The European Union and Egypt on Saturday signed an agreement that will see the EU invest up to €1 billion ($1.1 billion) in the populous Arab country as part of a strategic partnership.
The €1 billion financing agreement is the first tranche of a larger €7.4 billion package that European Commission President Ursula von der Leyen announced in March.
The money will be invested in sectors including clean energy, manufacturing and food security, according to the commission.
The deal was signed by EU Trade Commissioner Valdis Dombrovskis and Egyptian Minister of International Cooperation Rania al-Mashat at an EU-Egypt investment conference in Cairo.
The conference, taking place on Saturday and Sunday, is intended to promote ventures in Egypt by European businesses.
Von der Leyen addressed the conference, lauding ties with Egypt.
“Today, Egypt and Europe are closer than ever before, so this is a true win-win partnership for Egypt and for Europe alike,” she said.
The money will “accompany and incentivize Egypt’s reform agenda,” von der Leyen said. “These reforms will foster a stronger business environment and attract more investment and create more good jobs in Egypt.”
“This conference marks the first implementation steps in the course of elevating the relations and reflects commitment of Egypt and the EU to go beyond the phase of pledges to the phase of implementation,” Egyptian President Abdel Fattah al-Sissi said in a speech at the same conference.
“The convening of this conference comes at a very delicate time amid successive international and regional crises. Egypt has proven to be a reliable partner in facing joint challenges in a way that achieves security and stability,” he said.
Egypt, which hosts an estimated 9 million refugees and migrants, has been impacted by the months-long Israel-Hamas war in the neighbouring Gaza Strip.
The country of around 105 million people has been in economic crisis, including a foreign currency crunch and soaring inflation.
In an attempt to stabilize economy, Egypt in March announced that the value of its weak currency was to be determined by market forces going forward. The decision to float the Egyptian pound resulted in a further devaluation.
On Saturday, al-Sissi, who has been in office since 2014, said Egypt is moving “with steady and swift steps” to create a more sustainable economy.
