Lack of Fertile Land

Egypt has to face some big environmental problems such as: the lack of fertile land, soil degradation due to chemical fertilizer application, and inappropriate waste management.

"As a result of intensive agricultural practices, using huge amounts of chemical fertilizers, as well as pest and disease control agents, most soils are degraded and leached out, and farmers increasingly see themselves confronted with various crop diseases and continuously decreasing yields.

Even though the Egyptian economy has been steadily growing since 5 years, the country’s Gross Domestic Product remains rather low. Not all classes of the population benefit from Egypt’s economical growth, and a considerable number of people live just above the poverty level, especially in rural areas. Only 2% of Egypt’s geographical surface is arable land, but the agricultural sector remains the third largest employer in Egypt – meaning that the well-being of the population’s majority depends on a non-sustainable agricultural system.

The lack of fertile land forces Egypt to purchase resources from other countries. This lowers the available money to build the economy."

Source:http://www.soilandmore.nl/sites/egyptlocalandglobalimpact.html … "Lack of Fertile Land" has a significant impact, so an analyst should put more weight into it. "Lack of Fertile Land" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Lack of Fertile Land" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.