Egypt continues to face significant water resource challenges, with decreasing water availability per capita and high dependence on the Nile River. Water pollution is also a concern resulting from excess nitrogen application, while soil quality challenges are related to salinity and nutrient imbalances. Policy efforts are focused on irrigation infrastructure and expanding non-conventional water sources. There is scope for reducing fertiliser use, reforming subsidy schemes, and reducing water demand by empowering farmers and water users’ associations.
Policies for the Future of Farming and Food in Egypt
4. Sustainable management of Egypt’s natural resources for agriculture
Copy link to 4. Sustainable management of Egypt’s natural resources for agricultureAbstract
Key messages
Copy link to Key messagesEgypt faces several important natural resource challenges, including decreased water availability per capita, water pollution as a result of excess nitrogen application, as well as soil quality challenges related to salinity and nutrient imbalances. Rising population, changing diets, and climate change are likely to further increase pressure on natural resources over the coming decades.
The government has developed several water-related strategies. Updating water-related strategic documents such that they fully align with other strategic documents (e.g. the updated Nationally Determined Contribution, Egypt’s Vision 2030 and goals set out within Egypt’s Nexus of Water, Food and Energy Programme) and improving the ease of access of such documents would improve policy coherence and help facilitate communication and inter-stakeholder co-ordination.
Egypt’s water strategy has a strong emphasis on investments in public irrigation infrastructure and modernisation of on-farm irrigation systems, in combination with regulatory instruments limiting the cultivation of certain water-intensive crops (e.g. rice). The current approach could be improved with additional emphasis on the use of economic instruments and incentives. Efforts to improve water efficiency should be backed by overall water demand reduction efforts to be sustainable.
Salinity already affects 35% of agricultural lands, with higher shares in the lower delta, and this proportion is likely to increase as a result of sea level rise. Investments in improved drainage, best agronomic practices and the promotion of salt-tolerant crops and varieties constitute important solutions to address the salinity challenge.
Egypt has very high nitrogen application rates, with a correspondingly large nitrogen surplus, while displaying a negative phosphorus and potassium balance. The high rates of nitrogen application contribute to challenges related to soil degradation, water quality, and agricultural productivity.
Despite a strong legal framework related to pesticides, compliance and implementation gaps remain and pesticide contamination remains a challenge for water quality and international market access. The Egyptian government is already taking several important steps in this direction.
Water User Associations could play a more important role in water management, serving as a link between higher-level policies and the end users of water. These institutional structures are critical to boost co-operation among water users to promote reductions in water consumption. However, this would require further strengthening these organisations, including through additional financial support and capacity building.
4.1. Main agri-environmental challenges in Egypt
Copy link to 4.1. Main agri-environmental challenges in EgyptEgypt faces significant environmental challenges, including natural resource constraints related to its land and water resources as well as climate change (Chapter 1). There are on-going policies and initiatives aimed at overcoming environmental pressures, including large-scale investments in irrigation infrastructure. Addressing these challenges appropriately is crucial for the long-term sustainability of the agricultural sector and to ensure food security.
Water availability per capita is declining, while agricultural land is growing despite pressures
Competition for scarce land and water resources and population growth have led to declines in the per capita availability of arable land and water, with water availability fast approaching levels of absolute water scarcity (FAO, 2025[1]; FAO, 2016[2]). The total quantity of agricultural land has increased as a result of land reclamation but land availability per capita has declined, by approximately 22% between 1990 and 2023 due to population growth. The potential for further agricultural land expansion is constrained by the presence of the desert and limited availability of water and fertile agricultural land, the latter mostly concentrated in specific areas of the country (mostly in the Nile Valley and Delta and in certain oases). Decreases in per capita water availability have been even more severe and estimated at 48% (from 985 to 511 m3/inhabitant/year) between 1990 and 2022 (FAO, 2025[1]), with the most recent estimated level now fast approaching 500 m3/inhabitant/year, a threshold often used to define absolute water scarcity (Liu et al., 2024[3]; OECD, 2024[4]).
Figure 4.1. Land and water availability per capita, 1990‑2022
Copy link to Figure 4.1. Land and water availability per capita, 1990‑2022
Note: Total renewable water resources per capita are taken from Aquastat. Total agricultural land is obtained from FAOSTAT, Agricultural land per capita is calculated by dividing total agricultural land (from FAOSTAT) by population (World Bank WDI).
Competition for land and its scarcity have put enormous pressure on both the quality and quantity of agricultural land. Urbanisation, alongside challenges in the implementation of legislation aimed at protecting fertile land from urbanisation, has led to a decline of high-quality agricultural land (“old lands”) (Mohamed and Sims, 2020[7]). The quantity of lower quality and potentially less productive agricultural land (“new lands”), however, has increased, especially around the Nile valley and the Delta (UN-Habitat, 2023[8]). Urban growth modelling conducted by the World Bank projects an additional 25 124 ha of agricultural land will be lost by 2030 due to continued urban expansion (World Bank, 2022[9]). At the same time, new lands were reclaimed at an average rate of 110 653 ha/year over the five years from 2018/19 to 2022/23 (Chapter 2) (CAPMAS, 2024[10]).
Excessive nitrogen application and salinity are affecting the quality of soil and water
National-level nutrient budgets have highlighted persistent nutrient imbalances, with consistently high and increasing nitrogen surpluses (at 201 kg/ha1 for 2022) alongside deficits in phosphorus and potassium. This is consistent with surveys highlighting excess application of nitrogen fertiliser (Kurdi et al., 2020[11]) (despite increases in the subsidised fertiliser price), and site-specific observations of reduced availability of phosphorus and/or potassium (Gaballah, Mansour and Nofal, 2020[12]; Abdelaty, Abd-El-Hady and Shehata, 2023[13]). Soil quality is further hampered by salinity levels, an issue which affects an estimated 23‑35% of agricultural land in Egypt (FAO, 2025[1]); (Kotb et al., 2000[14]; Bruning and de Vos, 2022[15]). High salinity levels result from several factors including seawater intrusion and irrigation with reused water (Mohamed, 2017[16]). While estimates of the share of land affected by salinity diverge, the extent is considered to be large and have yield implications (Caon et al., 2019[17]; Fadl et al., 2023[18]).
