“Al-Mashat” discusses progress in the implementation of the Macro-Financial Assistance (MFA) Mechanism, for macro-economic and budget support, as well as investment guarantees for the private sector, and future joint projects.
“Al-Mashat”: The European Union is a key supporter of many vital projects that enhance Egypt’s ability to achieve its comprehensive and sustainable development goals.
Exploring opportunities for collaboration with European financial institutions through the World Bank’s unified guarantee platform to provide more innovative financial tools for the private sector.
The EU Ambassador emphasizes the significant progress in joint relations with Egypt and expresses eagerness to continue strengthening the economic partnership.
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, welcomed Ms. Angelina Eichhorst, the new European Union Ambassador to Cairo, and the accompanying delegation in their first meeting following her assumption of office, succeeding Ambassador Christian Berger.
The meeting discussed various aspects of the economic partnership between the Arab Republic of Egypt and the European Union, within the framework of the strategic relations between the two sides.
At the beginning of the meeting, H.E. Dr. Al-Mashat extended congratulations to Ms. Eichhorst on her new position as the European Union Ambassador and Head of the EU Delegation to Egypt and the Arab League, wishing her success in her mission. H.E. Minister Al-Mashat affirmed Egypt’s keenness to continue coordination and cooperation to implement the strategic partnership agreement between Egypt and the European Union, with a focus on enhancing economic relations to broader horizons.
H.E. Dr. Al-Mashat highlighted the EU’s strategic importance as one of Egypt's main partners in economic and social development. H.E. noted that the European Union is a key supporter of many vital projects that enhance Egypt's ability to achieve its comprehensive and sustainable development objectives.
H.E. Minister Al-Mashat also addressed the significant progress in relations with the EU since the beginning of the year, including the holding of the Egyptian-EU Association Council, the high-level visit of the President of the European Commission, the signing of the Joint Declaration on the strategic partnership, and the subsequent Egyptian-EU Investment Conference.
H.E. Dr. Al-Mashat also highlighted the €7.4 billion financial package within the Egyptian-EU partnership aimed at supporting development projects and enhancing economic stability, ensuring an attractive investment environment, and encouraging trade and investment. This also contributes to enhancing the migration and mobility frameworks to ensure the organized and mutually beneficial exchange of expertise and human resources, as well as expanding efforts to develop human capital.
The Minister further emphasized the importance of supporting small and medium-sized enterprises (SMEs), which are fundamental to driving the economy, creating job opportunities, and fostering innovation and entrepreneurship. H.E. Dr. Al-Mashat also mentioned collaboration in supporting renewable energy in line with global sustainability goals and strengthening social protection programs to provide a safety net for the most vulnerable segments of society.
Both sides reviewed the current status of the first phase of the Macro-Financial Assistance (MFA) Mechanism, for macro-economic and budget support. H.E. Dr. Al-Mashat highlighted the ministry’s coordination with EU missions and relevant national bodies to review the structural reforms implemented, as well as the investment guarantees provided by the EU, which will enhance European investments in Egypt.
The discussion also touched on cooperation opportunities in light of the EU’s plan to implement the European Carbon Border Adjustment Mechanism (CBAM). H.E. Dr. Al-Mashat explained that the government is working to strengthen cooperation with development partners to enhance the competitiveness of Egyptian exports through grants that support the industrial sector in aligning with this mechanism.
The Minister of Planning, Economic Development, and International Cooperation spoke about ongoing relations with European financial institutions in various development fields, particularly empowering the private sector, including key institutions like the European Investment Bank (EIB), the European Bank for Reconstruction and Development(EBRD), and the International Finance Corporation (IFC). H.E. Dr. Al-Mashat pointed out that, within the World Bank’s efforts to implement an ambitious reform plan and launch a unified guarantee platform, European institutions could collaborate with the International Investment Guarantee Agency of the World Bank to unify efforts and create more innovative tools for the private sector in Egypt.
The new European Union Ambassador in Cairo, Ms. Eichhorst, expressed gratitude to H.E. Dr. Al-Mashat for the warm reception and emphasized the significant progress in EU-Egypt relations, which are now considered a model of constructive partnerships. She expressed willingness to continue working together for further developing the economic partnership and building on the achievements made.
It is worth noting that the ongoing development cooperation portfolio with the EU amounts to €1.3 billion, including grants and blended financing, aimed at enhancing vital sectors such as transport and infrastructure, which play a key role in boosting economic movement and linking various regions. It also targets the water sector to improve access to clean water and ensure sustainability in water resources, as well as agriculture, which contributes to food security and enhances local production.