presents a unique opportunity
for Dutch companies to explore the sector and its investment potential. For further information or
to inquire about the event, please contact the embassy at [email protected].

© Copyright Enroot 2024. All rights reserved.

56
2
Annex

© Copyright Enroot 2024. All rights reserved.

57
Annex
Annex 1: Detailed Methodology
a. Secondary research
Secondary research (i.e., desk research) was crucial to understand key aspects of the Egyptian
economic landscape and organic agriculture sector in Egypt. The secondary research included
analyzing the bilateral trade relationship between Egypt and the Netherlands, the import procedures
and the regulatory framework governing biopesticides and biofertilizers. Secondary research was
also pivotal in identifying the key relevant stakeholders and their distinct roles. It also served as a key
approach in designing and planning the implementation phase, data collection process and the vital
validation phase, thereby ensuring a robust and well-informed market scan study.

Accordingly, the team capitalized on previous studies, research papers, and articles covering the same
scope of the study. This included, but was not limited to the following:

© Copyright Enroot 2024. All rights reserved.

58
II. Publications of the Ministry of Agriculture
and Land Reclamation.

III. Publications of General Organization for

Import and Export Council.

IV. Publications of General Authority of

Investment and Free zones (GAFI).

V. International Federation of Organic

Agriculture Movements (IFOAM)

VI. Research Institute of Organic Agriculture

(FiBL)

VII. Central Administration for Plant Quarantine

(CAPQ)

VIII. EU trade reports and situational analysis

studies.

IX. Publications of The Egyptian Journal of

Agricultural Economics.

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59
 X. Relevant laws and executive regulations.

XI. Nafeza – Egypt

XII. Observatory of Economic Complexity (OEC).

XIII. OECD library (FAO).

XIV. Data and statistical bulletins (i.e., Statista)

XV. Other relevant research papers and articles.

a. Primary research
Primary research was a key component in this research mission. It was crucial in obtaining and
gathering the missing pieces of information that were not available through secondary sources of
data. It also served to validate the obtained research indings. Primary research enabled the market
scan study to capture the insights and perceptions of the various stakeholders and parties involved
throughout the various procedures, as shown in Figure 1 below. It provided the study with a holistic
overview of the trade systems and regulatory framework governing the importing procedures of
biopesticides and biofertilizers, the prevailing barriers and challenges, and the key investment and
market opportunities.

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60
 Figure 71: Key stakeholders in biofer lizers and biopes cides sectors.

Governme
ntal
regulations

Egyptian Dutch
importers exporters

Sectoral Lead
experts farmers

Primary research consisted of 1) IDIs, 2) joint synergy meeting and 3) a hybrid validation
roundtable.

1. In-depth interviews (N=14)

A total of 14 IDIs were conducted with diverse stakeholders and key players in the biopesticides and
biofertilizers market, as shown in Table 1 below. A snowballing effect was evident as interviewed
stakeholders facilitated connections with additional relevant entities and representatives of these
sectors, thereby providing valuable insights for the market scan study.

Initially, conducting in-depth interviews (IDIs) was crucial to enrich our indings by gaining insights
into the overall landscape of the organic agriculture market in Egypt from both sectoral experts and
end users of organic inputs. Moreover, interviews with Egyptian importers shed light on the
challenges they encounter during the registration processes of biofertilizers and biopesticides, as
well as their limited awareness of the new legislations pertaining to the organic agriculture law.
Consequently, we supplemented this information by gathering details about the registration
processes under the organic agriculture law from government representatives.

Table 1: Sample split

Type of stakeholders Entities # 14

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61
 Ministry of Agriculture and Land Reclamation (MALR) 1

Governmental Central Laboratory of Organic Agriculture 1

representatives General Authority for Investment and Free Zones 2

Agriculture pesticide committee 1

Dutch Companies operating in the biofertilizers and biopesticides sectors 1

Egyptian Companies covering biofertilizers and biopesticides (i.e., Egyptian importers) 3

Lead farmers 1

Sectoral experts 4

2. Joint synergy meeting

A fundamental aspect of the adopted qualitative approach involved organizing a joint meeting that
brought together key entities namely, 1) the Embassy of the Kingdom of the Netherlands, 2) the
Ministry of Agriculture and Land Reclamation (MALR), 3) the Ministry of Trade and Industry,
4) the Ministry of Environment, and 4) the General Authority for Investments and Free Zones
(GAFI). The primary objective of this meeting was to foster bilateral connections, communication,
and synergies among all participating parties. Importantly, this meeting played a crucial role in
providing insights into the power dynamics between the various governmental stakeholders.

