Egypt to discuss with EU to provide 1.8B Euros to boost private sector

Egypt and the European Union (EU) will enter into discussions aimed at securing 1.8 billion euros in guarantees from the EU.

 

 The objective is to strengthen foreign direct investment in Egypt, specifically targeting private sector companies. This development was announced in a statement released by the Ministry of International Cooperation (MoIC).

 

The discussions took place during a meeting between the Minister of International Cooperation, Rania Al-Mashat, and Gert Jan Koopman from the Directorate-General Neighbourhood and Enlargement Negotiations (NEAR) at the European Commission.

The meeting was held within the framework of the close economic ties between Egypt and the European Union.

 

One of the key focuses of the meeting was the European Fund for Sustainable Development, which aims to provide support for private sector financing and investments in neighboring countries, with a particular emphasis on Egypt.

 

Minister Al-Mashat emphasized the growing significance of the Egypt-EU relationship, especially since the signing of a political declaration to elevate it to a strategic partnership.

 

In April, the MoIC engaged in discussions and meetings with various stakeholders in Egypt, including ministries and authorities, to explore future steps in supporting the macro-economy and addressing the budget deficit.

 

Egypt hosted a significant Egyptian-EU summit in March, during which a declaration was signed to upgrade the relationship to a strategic partnership. As part of this agreement, a financial package of 7.4 billion euros was provided to support the Egyptian economy.

 

Over the past four years, international partnerships through the Team Europe Initiative have resulted in soft loans amounting to approximately $12.8 billion for both the public and private sectors. Of this amount, $7.3 billion was allocated to the public sector, while $5.5 billion was dedicated to private sector financing.

 

These investments have successfully attracted European companies, encouraging them to prioritize sectors such as sustainable infrastructure, renewable energy, food security, health and education, transportation, water and sanitation networks, small and medium-sized enterprises, environment, solid waste management, women’s empowerment, and other programs throughout Egypt.