Egypt secures EUR 90 mn loan from the EU, EIB to boost food resilience

EU and EIB Provide EUR 90 Million Loan to Bolster Egypt's Food Resilience

Egypt is set to receive a EUR 90 million loan from the European Union (EU) and the European Investment Bank (EIB) to support the Egypt Food Resilience project. This announcement was made during a visit to Egypt by EU Commissioner for the Mediterranean, Dubravka Šuica, who held meetings with key Egyptian officials, including President Abdel Fattah El Sisi.

The loan aims to enhance Egypt's food security by facilitating the purchase of wheat, demonstrating the ongoing collaborative efforts to address critical challenges. While the statement highlights the importance of this funding, it remains unclear whether these funds are part of the broader EUR 7.4 billion package of loans, grants, and investments pledged by the EU to Egypt through 2027. This comprehensive package, announced last year, includes macro-financial assistance and EUR 1.8 billion in additional investments under the Southern Neighborhood Economic and Investment Plan.

The EU has emphasized that economic reforms are crucial for unlocking the pledged EUR 1.8 billion in investments. The EU is committed to attracting foreign investments to Egypt, particularly in clean technology and renewable energy sectors. Continued progress on reforms will unlock both public and private investment opportunities.

It's important to note that Egypt received the first EUR 1 billion tranche of a EUR 5 billion macro-financial assistance package in late December and is expected to finalize an agreement with the EU to receive the remaining EUR 4 billion by June.

Strengthening EU-Egypt Relations and the New Pact for the Mediterranean

Commissioner Šuica's visit to Egypt aimed to reaffirm the EU's commitment to supporting Egypt and to present her vision for the New Pact for the Mediterranean. In addition to her meeting with President El Sisi, she held discussions with Prime Minister Moustafa Madbouly and Foreign Minister Badr Abdelatty.

During her meeting with President El Sisi, Šuica emphasized the importance of the strategic relationship between Egypt and the EU, highlighting the need to boost trade and investment cooperation. Discussions also covered illegal immigration, the need to address its root causes, and regional developments in Gaza, Libya, Syria, and Sudan.

In her meeting with Foreign Minister Abdelatty, he advocated for the swift approval of the second EUR 4 billion macro-financial assistance package. He also promoted the Suez Canal Economic Zone as a key investment hub and underscored Egypt's role in European energy security. Abdelatty reiterated Egypt's readiness to attract further European investments.

During her meeting with Prime Minister Madbouly, he urged the EU to deepen investment ties, particularly in green hydrogen, renewables, and technology. Šuica reaffirmed the EU's commitment to strengthening relations with Egypt, highlighting ongoing efforts to maximize the benefits of the strategic partnership agreement signed last year.

Both Prime Minister Madbouly and Commissioner Šuica expressed their readiness to collaborate on implementing Egypt's Gaza reconstruction plan.