At the EU-Egypt Investment Conference held on June 29-30, a significant milestone was achieved as the European Union and Egypt signed a Memorandum of Understanding (MoU) for Macro-Financial Assistance (MFA) amounting to up to €1 billion. This partnership marks a pivotal moment in their Strategic and Comprehensive Partnership, established in March 2024, aimed at enhancing economic ties and promoting stability in the region.
European Commission President Ursula von der Leyen emphasized the transformative impact of this collaboration, stating, “Today, we deliver for Egyptian businesses and entrepreneurs with €1 billion in macro-financial assistance, which will incentivise the reforms that businesses and entrepreneurs in the private sector need.” This financial support is expected to catalyze economic reforms crucial for improving Egypt’s business environment and enhancing its competitiveness.
The Investment Conference served as a platform to discuss and promote economic reforms in Egypt, aimed at attracting further EU investments across key sectors. Notably, private investment agreements worth €40 billion were anticipated to be announced and signed at the conference, with a strong focus on renewable energy and hydrogen sectors.
One of the flagship initiatives unveiled at the conference is the Green Sustainable Industry programme, supported by a €30 million EU grant, which aims to enhance Egypt’s industrial capacity for pollution abatement, decarbonisation, and energy efficiency. Additionally, the conference witnessed the signing of three Financing Agreements totaling €36 million to bolster youth employability, child protection systems, and manufacturing capacities in Egypt.
The EU also announced its support for the Interreg cooperation programme NEXT MED with a substantial €263 million contribution. This programme aims to foster sustainable development across the Mediterranean Sea Basin, benefitting coastal territories of 15 countries, including Egypt.
Looking forward, the MoU for up to €1 billion in MFA is expected to address Egypt’s external financing needs and support its green transition agenda. The funds will be disbursed in one tranche by the end of 2024, subject to progress on agreed macroeconomic stability and business environment reforms.
In closing, President von der Leyen highlighted, “This is just the beginning,” underscoring the EU’s commitment to Egypt’s sustainable growth and regional stability through strategic investments and comprehensive cooperation.
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