Egypt’s Minister of Planning, Rania Al-Mashat, met with a European Union delegation representing all 27 member states to discuss enhancing strategic investment partnerships aimed at driving Egypt’s economic development.
EU as a Strategic Partner in Egypt’s Growth
Al-Mashat described the European Union as a key “strategic partner” for Egypt. She emphasized the collaborative efforts between the two, focusing on crucial areas such as food security, renewable energy, and digital transformation. The EU plays a vital role in Egypt’s development, with a cooperation portfolio worth €1.3 billion that includes grants and blended financing. This meeting builds on the ongoing partnership and mutual objectives between Egypt and the EU.
Progress Following the Egyptian-European Summit
This meeting follows the landmark Egyptian-European summit in March 2024, where President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen signed a strategic partnership agreement. The agreement aligns both parties’ priorities, focusing on sustainable investments in energy, water, food security, and addressing climate change. As part of the agreement, the EU pledged a €7.4 billion financial package, including €5 billion in budget support, €1.8 billion in investment guarantees, and €600 million in grants.
Promoting Structural Reforms and Innovative Financing
Al-Mashat also discussed Egypt’s efforts to attract foreign investment, particularly highlighting the country’s structural reforms and innovative financing mechanisms. One success story she pointed to was the first phase of the €1 billion Macroeconomic Financial Assistance (MFA) program, which has played a key role in supporting Egypt’s economic stability and reform efforts.
EU Cooperation and Private Sector Investment
The Minister presented a report titled “A Shared Development Vision for Progress and Prosperity,” which detailed $12.8 billion in EU cooperation from 2020 to 2023. Of this, $7.3 billion was invested in the public sector, while $5.5 billion supported private sector financing. This demonstrates the breadth of EU support across both public and private sectors, facilitating development across various domains.
Innovative Platforms and Green Initiatives
The discussions also highlighted Egypt’s innovative initiatives, including the National Water, Food, and Energy (NWFE) platform, launched during COP27. The platform, designed to attract climate investments in water, energy, and sustainable transport, has garnered praise from multilateral development banks.
Furthermore, Al-Mashat underscored Egypt’s growing focus on green hydrogen production, with plans to collaborate with European financial institutions and leverage their technical expertise. She also mentioned successful debt swap agreements with Germany and Italy, as well as ongoing negotiations with China for similar initiatives.
Future Collaborations and Joint Projects
The EU delegation, which included experts from the European Council’s CODEV-PI and RELEX-HQ teams, as well as diplomats from countries such as Germany, France, Italy, and Poland, focused their discussions on key areas of collaboration. These include macroeconomic support, budgetary assistance, and future joint projects that will help further Egypt’s development and growth.
Strengthening the EU-Egypt Partnership for Economic Progress
Egypt’s strategic partnership with the European Union continues to grow stronger, with the two sides focused on fostering collaboration in vital sectors such as sustainability, climate change, and energy. With the EU’s financial support and Egypt’s ongoing reform efforts, this partnership promises to play a crucial role in boosting Egypt’s economic development in the years ahead.