The meeting played a pivotal role in uncovering the current investment prospects within the Egyptian
market, thereby enriching the overall understanding of the market scan study. Additionally, it
highlighted the existing disconnection among the different governmental entities engaged in the
import process, validating the need for an intervention that fosters a constructive and holistic
dialogue among the various entities.

3. Hybrid validation roundtable

This mission was concluded by a hybrid validation workshop combining a set of the key stakeholders
governing this sector (i.e., governmental entities, sectoral experts, Dutch exporters joining from
abroad and Egyptian private businesses – see for the full participants list). The purpose of this
roundtable was to present and validate the market scan study and to delve deeper into the status quo

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of the organic input supplies in the Egyptian market. The discussions also delved into the public
policies, rules and regulations governing these sectors in Egypt in addition to key market challenges
and hindering factors (see for the lyer summarizing the main outcomes of the study).

The primary objective of this workshop was to provide a condensed overview of our study, facilitating
discussions that would validate the key indings through the input of the stakeholders. Additionally,
it served as a platform to gather new insights and perspectives that could enhance the richness of our
study. Through collaborative engagement, we aimed to af irm the credibility of our indings and
ensure alignment with the perspectives and expertise of the participating stakeholders.

Annex 2: Registration in Nafeza and CargoX

This chapter focuses on providing a detailed guide for the process of registration using ACID through
Nafeza and Cargo X system as a pivotal phase in importing and exporting to Egypt. Highlighting the
necessary steps for Nafeza and CargoX registration is pivotal since it became a mandatory step
governing international trade in Egypt regardless of the sector or traded product/service since 2021.

The information captured here were obtained from the conducted IDIs and the of icial websites of
Nafeza and CargoX62.

XVI. ACID System

The Advanced Cargo Information (ACI) system came into effect since October 2021 for all shipments
coming to Egypt. Nevertheless, there have been no announcements made regarding the application
of the mandatory registration of shipments coming to Egypt through airports, which was planned to
come into effect starting from January 2023.

It is worth noting that the Egyptian government is starting to implement the Advance Cargo
Information (ACI) declaration for air-borne cargo shipments soon. CargoX and the Government of
Egypt’s NAFEZA started testing the ACI Air declaration on 15th of May 2022. The process became
mandatory on 1st October 2022.

The ACI for air-borne cargo is the gateway to exporting products to Egypt by air. It allows you to pre-
lodge shipment documents and data electronically in a secure and prompt manner so that the

62 Nafeza platform: https://www.nafeza.gov.eg/ar

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customs and OGA procedures on the Egyptian side may be accomplished prior to shipment arrival at
the Egyptian airport.

For customers exporting to Egypt by air, this will become a uni ied channel. Exporters should save
effort, time and money, and reduce the risk of delays. The ACI system will expedite shipment
clearances, and it brings exporters one step closer to the digital trade inance platform upon which
Egypt is currently working.

Advance Cargo Information (ACI) needs cargo information or documentation (pro-forma invoice and
draft bill of lading, if applicable) at least 48 hours prior to the export country's cargo shipment. This
allows all relevant parties to monitor potential state risks through the Risk Management System
(RMS), with the safety of Egyptian nationals receiving top priority. This calls for the establishment of
two operational arms: exporters must register on the CargoX system, while Egyptian buyers must
register on NAFEZA, the National Single Window for Foreign Trade Facilitation system.

The two systems are interconnected using blockchain technology. With the use of blockchain
technology, an individual (or organization) can securely and independently send important papers
or data to another individual without the need for a middleman.

The following demonstrates the needed steps and phases of registering in Nafeza for the importers
and CargoX for the exporters.

