Latest news with #InvestmentGuaranteeMechanism
Egypt Independent
a day ago
- Business
- Egypt Independent
Talks underway to disburse 2nd tranche of European aid to Egypt, worth €4 billion
Egypt's Minister of Planning, Economic Development, and International Cooperation, Rania al-Mashat, held a negotiating meeting with the relevant national authorities and representatives of the European Commission to follow up on completing the economic component of the second phase of the Macroeconomic and Budget Support Mechanism, valued at four billion euros. The Friday meeting discussed the structural reforms required for the second phase, in preparation for a final agreement on the executive measures required by national authorities, in light of the European Parliament's vote to approve the final reading of the resolution, paving the way for the disbursement of the second tranche of financial support. Mashat said that the meeting comes as part of the ongoing coordination between the government and the Commission, regarding the implementation of the second phase of the Macroeconomic Support Mechanism, which builds on the one euro billion in funding provided during the first phase, which was disbursed in December 2024. She added that the Investment Guarantee Mechanism, launched during the 'Development Financing to Empower the Private Sector' conference, opens the door to new foreign investment through guarantees amounting to €1.8 billion. Mashat emphasized that the reforms implemented by the government are based on a clear vision to enhance competitiveness, support the private sector, and simplify the legislative and regulatory environment, contributing to attracting more local and foreign investment. She explained that the Macroeconomic and Budget Support Mechanism (MFA) is part of the European package announced during the Egypt-EU summit in March 2024. The package totals €7.4 billion, including five billion euros in direct budget support until 2027, €1.8 billion in investment guarantees, and €600 million in development grants. The European Council is expected to vote on the decision in the coming days, paving the way for the disbursement of the second tranche, which will support the government's efforts to implement its economic and development programs and enhance the Egyptian economy's ability to confront regional and international challenges. Edited translation from Al-Masry Al-Youm
Egypt Today
27-05-2025
- Business
- Egypt Today
Egypt Set to Launch €1.8 Billion EU-Backed Investment Guarantee Initiative in June
Egypt will roll out a new Investment Guarantee Mechanism in June 2025, in partnership with the European Union, offering guarantees worth €1.8 billion, according to Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation. Speaking at the Egypt-Sweden Business Forum, Al-Mashat explained that the initiative is designed to attract private capital and channel impact investments into key sectors, including energy, infrastructure, digital transformation, water, agriculture, and climate adaptation. The guarantees are expected to unlock further financing from European and global development banks, bolstering Egypt's investment climate and expanding private sector opportunities—particularly for Swedish enterprises. Al-Mashat also outlined recent economic reforms undertaken since March 2024, aimed at reinforcing macroeconomic stability, improving the business environment, and driving sustainable growth. These reforms have led to a strategic pivot toward non-oil manufacturing industries, with a notable rise in private investments even as public investment spending has decreased. Additionally, she underscored the importance of encouraging more direct investment from Swedish companies and strengthening technical cooperation through Egypt's 'NWFE' platform. Al-Mashat further noted Egypt's proactive engagement with the Carbon Border Adjustment Mechanism (CBAM) to ensure its exports remain competitive while supporting the global shift toward lower emissions and green growth.
