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Northern Africa

Egypt and the EU to Strengthen Economic Cooperation to Boost Investments

June 4, 2025

(3 Minutes Read)

Minister of Planning, Economic Development, and International Cooperation (MPEDIC), Rania Al-Mashat, highlighted the critical role of the forthcoming launch of a €1.8 billion EU-backed investment guarantee mechanism.

Negotiations are underway over structural reforms linked to the economic component of Egypt’s national program, supported by the European Union’s €4 billion Macroeconomic Financial Assistance (MFA).

Minister of Planning, Economic Development, and International Cooperation (MPEDIC), Rania Al-Mashat, highlighted the critical role of the MFA in driving these reforms and pointed to the forthcoming launch of a €1.8 billion EU-backed investment guarantee mechanism.

Al-Mashat met with Ambassador Angelina Eichhorst, Head of the EU Delegation to Egypt, along with senior EU officials, to discuss ongoing cooperation under the strategic partnership between Egypt and the EU.

These reforms, involving multiple Egyptian entities, aim at enhancing macroeconomic stability, boosting competitiveness, improving the business environment, and advancing green transformation. They form a key part of Egypt’s wider development narrative aimed at sustainable economic growth.

This initiative aims to expand foreign direct investment opportunities and support private sector development across Egypt.

Between 2025 and 2027, Egypt and the EU will implement a new cooperation framework as part of their comprehensive strategic partnership. This framework emphasises clear priorities and actionable measures to enhance collaboration.

The European Union remains one of Egypt’s most important development partners, with the current cooperation portfolio reaching approximately €1.3 billion. This includes grants and blended finance supporting vital sectors such as transport, water, agriculture, renewable energy, social protection, governance, and institutional capacity building.