Brussels (The Brussels Morning Newspaper) – Ambassador Christian Berger anticipates the first tranche of the EU’s 7.4 billion euros financing package for Egypt by September or October next year, formalized at the Egypt-EU Investment Conference.
As head of the EU delegation in Egypt, Ambassador Christian Berger expects the first tranche of the EU’s 7.4 billion euros financing package to be paid to Egypt by September or October next year.
Egypt and the EU marked the agreement of this tranche during the Egypt-EU Investment Conference hosted by Egypt on 29-30 June. This package comes under the Strategic and Comprehensive cooperation between the two sides launched in March.
What are the components of the EU’s 7.4 billion euros package?
The one billion euros are contained in a financing package consisting of three major elements: a small financial backing valued at one billion euros (already signed); five billion euros in the shape of favourable loans, part of the EU’s full economic support amounting to 7.4 billion euros within the framework of strategic and conclusive collaboration; and around 600 million euros for assignments in multiple sectors including transport and migration, Berger stated.
How much is the new MoU worth for 2025-2027?
He also stated that the EU is discussing another memorandum of understanding (MoU) worth four billion euros, the most significant MoU in 2025-2027. Berger added that five-million financing packages were employed as financial guarantee packages for the private sector.
Moreover, the Egypt-EU conference glimpsed the signing of MoUs and deals worth 67.7 billion euros. These MoUs were developed to help support the Egyptian economy amid the turbulent regional state, keeping a new era of cooperation between Egypt and the EU.
What is Afreximbank’s planned financing for Egypt?
Similarly, the African Export-Import Bank (Afreximbank) is currently reviewing the provision of new financing for Egypt worth $3.2 billion. It includes the regeneration of existing facilities to permit the volume of its facilities to banks and companies to reach $5 billion by the end of 2024, Executive Vice President Haytham ElMaayergi said. ElMaayergi also expressed the total value of the bank’s facilities delivered to Egyptian banks in the last three years has gained $12.8 billion, $9.5 billion of which is given to the banking sector.
In addition to the bilateral partnership, Egypt benefited from regional and Neighbourhood-wide partnership programmes in sectors of the environment, sustainable development, renewable energy, energy efficiency and climate change, and private sector development, including facilities to deliver access to finance for SMEs and creative start-ups, support to civil society and autonomous media, support for security collaboration in areas such as fighting organised crime and terrorism, migration and inter-regional cooperation.
What are Egypt’s benefits from the EU twinning mechanism?
Under the EU twinning mechanism, the Egyptian public administration partnered with European administrations for joint learning and capacity building through the sharing of EU best practices, via twinning projects in the sectors of finance, internal market and economic standards, standardisation and certification, trade and industry and transport. Egypt also profited from TAIEX (Technical Assistance and Information Exchange Instrument) which sustained public administration reforms with 120 events in 2016-2023.