The excessive application of nitrogen fertilisers combined with the reuse of wastewater or drainage water with poor quality creates issues related to soil quality. In addition, large nutrient surpluses contribute to water pollution and the application of pesticides also increases the risk of degraded water quality. While previous OECD reports have highlighted an overall decrease in the levels of pollution in the Nile river as a result of increased industrial wastewater control, improved wastewater management capacity, and stronger focus on pollution control (OECD, 2024[4]), large nutrient surpluses pose a risk in terms of water quality. National water quality indicators for phosphorus and nitrogen do not exceed the maximum limits allowed for the Governorates that report data (2 for phosphorus and 3 for nitrogen) (CAPMAS, 2023[19]), but individual studies have documented site-specific contamination of water in groundwater wells and irrigation canals (Redwan et al., 2020[20]; El-Sayed, 2018[21]; Fouad et al., 2024[22]). A study has also found site-specific pesticide concentration exceeding standard guidelines of WHO (Dahshan et al., 2016[23]). A second aspect is that water scarcity has led to reuse of agricultural drainage water, often mixed with treated or untreated wastewater (Tawfik et al., 2024[24]). While such reuse allows more land to be irrigated at low cost and has potentially high economic value, drainage water can pose environmental risks, due to higher content of salts and agro-chemical pollutants (Arab Water Council, 2024[25]).
Continued population growth, dietary shifts and climate change are projected to put additional pressure on natural resources
Egypt has been undertaking water efficiency investments in some areas, with increases in irrigated water use efficiency over the last 30 years and the share of treated wastewater (from 50% in 2015 to 74% in 2022). At the same time, several factors are likely to increase the pressure on land and water resources in the future. Population is expected to reach 160 million in 2050 and these increases alongside shifts in consumption patterns are expected to further increase strains on already scarce water resources (Terwisscha van Scheltinga et al., 2021[26]). Climate change is expected to result in rising sea levels, with corresponding increases in sea water intrusion and coastal erosion, which are likely to increase the threat posed by soil salinity (Gado and El-Agha, 2021[27]).
Scarce water availability combined with a high reliance on the Nile River for over 90% of the supply of freshwater make Egypt vulnerable to upstream developments. Egypt perceives the filling of the Grand Ethiopian Renaissance Dam (GERD) as a threat to its water supply (El Ahram, 2025[28]; El Ahram, 2025[29]) and a large expansion of irrigation in Sudan could reduce the flow of the Nile for downstream countries (Basheer et al., 2024[30]). Importantly, beyond its possible impact on water availability, a reduced flow of the Nile river would also affect its dilution properties, potentially compounding water quality issues (Abdel-Satar, Ali and Goher, 2017[31]). Effective co-operation among the Nile Riparian countries is essential, but despite over a decade in negotiations the involved parties have not been able to reach an agreement amenable to all countries. The latest Cooperative Framework Agreement, signed in 2024, has not been ratified by Egypt or Sudan (The New Arab, 2024[32]).
4.2. Overview of Egypt’s agricultural water resources (water quantity)
Copy link to 4.2. Overview of Egypt’s agricultural water resources (water quantity)Water demand substantially exceeds renewable water supply in Egypt
Water demand is estimated at 114 billion cubic metres (BCM) per year, whereas according to Egypt’s Water Strategy 2050, available freshwater resources are estimated at 59.25 BCM per year (GoE, 2023[33]). This implies an imbalance between demand and supply of water in Egypt, with water demand exceeding water supply by approximately 91%. The imbalance between water demand and supply is covered by imports of commodities (with a “virtual water trade”2 estimated at approximately 30 BCM) and the remaining amount (about 21 BCM) is covered by water from unconventional sources, such as reuse of agricultural drainage and treated wastewater. As a result, recent studies have found depletion occurring in several aquifers in the country (Shalby et al., 2023[34]).
Increasing imports of agricultural commodities have been a way to cover the imbalance between demand and supply of water-dependent commodities (e.g. wheat, maize and soybean). The fast population growth is clearly a key determinant of this trend, exacerbated by very concentrated dietary patterns in Egypt incentivised by domestic food subsidies (Chapter 3). Despite efforts undertaken, these factors have constrained the ability of the government to reduce and diversify its imports.
Unconventional sources such as reuse of drainage water are expanding
The main water source in the country is the Nile River, which represents over 97.7% of the total annual renewable water supply. Unconventional sources like reused water are playing an increasing role to help Egypt meet demand. According to Egypt’s Water Strategy 2050, the total annual supply of freshwater amounts to 59.68 BCM from four main sources, namely the Nile River (55.5 BCM, 93%), groundwater (2.5 BCM, 4.2%), rainwater (1.3 BCM, 2.2%) and desalination (0.38 BCM, 0.6%) (MWRI, 2016[35]). To meet water demand in the agricultural sector, reuse of drainage water in the Delta has been adopted as a policy by the Egyptian government since the late 1970s (Rady and El-Din Omar, 2018[36]). The reuse of treated agricultural wastewater currently amounts to an estimated 21.95 BCM (CAPMAS, 2025[37]). As a result, unconventional sources (such as re-use of drainage water3) play an important role in helping Egypt meet the demand for water and currently amount to 38.6% of total annual renewable water supply, effectively making unconventional water sources the second largest water source in the country.
Agriculture in Lower Egypt accounts for the majority of irrigation water use
The agriculture sector accounts for 76% of total water use in Egypt (Figure 4.2) (CAPMAS, 2025[37]). Given the arid and hyper-arid climatic conditions in Egypt, characterised by very low levels of rainfall, the overwhelming majority of agricultural land is irrigated, with less than 2% of Egypt’s agricultural land being rain-fed (Kassim et al., 2018[38]). Water for irrigation therefore represents the main source of water demand, with the demand being unevenly distributed both in geographic terms and by crop. In terms of geographical distribution, the majority of irrigation water use (61% in 2023) occurs in lower Egypt (Figure 4.3). The main four crops (wheat, maize, sugarcane, and rice) account for a very large proportion of water requirements for irrigation of crops.
In terms of irrigation method, Egypt still relies predominantly on flood irrigation which is used in about 82% of agricultural lands. Drip irrigation is used in about 10% and sprinkler irrigation is used in about 8% of agricultural lands (Atta et al., 2022[39]). In this context, the Egyptian government has had a strong focus on improving irrigation efficiency. More recent estimates from MALR indicate that modern irrigation systems (including sprinkler and drip irrigation) reached about 26% of the total cultivated area in 2024/25.
Figure 4.2. Water use by sector, 2023/24
Copy link to Figure 4.2. Water use by sector, 2023/24
Notes: BCM: Billion cubic metres. The above figure refers to the uses of water resources by sector for the year 2023/24. The category “drinking water” is assumed to refer to water consumed by households.
Source: CAPMAS (2025[37]).
Figure 4.3. Quantity of used irrigation water by geographic subdivisions
Copy link to Figure 4.3. Quantity of used irrigation water by geographic subdivisions
Note: BCM: Billion cubic metres. Includes used irrigation water for three cropping seasons (winter, summer and Nile) and fruit production.
Source: (CAPMAS, 2025[40]).
