The European Union and Egypt signed an agreement on Saturday under which the EU will invest up to 1 billion euros in the populous Arab country as part of a strategic partnership.
The €1 billion financing deal is the first tranche of a larger €7.4 billion package announced by European Commission President Ursula von der Leyen in March.
According to the committee, the money will be invested in sectors such as clean energy, manufacturing and food security.
The agreement was signed by EU Trade Commissioner Valdis Dombrovskis and Egyptian International Cooperation Minister Rania al-Mashat during an EU-Egypt investment conference in Cairo.
The conference, which will take place on Saturday and Sunday, aims to promote European businesses in Egypt.
Von der Leyen gave a speech at the conference, praising ties with Egypt.
“Today, Egypt and Europe are closer than ever before. This is a real win-win situation for Egypt and Europe,” she said.
The money will “guide and drive Egypt’s reform agenda,” von der Leyen said. “These reforms will promote a stronger business environment, attract more investment and create more good jobs in Egypt.”
“This conference marks the first implementation steps towards improving relations and reflects the commitment of Egypt and the EU to move beyond the phase of commitments 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 addressing common challenges in a way that delivers security and stability,” he said.
Egypt, which hosts an estimated 9 million refugees and migrants, has been hit by the months-long war between Israel and Hamas in the neighboring Gaza Strip.
The country of about 105 million people is in an economic crisis, including a currency crisis and sky-high inflation.
In an effort to stabilize its economy, Egypt announced in March that the future value of its weak currency would be determined by market forces. The decision to float the Egyptian pound resulted in a further devaluation.
On Saturday, al-Sissi, who has been in power since 2014, said Egypt was moving “with steady and rapid steps” towards creating a more sustainable economy.
