EU proposes €7.4B-bundle of financial support, investments targeted at Egypt

CAIRO – 17 March 2024: The Delegation of the European Union to Egypt issued a press statement Sunday - in tandem with holding the EU-Egypt Summit in Cairo – on a proposed bundle of financial support and investments worth €7.4 billion for the period 2024-2027 in the framework of bolstering relations to the strategic level.

The bundle consists of €600 million in grants, including €200 million to migration management. That is in addition to €5 billion in soft loans and €1.8 billion in investments.

The statement highlighted the EU's six priorities in its ties with Egypt, and that are political relations, economic stability, trade and investment reinforcement, migration management, security, and capacity-building of human resources.

The delegation also noted that the Southern Neighborhood Economic and Investment Plan prioritizes energy transition as well as consolidating water, food and energy security, which is aligned with Egypt's climate strategy.

In that context, the European Union will grant Egypt €35 million to expand its renewable energy generation capacity and enhance electricity supply. Another project is Medusa, which is a submarine fiber optic cable extending on 7,100 kilometers that will increase data transfer and improve connectivity between North African states and among Mediterranean countries.

On the front of food security, the European Commission had already financed Egypt with €100 million to enlarge grain storage and production mitigating the impact of the Russia-Ukraine War.

In the near future, the EU will assist Egypt with expanding and modernizing the wastewater treatment plant in Cairo's Helwan as well as renovating the infrastructure of wastewater and sanitation services in Fayoum governorate.