Egypt is set to receive a EUR90 million ($94.3 million) loan from the European Union (EU) and the European Investment Bank as part of the Egypt Food Resilience Project, according to an official statement from the European External Action Service (EEAS). The funding aims to enhance Egypt’s food security through wheat purchases, reinforcing the ongoing cooperation between Egypt and the EU in addressing economic and social challenges.
The announcement was made during the visit of Dubravka Šuica, EU commissioner for the Mediterranean, who met with President Abdel Fattah El-Sisi and other senior Egyptian officials. It remains unclear whether this loan is part of the broader EUR7.4 billion financial package that the EU has pledged to Egypt through 2027. This larger package includes macro-financial assistance loans and EUR1.8 billion in additional investments under the Southern Neighborhood Economic and Investment Plan.
Importance of economic reforms
The EU has emphasized that continued economic reforms in Egypt will be crucial for unlocking these investments, particularly in clean technology and renewable energy. Egypt previously secured EUR1 billion of a EUR5 billion macro-financial assistance package in December, with negotiations still ongoing for the remaining EUR4 billion, expected to be finalized by June.
Šuica’s visit reaffirmed the EU’s commitment to supporting Egypt at this critical juncture and presented her vision for the New Pact for the Mediterranean. During her meeting with President El-Sisi, discussions focused on strengthening EU-Egypt relations, expanding trade and investment, and addressing illegal immigration. They also covered regional crises, including developments in Gaza, Libya, Syria, and Sudan.
Read more: Egypt receives first $1.03 billion EU funding installment
Focus on investment opportunities
In a separate meeting, Minister of Foreign Affairs Badr Abdelatty pushed for the approval of the second EUR4 billion assistance package and highlighted the Suez Canal Economic Zone as a key investment destination. He also emphasized Egypt’s role in ensuring European energy security and its readiness to attract more European investments.
Meanwhile, Prime Minister Moustafa Madbouly urged the EU to increase its financial and investment commitments, particularly in green hydrogen, renewable energy, and technology. Šuica, in response, reaffirmed the EU’s dedication to deepening its strategic partnership with Egypt and highlighted ongoing efforts to enhance economic cooperation.
