Dr. Rania Al-Mashat Hosts a High-Level Delegation from the European Commission to Discuss Investment Guarantees and the Second Phase of the MFA

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, hosted a high-level delegation from the European Commission, led by Mr. Stefano Sannino, Director-General of the Directorate-General for the Middle East, North Africa and the Gulf -DG MENA-, and Ms. Annika Eriksgaard, Director of Financial and Economic Affairs - DG ECFIN. The meeting discussed ways to enhance future cooperation and explored areas of strategic partnership between Egypt and the European Union, particularly in activating the investment guarantees mechanism, consultations on the second phase of the Macro-Financial Assistance (MFA) and budget support mechanism, and other ongoing projects.

At the beginning of the meeting, H.E. Dr. Al-Mashat emphasized the importance of the Investment Guarantees for Development Mechanism as a means to explore ways of engaging private sector stakeholders and creating a more sustainable investment environment. 

H.E. Dr. Al-Mashat highlighted the allocation of €1.8 billion in investment guarantees under the European Fund for Sustainable Development Plus (EFSD+), stressing Egypt's readiness to maximize the benefits of these allocations to support sustainable development initiatives.

H.E. Minister Al-Mashat also referred to the Abu Qir Metro project in Alexandria, which is jointly funded by the European Investment Bank, the French Development Agency, the Asian Infrastructure Investment Bank, and the European Bank for Reconstruction and Development under the "NWFE" program. This project aims to rehabilitate and modernize the 22 km Abu Qir railway line in Alexandria to convert it into a high-frequency metro, including renewing electrical and mechanical systems, adding metro stations, eliminating ground-level crossings, and renewing railcars.

The Minister also reviewed the "Pact for the Mediterranean," which represents a strategic shift in the EU’s engagement with its southern neighborhood. It focuses on bilateral partnerships rather than regional frameworks like the Union for the Mediterranean. While the Mediterranean region remains a strategic priority, there is a noticeable shift away from multilateral cooperation towards direct agreements between countries. The Pact is based on two main pillars: bilateral strategic partnerships and regional cooperation.

Regarding the Horizon Europe program for scientific research and technical support, the two sides reviewed ways to enhance cooperation on Egypt’s participation in the program to facilitate support opportunities and provide technical assistance to maximize national benefits and cooperation through scientific and research initiatives, with a focus on human capital development and capacity building.

H.E. Dr. Al-Mashat highlighted the strategic and comprehensive partnership between the Arab Republic of Egypt and the European Union, which represents a new phase of cooperation aimed at enhancing bilateral relations in various areas of shared priority.

H.E. Minister Al-Mashat added that the Ministry of Planning, Economic Development, and International Cooperation is currently reviewing the cooperation framework for the period from 2025 to 2027 with the relevant ministries and authorities as part of the comprehensive strategic partnership. This review aims to direct grants and funding towards key areas of cooperation between Egypt and the EU, ensuring that the funding aligns with national priorities and achieves maximum impact.

H.E. Dr. Al-Mashat also affirmed the importance of the EU as a key strategic development partner, noting its contribution to the implementation of priority projects across various sectors. The total current portfolio is approximately €1.3 billion, which includes grants and blended financing supporting vital sectors such as transport, water, agriculture, small and medium enterprises, renewable energy, social protection, governance, civil society, and capacity building.

H.E. Minister Al-Mashat mentioned the total value of the first phase of the financial assistance mechanism from the European Commission. She pointed out that Egypt is currently preparing the necessary structural reforms in collaboration with various agencies to pave the way for the second phase of the mechanism.