Water efficiency in agriculture, measured as production value per volume of water (USD/m3), has increased over time to a large extent as a result of irrigation modernisation, shifts to higher value-added crops, and public investments in irrigation and R&D. It has doubled between 2000 and 2022, but remains below that of certain regional peers (e.g. Jordan and Lebanon) (Figure 4.4) (FAO and UN-Water, 2024[41]). Several studies attribute output growth to a combination of better technology, switches to more profitable crops, and input intensification, while highlighting the importance of public investments to maintain this trend (Fuglie et al., 2020[42]).
The Ministry of Water Resources and Irrigation (MWRI) has been investing significantly to reduce the gap between water demand and supply. Its vision for the future entitled “second-generation Irrigation System 2.0” includes eight axes of action, such as large-scale investments in infrastructure (e.g. 7 000 km of canals were rehabilitated in recent years and several large drainage water treatment projects were completed), as well as supporting irrigation modernisation and implementing water purification activities along the 22 000 km of drainage networks.
Figure 4.4. Irrigated agriculture water use efficiency in Egypt and selected countries
Copy link to Figure 4.4. Irrigated agriculture water use efficiency in Egypt and selected countriesUrban water demand is projected to increase and further pressure will be exerted on water resources from the Nile
In the future, rising urban demand for water, shifting land usage, and the effects of climate change are expected to put additional pressure on Egypt's already scarce water supplies. Using a modelling approach, Esraa et al. (2023[43]) forecasts water demand (apart from virtual water) to increase from 78.40 BCM in 2023 to 81.02 BCM in 2037. However, given projected population increases, the forecast anticipates an increase in residential and industrial water uses, which implies that agriculture would need to reduce the level of water use by approximately 1 BCM. Increases in temperature can also threaten the water supply. It is estimated that rising temperatures could increase evapotranspiration losses by over 5% and that canal rehabilitation would be an important way to overcome the reduced water availability (Badr et al., 2023[44]).
The reliance on the Nile as the main source of renewable water also makes Egypt vulnerable to upstream developments. Basheer et al. (2024[30]) analyse the impact of expanding irrigation in Sudan by 1 million hectares, and note that the combined effect of the irrigation expansion and the Grand Ethiopian Renaissance Dam (GERD) could lead to a reduction in downstream flows by an estimated 0.2 to 7.2 BCM during 2030‑2050 (Basheer et al., 2024[30]). Finally, the presence of two very large reservoirs relative to the yearly flow of the Nile (i.e. Lake Nasser and GERD) poses a very large challenge in terms of resource management. This makes effective co-operation between countries along the Nile essential. However, no co-operation agreement amenable to all countries has been reached so far (The New Arab, 2024[32]).
4.3. Soil salinity
Copy link to 4.3. Soil salinityHigh levels of soil salinity are driven by use of shallow groundwater for irrigation and sea water intrusion
Egypt is one of the countries in the world most affected by salinity, which poses an important challenge which is likely to grow in the future. The issue of salinity in Egypt is not new, with early surveys in the mid-1970s revealing that 20‑25% of soils in Upper Egypt, the Upper Delta and Middle Delta were affected by salinity, with this proportion increasing to 60% in the lower Delta (Sharma, 2023[45]). These numbers are also broadly in line with more recent inventories and studies in the mid-1990s which concluded that 35% of Egypt’s agricultural lands suffer from salinity, with electrical conductivity (ECe) above 4 dS/m (deciSiemens per metre), a common threshold for moderate salinity. According to Mohammed (2017[16]), the three main causes for salinity in Egypt are irrigation with low quality water, shallow water table and waterlogging, and seawater intrusion. Overapplication of fertiliser (especially nitrogenous fertiliser) can also contribute to salinity as they release soluble salts into the soil and therefore have the potential to directly contribute to soil salinity. In the future, it is expected that climate change induced sea level rise could lead to further sea water intrusion in coastal areas. As a result, Lower Egypt, in particular, is more prone to salinity problems.
There are technical solutions, but these are often subject to difficult trade-offs
The potential solutions to farm in saline soils will require a mix of improved practices and further investment in irrigation and drainage systems. There are several ways to either reduce salinity of soils or adapt to higher levels of salinity. Good agricultural drainage is critical to address salinity, with sub-surface drainage being an effective technique to control salinity (Sharma, 2023[45]). A second aspect would be to limit the use of groundwater close to the sea, in order to prevent the intrusion of saline sea water in coastal aquifers. Salinity management practices in irrigated agriculture include adding organic matter, applying soil amendments, and, in specific contexts such as Türkiye’s coastal plain of Adana, planting trees on small dykes with drip irrigation to reduce salt accumulation. Finally, there is scope to switch towards more salt-tolerant varieties or crops that are altogether more salt tolerant. However, doing so will have to consider not only the crop’s tolerance to salinity, but a combination of their tolerance to different kinds of stresses (e.g. salinity, heat, water).
In some cases, there may be trade-offs between the reduction of salinity levels and the decrease in on-farm water consumption. Appropriate drainage and the use of drip irrigation in new lands are likely to remain important elements to reconcile salinity management and water efficiency goals, but different solutions will need to be used in old lands. Rice is often used in Egypt as a reclamation crop in saline soils (Michalscheck et al., 2025[46]). Cultivating a water-intensive crop like rice in some areas allows to lower the salt content of the soil and is widely seen as a very effective biological strategy to reduce salt content of the land, but at the expense of increased water intensity (Peng et al., 2025[47]). Careful management of these trade-offs or opting for reclamation strategies of saline land that are less water-intensive will be an important aspect to consider in the future.
4.4. Overuse of fertilisers and pesticides
Copy link to 4.4. Overuse of fertilisers and pesticidesHigh and unbalanced application reduces fertiliser use efficiency and has impacts on water quality
Egypt has one of the highest uses of fertiliser per hectare worldwide and nitrogen balances have increased over time, while nitrogen use efficiency has decreased (OECD, 2024[4]). MALR is currently working to expand organic farming to reduce the use of nitrogen fertiliser. However, fertiliser application per hectare still remains over three times the OECD average (OECD, 2024[4]), and several-fold higher than the MENA average. Despite intensive cultivation with up to three cropping seasons per year in many places in Egypt, nitrogen surpluses are above 200 kg/ha, higher than the OECD median of about 50 kg/ha (OECD, 2025[48]). Excess nitrogen application occurs alongside deficits in the application of other key nutrients, especially phosphorus. The phosphorus and potassium balance are consistently negative, with the phosphorus deficit increasing over time (Figure 4.5).
