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Egypt, EU probe private sector guarantees

Mashat and Koopman held a virtual meeting to follow up on the preparations for the investment conference between Egypt and the European Union in June.
11.06.24 | Source: Egypt Independent

Egyptian Minister of International Co-operation Rania al Mashat, on Sunday 9 June, 2024, discussed with Directorate-General Neighborhood and Enlargement Negotiations (NEAR) Negotiations at the European Commission Gert Jan Koopman the mechanism for private sector guarantees in preparation for the investment conference with the European Union.

Mashat and Koopman held a virtual meeting to follow up on the preparations for the investment conference between Egypt and the European Union later in June.

The meeting tackled guarantees that the European Union will provide to private sector companies totaling 1.8 billion euros to enhance foreign direct investment in Egypt.

The two sides discussed the mechanism of the European Fund for Sustainable Development, which will provide guarantees to the private sector, financing opportunities, and special guarantees for private sector financing and investments in neighboring countries, particularly Egypt.

Mashat emphasised the importance of the mutual relations with the European Union, which witnessed significant momentum, especially after the signing of the political declaration to elevate the relationship to the level of a strategic partnership between President Abdel Fattah El Sisi and Ursula von der Leyen, the President of the European Commission, during the Egyptian-EU Summit in March.

The minister added that the Ministry of International Cooperation is working on coordinating between various national entities and the EU to discuss mechanisms for supporting the macro-economy and budget support to bolster the economic and structural reforms undertaken by the state, and to enhance economic partnership between the two sides to stimulate joint development efforts.

In April, the Ministry of International Co-operation received a high-level EU mission and held discussions and meetings with various stakeholders in Egypt, including the Ministries of Social Solidarity, Finance, Environment, Electricity and Renewable Energy, Trade and Industry, and Labor, in addition to advisors and assistants to the Cabinet, the General Authority for Investment and Free Zones, the Competition Protection Authority, and the Central Bank, to discuss future steps within the framework of the mechanism of supporting the macro-economy and supporting the budget deficit.

In March, Egypt hosted a historic Egyptian-EU summit, during which president Sisi and the President of the European Commission signed a declaration to upgrade the joint relations to a strategic partnership. The declaration also included a financing package to support the Egyptian economy from the EU worth 7.4 billion euros.

The Minister of International Cooperation also participated as part of the Egyptian delegation in the 10th meeting of the Partnership Council between the Arab Republic of Egypt and the European Union in the Belgian capital, Brussels, where she launched the report “Partnership between Egypt and the Team Europe Initiative: A Shared Development Vision for Progress and Prosperity”.

The report reviews the distinguished cooperation with the Team Europe Initiative institutions during 2020-2023 and the preparation for future cooperation on issues of common interest to both sides.

International partnerships with the Team Europe Initiative through soft loans amounted to about $12.8 billion for the public and private sectors over 4 years, with $7.3 billion for the public sector and $5.5 billion in financing for the private sector, which resulted in attracting investments from European companies in priority sectors.