Al Mashat Receives EU Commissioner for the Mediterranean Affairs

Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, received Dubravka Šuica, the EU Commissioner for Mediterranean Affairs, in the presence of Angelina Eichhorst, EU Ambassador to Cairo, along with officials from the European Investment Bank and the European Commission. The meeting discussed the future of economic relations between the Arab Republic of Egypt and the European Union, in light of the strategic partnership between the two sides.

At the beginning of the meeting, H.E. Minister Al-Mashat welcomed the EU Commissioner for Mediterranean Affairs and congratulated her on assuming her new position. The Minister explained that the establishment of this post reflects the EU's commitment to deepening relationships with Mediterranean countries based on shared development priorities and reinforcing the common destiny of the region’s countries to face mutual development challenges. In this context, H.E. Dr. Al-Mashat emphasized that Egypt has a key role in strengthening the Euro-Mediterranean partnership, based on its close ties with the countries in the region.

H.E. Dr. Al-Mashat highlighted the strategic and comprehensive partnership between the Arab Republic of Egypt and the European Union, marking a new phase of cooperation aimed at enhancing bilateral relations across various areas of common priority through six key pillars: strengthening cooperation in politics, economy, trade, security, migration, and human development.

H.E. Minister Al-Mashat stressed the need to move forward with implementing these pillars to enhance mutual development priorities. She noted that the positive political momentum in Egyptian-European relations elevates the development of economic and investment ties within the framework of shared economic development priorities between Egypt and the EU.

H.E. Dr. Al-Mashat added that the development financing allocated within the framework of the strategic and comprehensive partnership includes a total of 7.4 billion Euros to support Egypt during the period from 2025-2027, aiming to support economic stability, stimulate investment, and support key sectors contributing to sustainable development.

H.E. Minister Al-Mashat confirmed that the Ministry of Planning and Economic Development is currently coordinating with the relevant ministries and authorities to conduct extensive consultations to design programs and projects to be funded under the grants allocated for cooperation during the 2025-2027 period. This aims to establish a clear framework that ensures the maximum benefit from European funding and aligns investments and grants with Egypt’s national priorities.

H.E. Dr. Al-Mashat also outlined the efforts made by national authorities to implement structural reforms related to the first phase of the "Macro-Economic Support and Budget Support Mechanism," which the EU has provided funding of 1 billion Euros for. The meeting also included discussions on the second phase of this mechanism, valued at 4 billion Euros.

The meeting reviewed mechanisms for integrating the private sector into the investment system and utilizing investment guarantees offered by the EU. These guarantees amount to 1.8 billion Euros under the European Fund for Sustainable Development Plus (EFSD+), which was announced during the European Investment Conference. Egypt will benefit from these funds to support sustainable development initiatives and strengthen the private sector's role in driving economic development.

In this regard, H.E. Minister Al-Mashat reiterated that work is underway to launch the investment guarantee mechanism for development between Egypt and the EU. This aims to activate European investment guarantees of 1.8 billion Euros to mobilize around 5 billion Euros in investments in green transformation sectors and other shared priority areas.

The meeting also touched on the ministry’s efforts to empower the private sector through the "HAFIZ" platform, which provides financial and technical support and serves as an integrated platform offering various services from development partners to the private sector, including large, small, medium enterprises, and startups.

H.E. Dr. Al-Mashat referred to the ongoing cooperation programs within blended financing mechanisms that provide essential support to various vital sectors. This includes the development of transport infrastructure, enhancing transportation network efficiency, supporting water desalination projects, improving irrigation and sewage networks, promoting sustainable agricultural development, and providing funding for small farmers. The programs also support entrepreneurship and facilitate access to financing for startups, expand clean energy projects to enhance environmental sustainability, and implement programs aimed at the most vulnerable groups to enhance social solidarity. Furthermore, these programs enhance transparency, build institutional capacities, and support civil society organizations.

Regarding regional cooperation, the meeting discussed ways to enhance regional collaboration, which plays a crucial role in strengthening cooperation between countries in many sectors, particularly among Mediterranean basin countries, in alignment with global economic shifts, green transition, and the use of digitalization and artificial intelligence. A number of newly funded European Commission programs were also reviewed, which Egypt could benefit from in various areas.

H.E. Minister Al-Mashat underscored the ministry's efforts to advance the government’s economic and structural reform program. One of its most important pillars is governance and improving the efficiency of public investments in order to make room for the private sector and increase its participation in development efforts.