The consistently high rate of application per hectare, combined with land expansion and a declining nitrogen use efficiency essentially means that the losses of nitrogen to the environment have increased over time, with potential consequences on water quality. Survey data clearly highlights that there is excess application of nitrogen fertiliser vis-à-vis the recommendations from government bodies and that this is partially due to the fact that nitrogen fertiliser is subsidised (Kurdi et al., 2020[11]). Nitrogen Use Efficiency (NUE) has decreased over time, leading to declines in soil fertility. Several factors have contributed to the decrease in NUE over time: the unbalanced application of different nutrients (excessive nitrogen, insufficient phosphorous and potassium), and the lack of knowledge about soil fertility at the farm level, including the persistent belief that increased fertiliser use necessarily leads to higher plant growth (Elrys et al., 2019[49]).
Figure 4.5. Cropland nutrient balance per hectare and nitrogen use efficiency
Copy link to Figure 4.5. Cropland nutrient balance per hectare and nitrogen use efficiency
Note: Crop nutrient balance is given by the difference between total nutrient outputs and total nutrient inputs. Nutrient use efficiency is the ratio of total output and input.
Source: FAOSTAT (2025[50]).
Water quality indicators met most national standards in 2021, and Egypt has improved the capacity to monitor water quality (OECD, 2024[4]). Water quality has also improved due to better control of industrial wastewater and wastewater management. However, several Governorates do not report nitrogen and phosphorus concentrations (CAPMAS, 2023[19]). Recent studies have shown that the levels of water pollution display substantial variation geographically and by water source. Analyses of groundwater in Northeast Cairo and Sohag have shown levels of nitrate concentration in excess of WHO drinking limits for some wells, especially in Northeast Cairo (Redwan et al., 2020[20]; El-Sayed, 2018[21]). Excessive contamination levels in irrigation canals in Fayoum have also been reported (Fouad et al., 2024[22]). With regards to Nile water, recent studies indicate an improvement in water quality (which they partially attribute to better water treatment) and find concentration levels below drinking water limit thresholds and nitrate concentration levels below typical eutrophication thresholds, while noting high variation in water quality, with water quality indicators typically being lower in monitoring stations around greater Cairo (Hegab et al., 2025[51]).
Reducing levels of applied fertilisers, ensuring more diverse application of different fertilisers, and improving Nutrient Use Efficiency are therefore important elements to reduce nitrogen surpluses. The sheer size of the nitrogen surpluses and the results of farm-level surveys provide evidence of the discrepancies between applied amounts and crop-specific technical recommendations and highlight scope to reduce nitrogen fertiliser application. Important elements for doing so include the alignment of economic incentives (such as subsidies) with agronomic best practices, improving the knowledge of farmers regarding fertiliser application best practices, as well as providing site-specific fertiliser strategies. Importantly, reducing the excess application of fertilisers could also lead to substantial mitigation co-benefits (through GHG reductions), as well as public and private savings.
High use of pesticides and counterfeit sales
The use of pesticides in Egypt has increased between the mid-1990s and 2023. According to FAOSTAT data, following a sharp decline in the early 1990s as a result of shift towards integrated pest management (El-Husseini, El-Heneidy and Awadallah, 2018[52]) and a phasing out of pesticide subsidies (Kassim et al., 2018[38]), pesticide application per hectare and total quantities of pesticide used have increased substantially since the mid-1990s (FAOSTAT, 2025[53]). The expansion of production of horticultural products and the intensive agriculture practiced as a result of existing land constraints, as well as the increased prevalence of certain crop pests due to climate change, have been driving factors of increased pesticide use in Egypt. MALR is currently implementing measures to expand integrated pest management practices and to develop new crop varieties that are both resilient to climate change and resistant to agricultural pests.
Figure 4.6. Pesticide use, 1990‑2023
Copy link to Figure 4.6. Pesticide use, 1990‑2023
Note: FAOSTAT data from 2015 onwards is either imputed or estimated.
Source: FAOSTAT (2025[53]).
Egypt has strict rules regarding how pesticides can be registered and also has Maximum Residue Levels (MRLs) to prevent the overuse of pesticides. The Ministry of Agriculture and Land Reclamation (MALR) and the Agricultural Pesticide Committee (APC) are the main regulatory bodies for pesticides in Egypt, with the MALR being the main regulatory body, and the APC the enforcement agency (El Safoury, 2020[54]). As highlighted by El Safoury (2020[54]), Egypt has a strong legislative structure related to pesticides with several laws and decrees covering the registration, handling and use of pesticides.
Despite a strong legislative framework, in practice, there are several implementation gaps related to the sale and use of pesticides, with negative environmental impacts. Illegal pesticides are a global issue, with the global trade in illegal pesticides estimated at USD 6‑10 billion (Frezal and Garsous, 2020[55]). In Egypt, industry actors estimated that counterfeit pesticides could account for one fifth of the total pesticide market in 2019 (Agronews, 2019[56]). The issue of illegal pesticides combined with its overapplication has led to several instances where pesticide residues have been found to exceed MRLs or, in the case of exports, contain traces of pesticides not allowed by trade partners. The European Union’s European Food Safety Agency highlighted that samples of imported oranges and grape leaves from Egypt were found to contain traces of a pesticide (chlorpyrifos) that is neither allowed in the EU nor in Egypt (Carrasco Cabrera et al., 2024[57]). A recent study focusing on 4 200 samples of horticultural products from 20 different markets in Egypt has also found that 42% of samples contained pesticide residues, with 13% of the samples exceeding MRLs (Malhat et al., 2024[58]). Beyond the risk to human health, there is evidence of pesticides being found in water samples. A study that sampled water quality in the Rosetta Branch of the Nile River found over 75% of samples being contaminated. While levels found were not considered a risk for human health, they could pose ecological risks to aquatic organisms (Eissa, Al-Sisi and Ghanem, 2021[59]).
Tackling issues related to pesticides will require stricter enforcement of existing legislation, training, and technological solutions. Egypt is already undertaking some of these actions, namely through the training of over 25 000 certified pesticide applicators, whose role would be to monitor pesticide use in agricultural lands (Food Business Middle East and Africa, 2024[60]). The existence of a large number of certified pesticide applicators can help reduce the risk of counterfeit pesticides. Expanding the adoption of Integrated Pest Management practices could also reduce the need for pesticides.
4.5. Agricultural water management policies and governance in Egypt
Copy link to 4.5. Agricultural water management policies and governance in EgyptOverall vision and strategic approach to water management
Egypt has a long tradition of policies aimed at reducing the imbalance between water supply and demand, which have culminated in the most recent water strategy 2050 (MWRI, 2016[35]). However, since then there have been several new programmatic and strategic documents (e.g. Egypt’s Vision 2030, the Nexus of Water, Food and Energy programme, the 2030 Updated Sustainable Agricultural Development Strategy, National Climate Change Strategy 2050) which also focus on water without an update of the sectoral policies.
