Once known for their resilience, Egypt’s olive trees now face significant challenges due to climate change. Warmer winters have disrupted their growth, leading to an 80% drop in production in 2021. This is a concerning development for a country that was one of the world’s largest table olive exporters, contributing nearly a quarter of the global supply in the 2019-2020 season.
This decline in olive production highlights broader agricultural issues caused by climate change, which has introduced increasing risks. Egypt ranks 24th globally in vulnerability to natural disasters, facing threats like floods, sandstorms, rising sea levels, and droughts. The Nile Delta, an essential agricultural region home to 18 million people, is particularly at risk of flooding.
To mitigate these challenges, the United Nations Development Programme (UNDP), through its Insurance and Risk Financing Facility, is working to provide financial protection against rising climate risks in Egypt. In collaboration with the Financial Regulatory Authority (FRA), UNDP is promoting Inclusive Insurance & Disaster Risk Financing initiatives to safeguard Egyptian farmers and their crops.
A diagnostic study titled “Inclusive Insurance and Risk Financing in Egypt” outlines the country’s key risks, the current insurance landscape, and provides recommendations to enhance these tools for development and economic growth. The focus is on making affordable, accessible insurance products available to meet the actual needs of farmers and communities facing climate threats.
Egypt’s new insurance law includes provisions for inclusive insurance, with a particular emphasis on microinsurance. While disaster response in Egypt has relied on budget reallocations and aid, a formal disaster risk financing strategy is still in development. The introduction of agricultural insurance and a comprehensive disaster risk finance strategy will be critical to offering farmers protection from climate-induced risks.
Progress is already underway, as the new insurance law addresses threats like droughts and pests. However, gaps remain in areas such as soil deterioration and storage losses. UNDP, in collaboration with government agencies, the private sector, academia, and international organizations, is working to develop a more resilient agricultural sector.
The story of Egypt’s once-resilient olive trees serves as a reminder of the urgent need for international action to build a sustainable future. As part of Disaster Risk Reduction Day, UNDP reaffirms its commitment to strengthening resilience against climate change, promoting inclusive insurance solutions, and advancing comprehensive risk financing strategies to secure the livelihoods of farmers and the sustainability of Egypt’s agricultural sector.
