04-03-2025
Al-Mashat, Šuica discuss Egypt-EU economic ties
Egypt's Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, has met with Dubravka Šuica, the EU Commissioner for Mediterranean Affairs, to discuss future economic relations between Egypt and the European Union.
During the meeting, which was also attended by Angelina Eichhorst, EU Ambassador to Cairo, and officials from the European Investment Bank and the European Commission, Al-Mashat and Šuica explored avenues for strengthening the strategic partnership between Egypt and the EU.
Al-Mashat welcomed Šuica to her new position and stated that the establishment of the EU Commissioner for Mediterranean Affairs 'reflects the EU's commitment to deepening relationships with Mediterranean countries based on shared development priorities and reinforcing the common destiny of the region's countries to face mutual development challenges.'
Al-Mashat also said that Egypt has a crucial role in strengthening the Euro-Mediterranean partnership, citing its close ties with countries in the region.
Al-Mashat highlighted the comprehensive partnership between Egypt and the EU, which marks a new phase of cooperation aimed at enhancing bilateral relations across various areas of common priority. These areas include strengthening cooperation in politics, economy, trade, security, migration, and human development. She stressed the need to implement these pillars to enhance mutual development priorities, noting that the 'positive political momentum in Egyptian-European relations elevates the development of economic and investment ties within the framework of shared economic development priorities between Egypt and the EU.'
The development financing allocated within the framework of the partnership includes a total of €7.4bn to support Egypt between 2025 and 2027. The funding is intended to support economic stability, stimulate investment, and support key sectors contributing to sustainable development. Al-Mashat confirmed that the Ministry of Planning and Economic Development is coordinating with relevant ministries and authorities to design programmes and projects to be funded under the grants allocated for cooperation during the 2025-2027 period.
Discussions also touched on the 'Macro-Economic Support and Budget Support Mechanism.' Al-Mashat outlined the efforts made by national authorities to implement structural reforms related to the first phase, for which the EU has provided €1bn. The meeting also included discussions on the second phase of this mechanism, valued at €4bn Euros.
The meeting reviewed mechanisms for integrating the private sector into the investment system and utilising investment guarantees offered by the EU. These guarantees amount to €1.8bn under the European Fund for Sustainable Development Plus (EFSD+), which was announced during the European Investment Conference. Egypt will benefit from these funds to support sustainable development initiatives and strengthen the private sector's role in driving economic development.
Al-Mashat reiterated that work is underway to launch the investment guarantee mechanism for development between Egypt and the EU, aiming to activate European investment guarantees of €1.8bn to mobilise around €5bn in investments in green transformation sectors and other shared priority areas.
The meeting also touched on the ministry's efforts to empower the private sector through the 'HAFIZ' platform, which provides financial and technical support and serves as an integrated platform offering various services from development partners to the private sector, including large, small, medium enterprises, and startups.
Al-Mashat referred to ongoing cooperation programs within blended financing mechanisms, providing support to various sectors. These sectors include transport infrastructure, water desalination projects, sustainable agricultural development, entrepreneurship, clean energy projects, and programs aimed at the most vulnerable groups.
Regarding regional cooperation, the meeting discussed ways to enhance regional collaboration, particularly among Mediterranean basin countries, in alignment with global economic shifts, green transition, and the use of digitalisation and artificial intelligence. A number of newly funded European Commission programs were also reviewed, which Egypt could benefit from.
Al-Mashat underscored the ministry's efforts to advance the government's economic and structural reform program, including governance and improving the efficiency of public investments to make room for the private sector.