Water for irrigation is used by Egyptian farmers free of charge, except for the pumping costs. Since 1975 MWRI has played the role of balancing supply and demand for water through the “National Water Resources Plans” that assess the current and future availability and demand for water (Kassim et al., 2018[38]). This exercise led to a broader Water Master Plan in 1981 with a time horizon until 2000 with the goals of preparing inventories of water resources, assessing current and future water needs and availability, as well as assessing trade-offs between multiple water uses and solutions to improve efficiency. A subsequent strategy was developed since 2005, entitled “Water Resources Strategy of Egypt Until 2017” with a primary goal of obtaining an additional 10.3 BCM of water (including 3.1 BCM of deep groundwater) to cover the foreseen increase in water needs from land reclamation initiatives until 2017. This was to be achieved by decreasing cultivated areas for water intensive crops (e.g. rice and sugarcane), increasing the use of groundwater, and recycling agricultural drainage water. This first “National Water Resources Plan” was developed by MWRI to guide public and private actions for ensuring the optimum development and management of water that benefits both individuals and society at large, and to promote the sustainable development and management of water resources. This plan was founded on the principles of integrated water resources management as defined in the Strategy.
More recently in 2016, MWRI developed a new “Water Resources Development and Management Strategy until 2050” (Water Strategy 2050) (MWRI, 2016[35]). Egypt’s Water Strategy 2050 seeks to achieve water security through the implementation of sustainable management of water resources in the long-term. Doing so successfully will entail both the development of Egypt’s scarce water resources, as well as the management of both present and future water demands.
The strategy is based on four main pillars, which include improving water quality, rationalising water use, enhancing the availability of freshwater resources, and improving the enabling environment for integrated water resource management, planning and implementation. The four pillars are seen as fundamental to address short- and long-term needs of the various sectors in terms of water resources. On the supply side, the strategy has a strong focus on further developing water resources, both traditional and non-traditional, including (a) the Nile River, (b) groundwater, (c) rain and floodwater harvesting and protection, (d) reusing agricultural wastewater, (e) reusing treated wastewater, and (f) desalinating seawater and brackish water. In addition to domestic water sources, the strategy also foresees imports through “virtual water trade” and agriculture production beyond Egypt’s borders as a way to decrease the water supply constraint. On the demand side, the strategy focuses very much on technical solutions for increasing water efficiency, with the goal of optimising water returns in the most water-consuming sectors, including agriculture, industry, drinking water, and household water. In terms of water quality, the focus is on pollution control in an integrated water resource management system.
The second update of Egypt’s Nationally Determined Contributions (NDCs) submitted to the UNFCCC in June 2023 identifies water as a top adaptation priority (GoE, 2023[33]). It is stated to be aligned with the National Water Resources Plan 2037 and the Water Strategy 2050. The following adaptation measures are included: modernising irrigation systems, expanding drainage and treated wastewater, protecting coastal groundwater from salinisation, promoting water-saving crops and resilient agricultural practices, and scaling up desalination powered by renewables.
These broad water management strategies are useful to co-ordinate the efforts of all actors in the system and to guide the decisions of farmers, investors and other players. Making these strategies and publications more easily accessible is critical to ensure that all parties feel part of the strategy and make decisions to contribute to its achievements.
Institutional co-ordination among ministries can be challenging
The legal framework related to water management in Egypt includes several laws on irrigation, water quality and drainage. Law 147/2021, which replaced Law 12/1984, provides the legal framework that covers irrigation, distribution and drainage management while Law 213/1994 and its by-laws are the basis for the management of infrastructure projects for covered drainage and the engagement of water user associations. In addition to these, there are several laws and decrees related to environmental protection that have implications for water management (Rady and El-Din Omar, 2018[36]). These include Law 93/1962 (and its 1962, 1982 and 1989 amendments) on discharges into open streams, Law 27/1978 which focuses on regulation of water resources and water treatment, as well as Law 48/1982 which focuses on protection of the Nile and its waterways from pollution. Finally, Laws 4/1994 and 9/2009 focus on environmental protection.
MWRI plays a central role in managing Egypt’s water resources. While MALR is responsible for agriculture and land reclamation, MWRI oversees water resources and related policies, supervising, managing, and preserving the state’s water assets in accordance with Law 147/2021. Key responsibilities of MWRI include developing a clear vision for the water sector, planning and maintaining water infrastructure such as canals and drainage treatment facilities, and supporting the modernisation of irrigation and water distribution systems.
At the central level, water distribution relies on effective co-ordination between ministries to ensure an effective allocation of water resources. Interministerial co-ordination plays a central role in co-ordinating water distribution in Egypt. MALR is responsible for defining recommended cropping patterns and calendars based on farmers’ crop choices. MWRI is then responsible for releasing the water to ensure sufficient quantities of water are provided to meet the needs of farmers. The volume of water discharged is therefore predominantly influenced by cropping patterns that inform how the water is distributed through the complex network comprised of dams, barrages and canals from the Aswan High Dam to the Mediterranean.
Decentralised and participatory integrated water resource management (IWRM)
Once the water enters primary and subsidiary canals, it can be pumped into the mesqa (tertiary canals that receive water from branch canals), which usually cover areas averaging approximately 70 feddan (approximately 20 ha) and are governed through a participatory water management system that relies on Water User Associations (WUAs) (Chapter 2). WUAs are designated in article 71 of Law 213/1994 as responsible for water management at the mesqa level, where farmers manually open gates at pre-determined intervals (typically every 7‑15 days), which allows water to flow into the marwas (on-farm canals) (Gouda, 2016[61]). In terms of their legal status, WUAs are private entities that do not operate for financial gain according to Law 147/2021. Elhadad, Elgamal and Mady (2020[62]) trace the origins of WUAs back to the early 1980s, when the concept of handing over water management to new water organisations first emerged. In the mid-1980s, eleven command areas were enhanced through the application of the USAID-IIP project in its different phases, which led to the development of new water organisations in those areas (Box 4.1).
The participatory nature of the arrangement involving farmers in the management decisions within their hydraulic boundaries is designed to enhance water use efficiency. WUAs play an important role in terms of ensuring that water users co-operate with the government as well as ensuring efficient operation of irrigation and drainage systems at lower levels. They have two key responsibilities: co-ordinating irrigation schedules among farmers and keeping the upgraded mesqas in good repair. Co-ordinating across a large number of farmers, especially across different districts, remains challenging, and the introduction of modern technologies that reward individual, rather than collective, action (such as diesel pumps) is sometimes perceived as making co-operation more challenging.
