• EU and Egypt launch a new platform to attract USD 5.8B for clean energy, water, agriculture, SMEs, and digital transformation.
• Initiative taps EU funds and global institutions to back Egypt’s green transition under the Global Gateway strategy.
• Separate EU-funded USD 24.2M EIB grant to support Egypt’s decarbonization and environmental monitoring upgrades.
  

EU and Egypt

The European Union and the Government of Egypt will launch the EU-Egypt Investment Guarantee for Development Mechanism. This platform will aim to attract investments to high impact projects. This is in areas such as clean energy, water and wastewater management and sustainable agriculture. Additionally, it will also support digital transformation, and the development of small and medium-sized enterprises (SMEs). 

Moreover, this platform aims to mobilize up to approximately USD 5.8 billion (EUR 5B) in investments by 2027. This includes the around USD 2.08 billion (EUR 1.8B) announced as part of EU-Egypt Strategic and Comprehensive Partnership.

Furthermore, to achieve this, the platform aims to leverage EU resources from the European Fund for Sustainable Development Plus (EFSD+). Additionally, it also seeks to draw resources from European and International Financial Institutions (IFIs). These IFIs implement EU guarantees in close coordination with Member States and the private sector. 

This step marks a milestone under the EU-Egypt Strategic and Comprehensive Partnership and contributes to the EU’s Global Gateway strategy.

Egypt and EIB

The European Investment Bank’s development arm (EIB Global) and Egypt have signed an agreement. It is for the use of an approximate USD 24.2 million (EUR 21M) grant to help green the Egyptian economy. 

The grant is funded by the European Union and managed by EIB Global. Additionally, it intends to accelerate efforts by the Egyptian private and public sectors to decarbonise and promote environmental sustainability.

 EUR 20 million of the EU grant will be used to co-finance green investments. These include reducing  carbon emissions, boosting recycling and supporting other pollution-reduction steps taken by Egyptian industry. Meanwhile, the remaining EUR 1 million for the digitalisation of the Egyptian Environmental Affairs Agency. This is to enhance its environmental monitoring, enforcement and transparency.