7 essential facts about the new EU-Egypt strategic partnership

The strategic partnership between Egypt and the European Union (EU) has entered a new phase with agreements that promise to drive economic growth, sustainability, and investment in key sectors. Below are the most important takeaways from this collaboration:

1. €1 Billion Macro-Financial Assistance (MFA) for Economic Stability
   The EU is set to disburse up to €1 billion in Macro-Financial Assistance to Egypt by the end of 2024. This is part of a broader €5 billion assistance package aimed at stabilizing Egypt’s economy and promoting structural reforms. The MFA will support policies focusing on macroeconomic stability, improved business environments, and Egypt’s green transition.

2. Focus on Private Sector Investments and Economic Reforms
   At the EU-Egypt Investment Conference in June 2024, the two sides committed to intensifying private sector investments in key sectors such as renewable energy, sustainable agriculture, digitalization, and more. The conference highlighted Egypt's ongoing economic reforms aimed at creating a favorable business climate for both domestic and international investors.

3. Significant Investment Agreements Expected
   The conference brought together over 1,000 participants, including top EU and Egyptian officials, CEOs, and financial institutions. Investment agreements worth approximately €40 billion are anticipated, particularly in renewable energy and hydrogen sectors, underlining Egypt’s role as a future clean energy hub in the Mediterranean.

4. Green Sustainable Industry Program
   A new Green Sustainable Industry program was launched, backed by a €30 million EU grant and a €271 million loan from the European Investment Bank (EIB). This initiative will help Egyptian industries reduce pollution, decarbonize, and enhance energy efficiency, aligning with the country's sustainable development goals.

5. Support for Youth and Skills Development
   The partnership is also investing in Egypt's youth with new skills programs designed to enhance employability and prepare them for the evolving job market. Additionally, €36 million in financing agreements were signed to support child protection, health technology, and vaccine access, promoting a more resilient and inclusive society.

6. Strengthening Egypt’s Trade and Industrial Growth through the EU Tigara Program
   Egypt secured an €8 million agreement under the EU Tigara program to enhance trade, industry, and market access. This program, implemented with the support of UNIDO, will boost small and medium-sized enterprises (SMEs) and enhance their participation in global value chains.

7. Strategic Cooperation Aligned with National Priorities
   Egypt’s collaboration with the EU aligns with its national strategic priorities, focusing on governance reforms, macroeconomic stability, and increasing private sector participation. The ongoing cooperation seeks to streamline public investment, enhance industrial development, and create long-term economic growth.