Box 4.1. History of WUAs in Egypt
Copy link to Box 4.1. History of WUAs in EgyptEgypt has a long history of building agricultural Water User Associations (WUAs) in the Nile Delta. However, until 1994 WUAs had no legal status and were therefore not financially viable and could not govern themselves with complete ownership of mesqa infrastructure. The 1994 revision of Law 1984/12 turned WUAs into legal organisations and created Water Users Unions (WUUs) in the New Lands. The Central Directorate of Irrigation Advisory Services (CD-IAS) was established as a permanent institution in 1999 to cover all sectors covered by the Ministry of Water Resources and Irrigation (MWRI), focusing on secondary-level Branch Canal WUAs. These organisations were expected to help with Branch Canal annual planning, maintenance prioritisation, water distribution, and cost recovery. However, branch canal level experiments were limited by the lack of legal status for WUAs above mesqa level boundaries. Branch Canal WUAs or Water Boards were never recognised as user associations for water management at the secondary canal level and above, and the policy was directed towards transferring asset maintenance responsibility.
The increased focus on Integrated water resource management (IWRM) has been supported by development partners, with several projects between 1994 and 2012 aimed at supporting WUAs and participatory IWRM. The Dutch-supported Fayoum Water User Organisations project started creating Water boards in two districts, then expanding to the other seven districts. The project then spread to different parts of Egypt (the Delta, Fayoum, Middle and Upper Egypt) where a total of 900 Water Boards were established. Further decentralisation efforts were also pursued under USAID's Agricultural Policy Reform Program (APRP) (1996‑2003), and LIFE-IWRM Project (2004‑2012) which allowed secondary-level Branch Canal Water User Associations (BCWUAs) to be formed, helped the MWRI further develop participatory IWRM on 485 000 ha (15% of Egypt's irrigated land), and expanded Integrated Water Management Districts (IWMDs) to 27 districts in 5 irrigation directorates and formed 600 BCWUAs.
WUAs and BCWUAs play an important role in terms of co-ordinating water distribution, and operating mesqa level infrastructure. By advocating for users’ needs and supporting IWMDs, they play an important role in Egypt’s increasingly decentralised water governance system by providing a link between higher level policymakers and end users of water. However, the capacity of these associations (especially BCWUAs) to operate effectively remains hampered by their limited role in Operation and Maintenance of infrastructure and financial constraints. At the branch canal level, Rap et al. (2015[63]) highlight the need to give more power to BCWUAs, the right to collect fees, and strengthen the legitimacy of BCWUAs in irrigation management in Egypt.
Source: Rap et al. (2015[63]).
High ambitions to improve water efficiency
Egypt’s goals for water resource efficiency are ambitious, even in the short-term. For instance, the framework of Egypt’s Vision 2030 strategy estimates the need to drastically increase water use efficiency from USD 4.5 per cubic metre in 2020 to USD 6.5 per cubic metre by 2030 (MPED, 2023[64]) in order to irrigate additional land central to the government’s Food Security plans.
To achieve the twin goals of increasing production while preserving scarce water resources, the strategy foresees several means of attaining its goals related to the sustainability of natural resources, ranging from technological innovations to sensitising users about using resources efficiently. Technical solutions considered by the government to increase production while preserving scarce water resources include the modernisation of irrigation systems, the reuse of agricultural wastewater, as well as improving the efficiency of water distribution. Crop diversity, doubling agricultural productivity and increasing value added of reclaimed lands are also seen as an integral part of the solution.
The implementation of National Water Resource Plans focuses on water supply augmentation rather than demand reduction
At the more operational level, many actions are included in Egypt’s two successive National Water Resource Plans (NWRPs). The government devised a first NWRP for the years 1997‑2017. This plan highlighted 39 activities with two possible scenarios, namely the status quo and a “Facing the Challenge” plan. This NWRP drew a clear distinction between irrigation in old and new lands. Given that the use of flood irrigation is illegal in the new lands, it mandated the use of modern irrigation systems (sprinklers, drip) on reclaimed lands, as well as night irrigation.
A second NWRP was launched in June 2017 with a 20-year time horizon (until 2037) in an attempt to tackle several challenges faced in the previous NWRP. In particular, water demand continued to be higher than expected, and water quality issues persisted as a result of remaining challenges related in particular to rural sanitation, as well as cropping patterns that favour profitable yet water-intensive crops such as sugarcane and cotton. The assessment of the 1997‑2017 NWRP concluded that supply-driven programmes had made better progress than those focused on water demand and decentralised management, partially as a result of challenges related to the lack of clarity in the defined goals for improving water quality and implementation of the required legislative and regulatory framework.
As a result, the second NWRP 2017‑2037 has a stronger focus on supply-driven interventions. Integrated water resource management (IWRM) still forms the basis of NWRP2037 and the model recognises the monetary value of water and promotes a participatory approach to integrate this value in water management (MWRI, 2021[65]). In terms of policy actions, the NWRP seems to be following a hierarchical logic by prioritising policies according to perceived diminishing returns. Increasing the water supply is seen as a priority for the first phase, followed by efficiency gains and demand management in a second phase. Finally, an adaptation phase would be implemented encouraging water users to discover solutions for water management independently in a context of persistent water scarcity. As a result, this NWRP tends to favour supply-side measures with investments and operational expenditures on technical solutions, while other market-based, regulatory, or voluntary tools could be added but are not currently applied. In addition to this, however, the NWRP has not yet been updated to reflect changes in other programmatic documents.
Public investments in irrigation have increased, but private investment has remained stagnant due to lack of incentives
Given the focus on increasing the quantity and efficiency of water supply, investments in irrigation have been the key component of Egypt’s water policies. The Central Bank of Egypt (CBE) estimates that investments related to agriculture, irrigation, reclamation and drainage reached 12% of total public investment for the 2020‑2021 fiscal year (Figure 4.7). While the overall share declined between 2010/11 and 2017/18, there was a noticeable increase in public investments in irrigation and drainage starting from 2018/19.
Figure 4.7. Public investment in agriculture, irrigation, reclamation and drainage (% of total public investment)
Copy link to Figure 4.7. Public investment in agriculture, irrigation, reclamation and drainage (% of total public investment)However, while there has been an increase in public investments in irrigation, available data seems to suggest that private investment remains relatively restrained. As highlighted by Figure 4.8, private investment in agriculture, irrigation, reclamation and drainage as a share of total private investment increased between 2009/10 and 2015/16, but declined over subsequent years, before increasing sharply in 2020/21. Furthermore, imports of irrigation equipment increased in 2008 but have been stagnant in recent years (Figure 4.9). The private investment and import trends are likely to reflect the slower than expected uptake of modern irrigation technologies in the Nile Delta, given that farmers are required to use modern irrigation systems in the New Lands.
Figure 4.8. Private investment in agriculture, irrigation, reclamation and drainage (% of total private investment)
Copy link to Figure 4.8. Private investment in agriculture, irrigation, reclamation and drainage (% of total private investment)
Note: No private investments in drainage were recorded over the period.
Source: CBE (2022[66]).
