Our EUR 1.8 bn investment guarantee mechanism with the European Union has officially launched, Planning and International Cooperation Minister Rania Al Mashat announced at the Development Finance to Foster the Private Sector conference, according to a ministry statement. The mechanism is now accessible via the Hafiz platform, which provides financial and technical support to private enterprises.

The facility is expected to mobilize up to EUR 5 bn in public and private investments between 2024 and 2027, according to European Commission Southern Mediterranean and Middle East Director General Stefano Sannino. The platform is set to help channel investments into clean energy, wastewater management, sustainable agriculture, digital transformation, and SMEs, according to a European Commission statement.

REMEMBER- Last year, the EU pledged a EUR 7.4 bn package of loans, grants, and investments through to 2027. The package included the EUR 1.8 bn investment guarantee mechanism, along with EUR 5 bn in concessional loans to provide macro-financial assistance, and EUR 600 mn in grants.

The conference also saw the signing of a EUR 21 mn investment grant for the GreenSustainable Industries (GSI) program, inked between European Investment Bank and Planning and International Cooperation Ministry, according to a cabinet statement. The recently launched program is set to run through 2030 and provide financial and technical assistance for renewable energy projects, circular economy initiatives, and carbon footprint reduction measures.

We also got word that Egypt will receive USD 40 mn in performance-linked grants from the European Bank for Reconstruction and Development (EBRD) to help decommission 5 GW of outdated fossil fuel-powered plants under the energy pillar of the Nexus for Food, Water, and Energy initiative (NWFE), according to a project document on the lender’s website. The funding — backed by the bank’s High-Impact for Climate Action Fund and other international donors — will be disbursed in tranches tied to Egypt meeting verified decommissioning milestones.

Egypt has decommissioned 1.2 GW of thermal capacity under NWFE as of December 2024, with the ultimate goal of phasing out a total of 5 GW. The decommissioning program is designed to make space on Egypt’s grid for 10 GW of new renewable capacity, replacing outdated and underutilized plants with resilient, high-performance facilities that enhance grid reliability and long-term energy security.

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