EU Launches €1.8bn Investment Guarantee for Egypt

Minister of International Cooperation Rania Al-Mashat and European Commission Director-General Gert Jan Koopman announced a €1.8 billion investment guarantee from the European Union to Egypt. This guarantee is part of a broader €7.4 billion financing package under the strategic EU-Egypt partnership.

The high-level roundtable discussed activating these guarantees with various European development partners. Technical workshops will focus on utilising the guarantees in areas of mutual interest, such as energy, climate action, water, food security, and human capital investment.

Minister Al-Mashat highlighted that these guarantees will strengthen the investment partnership with Egypt, attracting foreign direct investment and stimulating local and international private sector involvement. These guarantees will be accessible through European financial institutions and other international bodies.

The guarantees are expected to boost foreign direct investment flows by €11 billion in priority sectors. Director-General Koopman emphasised the EU’s commitment to supporting Egypt’s private sector, particularly in sectors promoting a green economy and reducing carbon emissions.

In related efforts, Minister Al-Mashat held discussions with the World Bank and the International Finance Corporation (IFC) to introduce the Joint Capital Markets Program (J-CAP). This program aims to develop Egypt’s capital market by enhancing the local debt market, liquidity, investment diversification, and supporting state-owned enterprises and small projects.

Minister Al-Mashat also met with Susan M. Lund, IFC’s Vice President for Economics and Private Sector Development. Lund discussed expanding equity investments and venture capital funds in Egypt, noting the IFC’s collaboration with the Egyptian government on public offerings and water desalination projects, alongside the European Bank for Reconstruction and Development and The Sovereign Fund of Egypt (TSFE).