Figure 4.9. Imports of irrigation equipment, 2000‑24
Copy link to Figure 4.9. Imports of irrigation equipment, 2000‑24
Note: Data corresponds to imports of “Mechanical appliances; for projecting, dispersing or spraying liquids or powders, for agricultural or horticultural use, whether or not hand-operated” (HS code 842481).
Source: UN Comtrade (2025[67]).
The trends in private investment constitute a particular challenge given Egypt’s focus on irrigation modernisation and its importance to achieve the desired water use reductions. Over time, Egypt’s indicators of water efficiency in irrigation (in production value per volume of water used) have increased significantly (Figure 4.4), but the overall levels remain below the top global performers. The largest increases in water efficiency since 2007 were witnessed after 2015, which roughly coincides with periods with increases in private investment, once accounting for lags. At the farm-level, the rapid modernisation of irrigation technologies remains central to Egypt’s strategy to further improve water efficiencies, with drip and sprinkler irrigation systems estimated to reduce water consumption by 50% and 30%, respectively, compared to flood irrigation (Guo and Li, 2024[68]).
Multiple studies, including reports published by the OECD (OECD, 2016, pp. 41-42[69]), the World Bank (Scheierling and Tréguer, 2018, pp. 29-33[70]), the FAO (Perry, Steduto and Karajeh, 2017[71]),and the International Water Management Institute (IWMI) (Giordano et al., 2017, p. 30[72]), have noted that irrigation efficiency improvements can be associated with higher water consumption. This is due to two phenomena observed in different international contexts. First, higher efficiency without production constraints can encourage farmers to switch to more water intensive crops and/or to expand their irrigation area, an effect called the Jevons paradox or rebound effect (observed in the energy sector). In Egypt, water efficiency favours more profitable but water-intensive crops such as sugarcane and cotton. Second, irrigation efficiency, even without changes in crop or area, ensures that all withdrawn water goes to the plants, thereby limiting losses, including return flows to the environment. This can mean that groundwater recharge is diminished and so are returns to rivers, and consequently water sources can be depleted even if applications are more efficient with observed water use reduction (an effect called the “irrigation efficiency paradox”) (Grafton et al., 2018[73]).
In this context, it will be essential that further investments be combined with a water resource allocation system to effectively manage agricultural water demand, avoid increased water consumption, and ensure the system remains sustainable. Irrigation modernisation can reduce water withdrawals (assuming no rebound effect and quantitative management) and may improve water quality by reducing the need for water reuse. Still, system-level efficiency in the Nile river is already high, meaning that it will be more challenging to improve system efficiencies (Abdellatif et al., 2025[74]).
Building trust and engagement in the water management system is crucial and requires co‑ordinated advisory services
Policy coherence and trust in the water management system is seen as a key challenge with regard to achieving water goals in Egypt. In some cases, farm-level adoption of water technologies may be hampered by the fragmentation of extension services, and distrust in their guidance and on who benefits from water use reductions. Eldabbagh and Brouziyne (2024[75]) highlight that overcoming this would require further integration of the extension system between different sectoral Ministries and agencies (MALR, MWRI, and Lakes and Fisheries Resources Protection and Development Agency). Furthermore, the development of online advisory services can help farmers to optimise irrigation scheduling, as seen in the example of Italy’s IRRINET (Box 4.2). An integrated system designed to support holistic knowledge sharing, and support for scalable innovations could be an important aspect.
Box 4.2. Italy’s online irrigation advisory services (IRRINET)
Copy link to Box 4.2. Italy’s online irrigation advisory services (IRRINET)IRRINET is an online information service that advises farmers on efficient irrigation and water management practices. Initially developed in Italy’s Emilia-Romagna region, IRRINET provides free advisory services to over 12 000 farms daily, via a website, SMS, and a mobile app. Data on rainfall, evapotranspiration, soil and crop parameters are combined to generate a water balance for individual crops and plot areas, providing farmers with detailed guidance on irrigation scheduling.
IRRINET helps to optimise water resource use and contributed to saving an estimated 90 million m3 of water in 2017. This was equivalent to 20% of total agricultural water demand in the Emilia-Romagna region, and was achieved without compromising on crop yields and production.
IRRIFRAME was developed in 2011 to roll out online advisory services at the national level. By early 2019, IRRINET/IRRIFRAME was present in 16 Italian regions, involving 69 land reclamation boards over 16 000 users across Italy. Online advisory services are provided free of charge, and the overall management and maintenance costs are low, at just USD 0.02 per person.
Source: Climate ADAPT (2019[76]).
4.6. Conclusions and way forward
Copy link to 4.6. Conclusions and way forwardLong-term water management strategies could benefit from improved communication
Given the competition for natural resources and the stringency of water scarcities, achieving sustainable water management in Egypt is likely to require a multi-pronged approach of supply and demand side measures. Developing long-term water management strategies like those in Egypt can help to align the expectations and actions taken by different stakeholders. However, it would be important to ensure that sectoral strategies are updated to further align with broader programmatic documents (e.g. Egypt’s Vision 2030), make water-related strategic documents more easily available, and facilitate communication and inter-stakeholder discussion and co-ordination among all actors, public and private.
Technical solutions to improve the efficiency of water use are not sufficient and need to be backed up by robust water demand management systems
Water-related technical innovations have an important role to play. As highlighted earlier, most irrigated areas in Egypt use traditional irrigation techniques and sub-optimal drainage is also one of the causes of increased soil salinity. Adopting more modern irrigation technologies, improving drainage infrastructure, rehabilitating existing irrigation infrastructure, and even considering alternative water sources (e.g. expanding further treated wastewater re-use or desalination) can help improve water use efficiency under highly scarce water conditions, potentially contributing to improving water availability and quality. Current efforts to upgrade and rehabilitate irrigation infrastructure in the Nile Delta as well as efforts to encourage farmers to adopt more modern irrigation systems represent an important step in the right direction. Such measures will require sustained financial resources, with the estimated yearly cost of measures in the NWRP2037 at EGP 44 billion4 (Thomas, 2019[77]). Given the country’s objective of achieving fiscal consolidation and established investment ceilings as part of the IMF programme, existing fiscal space may limit the extent to which these goals can be achieved through public investments alone, which may create a need for the development of alternative policy instruments or alternative sources of financing.
However, it is also known that improving water use efficiency through technical solutions may not reduce but could even increase final water demand, if not implemented in conjunction with robust water demand management systems. Increasing water efficiency through technical solutions is costly and shifts the problem without changing behaviour. Research has shown that improving irrigation efficiency can alter water and cropping decisions in ways that ultimately aggravate water scarcity (Pérez-Blanco et al., 2021[78]). A robust water demand management system is also required, providing clear signals to farmers on the need to reduce water use.