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 Registra on on NAFEZA
Registration on NAFEZA is a mandatory step for the Egyptian local importers to be able to extract the
ACID number for each shipment and to communicate with the exporters as well63.

The registration steps are as follow:

1) The process of registration starts by selecting the type of account that suits the importer’s
activities, either personal or commercial.

2) Having chosen the account, the importer now must ill in some personal data (ex. name, date
of birth, and gender), and contact information (address, mobile and land line number,
country), as well as account data (username, email, password)

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For the importer to register, he/she will need to access the platform through the following website:

https://www.nafeza.gov.eg/en/register.

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 Registra on on NAFEZA

3) The inal step is to verify the email address to receive an ID to log in to the portal and bene it
from the packages of services available to users according to the type of account.

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 Registra on on CargoX
Registration on CargoX is a mandatory step for all foreign exporters. For the exporter to register,
he/she will need to access the platform through the following website: https://cargox.digital/login.

The registration steps are as follow:

1) Create a free account on CargoX and then click I want to register a new company.

2) The next step is illing the required information regarding the company as follows:

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Registra on on CargoX

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Registra on on CargoX

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 Registra on on CargoX
Account veri ication
Having created an account for the company, the next step is to become veri ied, this requires three
actions:

 Create a company pro ile: this step is already done.

 Buy credit via bank transfer: this requires paying veri ication fees by transferring through the
company’s bank account.
 Lastly the system should now verify your data. This step can take up to 10 days (pending the
money transfer)
Note: there is a help button where you can communicate customer service through
message chatting or email which is the fastest way.

Composing and sending ACI iling

Now it is time to use ACI number sent by the importer to compose an envelope with the shipment
documents and send it through CargoX to the importer.

 First, click compose and then choose Egypt ACI envelope.

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 Registra on on CargoX

A new envelope window would appear where the applicant can click upload and choose from your
device the required documents (invoice PDF and/or Nafeza-speci ied Excel, bill of lading copy,
packing list, certi icate of origin, other documents) to be uploaded and sent to the importer.

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 Registra on on CargoX

Once the ACI number is received from the Egyptian buyer, (which they will get from Nafeza after
they register import shipment), you will use the CargoX Platform to electronically submit the
required ACI documents to Egyptian customs.

Now what?

 The importer is required to plug in the shipment data in the customs system (i.e., ACI).
 The shipment identi ication number (ACID) is accordingly generated by the customs authority
within 48 hours. Both importer and exporter are noti ied with the ACID number.
 From the exporter’s side, the exporter must electronically transmit the shipment documentation
and data, while refering to the ACID in all documentation.
 From the importer’s side, the importers must certify and acknowledge that all data sent by the
exporter are correct.
 following this, the vessel is loaded with the shipment and departs from the exporting country to
the importing country where the importer needs to pay import taxes and fees.
 After the shipment is of loaded in the importing country, a joint committee at Egyptian port
inspects the compliance of shipment, referencing the shipment documents.

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 Registra on on CargoX
For an imported shipment to be accepted by the Egyptian customs authority, the shipment must
have the following documents:

Table 2: List of shipment documents

Document Description
Commercial Invoice (i.e., Legalization by the Egyptian consulate in the country of origin is
Two copies plus the original required in most cases.
document)
Must be authenticated by the Egyptian Consulate in the country

Certi icate of Origin (i.e., of origin. Also, must bear the statement that the information

Two copies plus the original given is true and correct to the best of the shipper’s knowledge.

document) Note that natural products are considered to originate in the

country where the goods are extracted.

Packing List May be required by the consignee and is recommended in most

cases.
Must show:
Bill of Lading - Name of the shipper
- The address
- The number of bills of lading issued.
Pro Forma Invoice Must show the country where the imported goods were
manufactured.

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Annex 3: List of Roundtable attendees

Roundtable
participants.xlsx

Annex 4: Summary lyer

Roundtable
brochure.pdf

Annex 5: Importer’s registration form

Importer
registration form.pdf

Annex 6: Organic input’s registration form

Organic input
registration form.pdf

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