Egypt approves €7M EU grant to for green development
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Egypt has officially approved a €7 million grant from the European Union to support its sustainable development goals, marking another milestone in the country’s growing partnership with Europe on climate and economic resilience.
Presidential decree confirms EU agreement
On July 17, President Abdel Fattah El-Sisi issued a decree endorsing a financial agreement with the EU under the Green Facility Program. The approval was published in Egypt’s Official Gazette, signaling the country’s formal acceptance of the grant and commitment to its green transition agenda.
The funding is part of a broader initiative to mobilize international resources for sustainable projects in Egypt, especially in sectors that are vulnerable to climate change and environmental pressures.
Grant is part of larger EU investment strategy
The €7 million grant falls within the framework of the European Fund for Sustainable Development Plus (EFSD+), a flagship EU investment platform launched jointly with the Egyptian government earlier this year.
Unveiled in Cairo during a collaborative announcement by Egyptian officials and the EU Delegation, EFSD+ aims to unlock €1.8 billion in investment guarantees across partner countries, with Egypt being a key beneficiary.
The program was initially outlined during the Egypt-EU Summit in March 2024, where President El-Sisi and European Commission President Ursula von der Leyen laid the foundation for a stronger development alliance.
A boost to Egypt’s green transition
The grant and the broader EFSD+ mechanism are designed to address critical development needs while encouraging private sector involvement. By de-risking investments through guarantees and blended finance tools, the initiative aims to attract capital to strategic sectors including:
Renewable energy and energy efficiency
Water and wastewater infrastructure
Sustainable agriculture and food security
Climate adaptation and resilience
Digital transformation and connectivity
This model reduces the burden on public budgets while accelerating progress toward national and global sustainability goals.
Private sector engagement is central to success
One of the EFSD+ program’s defining features is its ability to catalyze private investment. Through financial instruments such as concessional loans, risk-sharing guarantees, and blended finance, the program lowers barriers for businesses and investors operating in emerging markets.
This approach aligns closely with Egypt’s Vision 2030, which emphasizes private-sector-driven growth, environmental protection, and long-term sustainability.
Egypt-EU cooperation continues to expand
The grant highlights a deepening relationship between Egypt and the European Union. Beyond climate-related financing, the two partners are cooperating in areas such as trade, digital infrastructure, regional stability, and energy security.
With Egypt positioned as a regional hub for green energy—particularly solar and hydrogen—collaborations like EFSD+ serve mutual interests: they help Egypt meet development challenges while supporting the EU’s broader strategy to strengthen partnerships with neighboring countries.