Changing farming practices and behavioural responses requires well-enforced regulations…
Broad-based adoption of improved practices, technologies and cropping patterns, combined with regulatory approaches are an important part of the solution. Measures that could induce changes to crop patterns towards less water-intensive crops (e.g. replacing sugarcane by sugar beet, reducing rice cropping areas) as well as those that are more tolerant to salinity, are needed. Economic incentives derived from policies such as market price support do not help to induce these changes in crop patterns (Chapter 2) as price support mechanisms often target water-intensive crops (e.g. sugarcane, cotton). Shifting to varieties with shorter crop cycles can also play an important role in reducing the demand for water (Thomas, 2019[77]).
The government has also used regulatory measures to accelerate the transition to less water-intensive crops, including zoning regulations for water intensive crops (e.g. rice, sugarcane, banana) and has prohibited the export of certain crops (e.g. rice). Regulatory policies could also prove useful in reducing the amount of counterfeit pesticide (which could have water quality co-benefits), as well as stricter enforcement of regulations in place regarding urban settlements in prime agricultural land, which aggravate the already high land constraint. Closing existing implementation gaps on pesticides regulations and further disseminating best practices on pesticide application, such as current initiatives of training pesticide applicators, could result in improved food safety outcomes as well as improved market access for exports.
…but also knowledge, awareness and trust…
A key challenge lies in the effective implementation of such policies, in particular by making farmers and other decision makers understand the need for their co-operation as critical partners to efficiently manage scarce water and soil resources. Improving the knowledge of actors and strengthening institutions are important. A key reason for the overapplication of fertiliser is the lack of knowledge farmers have about the optimal application of fertiliser in their situation. Another challenge relates to Egypt’s extension system, where there is siloed knowledge on water in MWRI whereas knowledge on agronomic practices is concentrated in MALR (Eldabbagh and Brouziyne, 2024[75]). This fragmentation is likely to reduce the efficiency of extension services. In addition to knowledge constraints, appropriate funding and training of WUAs and other water user organisations (e.g. BCWUAs) is another important factor that can contribute to efficient use of the allocated water by WUAs and its members. Ensuring that they receive appropriate training on aspects that can improve system efficiencies (e.g. water-saving practices, how to optimise system maintenance) and on the role of each of the actors in the water management systems could also play an important role. It will be important to further strengthen and empower the different types of WUAs, ensuring they have the adequate capacity and funding to carry out their operations. A better integration of extension services from different ministries such as MALR and MWRI could also contribute to create trust and strengthen the role of farmers and their associations to contribute to reduce water demand.
…and exploring better alignment of economic instruments and policy goals
A fundamental challenge in Egypt, however, is that there is a need to further align economic incentives with objectives to save water and improve water quality in the country. As noted in the OECD 2016 Council Recommendation on water, economic instruments are an important tool of a water policy package and water policies are most effective when they are used in combination with other instruments (e.g. regulatory, voluntary) (OECD, 2016[79]). Further water demand measures should be prioritised, as supply augmentation will only shift the challenges to a later date. On water quality, Egypt has been shifting towards economic incentives (OECD, 2024[4]). This is the case in industrial waste discharge where the government is reinforcing the polluter pays principle by increasing penalties for factories whose waste discharge pollutes waterways (OECD, 2024[4]). However, in agriculture, there are at least two instances where economic incentives could be better aligned in order to promote behavioural changes: fertilisers subsidies and water charges.
Implementing performance-based incentives for water savings at the WUA level could help progress towards sustainable agricultural water management. Incentives should be tied to verified reductions in total water withdrawals, rather than reductions per hectare, to avoid the rebound effect where efficiency gains lead to expanded irrigated areas. WUAs achieving water savings targets could receive financial or in-kind rewards, which can be reinvested in infrastructure maintenance, capacity building, or further efficiency improvements. Verification should combine remote sensing, flow measurements, and periodic field inspections, ensuring transparency, accountability, and collective responsibility for sustainable water management.
Reducing fertiliser subsidies that encourage overapplication of nitrogen is imperative…
The current fertiliser subsidy promotes excessive use of nitrogen fertiliser which leads to large nitrogen surpluses, as well as reduced use of other fertilisers (e.g. phosphate). Gradually phasing out the subsidy, while promoting site-specific fertilisation strategies could deliver a triple win. It could make farming more profitable, generate much-needed public expenditure savings which could be partially re-invested in other areas, and could contribute to improved water quality.
…and creating incentives at farm- and WUA-level to reduce water consumption
Investing in individual volumetric counters of water consumption and exploring ways for making visible the cost of water or pricing water would be an efficient way to align economic incentives with conservation goals. In the current system in Egypt farmers pay for the cost of pumping water and only part of the costs of irrigation infrastructure. The price paid by the farmer in the old lands is not related to the quantity of water used, other than pumping costs as there is no volumetric pricing, abstraction fees, nor formal permits. However, in the Egyptian context, this could be challenging for several reasons (Thomas, 2019[77]). First, water prices that would allow for full cost-recovery may not be affordable nor acceptable by farmers. Second, volumetric pricing may not be appropriate when part of the return flows is recoverable. The administrative and technical challenge of metering water consumption is also seen as a significant constraint to implement water pricing in Egypt (Antipolis, 2011[80]).
A transitional option could be to first define and implement a quota or permit-based system in which quantities could partially be determined by the value of the crops cultivated, such that more water is provided for higher value-added crops (Thomas, 2019[77]). Once the system, including metering, is in place, quotas could be allocated to farmers or WUAs that could be rewarded for water savings, rather than imposing an additional cost. Only those who consume water beyond their quota would have to pay a charge. Similar schemes exist, for example, in Australia, where the government bought water entitlements from willing sellers as part of the Water Efficiency Programme and the Strategic Water Purchasing programme. WUAs or farmers could be paid for water allocations that they decide not to use because they switch to less water-intensive practices or undertake technological improvements. Funding for such a scheme would require additional resources, but in the event of a fertiliser subsidy reform, a share of the savings could be reserved for such a programme.
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Notes
Copy link to Notes← 1. This is four times the OECD median rate (OECD, 2025[48]).
← 2. “Virtual water” refers to the water used in the production of an agricultural or industrial product. A water-scarce country such as Egypt may use virtual water trade to reduce the pressures on its water resources by importing water-intensive products, and exporting products that require less water (Hoekstra and Hung, 2002[81]).
← 3. Large-scale tertiary treatment plants for agricultural drainage water have been established, including the Bahr El-Baqar plant, with a capacity of 5.6 million m³/day; the El-Hamam plant, with a capacity of 7.5 million m³/day; and the Al-Mahsamma plant, with a capacity of 1 million m³/day.
← 4. Equivalent to USD 2.4 billion based on the average exchange rate in June 2017.