Egypt secures EUR 90 mn loan from the EU, EIB to boost food resilience

Egypt is in line for a EUR 90 mn loan from the EU and European Investment Bank, which will go towards the Egypt Food Resilience project, according to a statement. This came during Commissioner for the Mediterranean Dubravka Šuica’s time in Egypt yesterday, during which she met with a number of high-level officials including President Abdel Fattah El Sisi.

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How will the funds be used? “The signing of the project will enhance Egypt’s food resilience by buying wheat and is a testament of the ongoing cooperation in addressing critical challenges, including food security,” the statement said.

It’s unclear if the funds are part of EUR 7.4 bn package of loans, grants, and investments the EU will be providing Egypt through to 2027. The package, announced last year includes loans to provide macro-financial assistance and EUR 1.8 bn additional investments under the Southern Neighborhood Economic and Investment Plan.

The EU sees economic reforms as key to unlocking the EUR 1.8 bn in investments pledged, the statement said. “The EU will continue to work with its partners to attract foreign investments in Egypt, including on clean technology and renewable energy … Continued progress will unlock both public and private investment.”

REMEMBER- Egypt received the first EUR 1 bn of a wider EUR 5 bn macro-financial assistance package late December and is expected to finalize its agreement with the EU to receive the remaining EUR 4 bn by June.

SHAPING THE NEW PACT FOR THE MEDITERRANEAN-

Why was Šuica in town? The commissioner was in Egypt to “reaffirm the EU’s commitment in supporting Egypt at this pivotal moment … and present her vision for the New Pact for the Mediterranean.” In addition to her meeting with El Sisi, she held talks with Prime Minister Moustafa Madbouly and Foreign Minister Badr Abdelatty.

Her meeting with El Sisi saw her emphasize the importance of the relationship between Egypt and the EU and the importance of boosting trade and investment cooperation. The two sides also discussed the issue of illegal immigration and the need to address its root causes as well as the latest regional developments — namely in Gaza, Libya, Syria, and Sudan.

Meanwhile, her meeting with Abdelatty saw the minister push for the approval of the second EUR 4 bn macro-financial assistance package, pitch the Suez Canal Economic Zone as a key investment hub, and highlight Egypt’s role in European energy security. Abdelatty highlighted Egypt’s readiness to attract more European investments.

And during hermeeting with Madbouly, the prime minister urges the EU to step up — not just with more funds — but with deeper investment ties, especially in green hydrogen, renewables, and tech. Šuica, for her part, underscored the EU’s commitment to deepening ties with Egypt, citing ongoing efforts to maximize the benefits of the strategic partnership agreement signed last year.

On Gaza: Madbouy and Šuica voiced the two sides’ readiness to work together to bring Egypt’s Gaza reconstruction plan to life.