The EU-Egypt Investment Conference held in Cairo for the two days 29 – 30 June 2024 saw the signing of more than 20 Memoranda of Understanding (MoUs) worth some 40 billion euros between Egypt and EU firms.
The conference materialised the Egypt-EU Strategic and Comprehensive Partnership signed by the two parties last March, covering political relations, economic stability, investments and trade, and migration and security.
The recent conference focused on opportunities for investment in Egypt, especially in renewable energy, water management, transport, power generation, digital transformation, green transition, construction, chemicals, shipping, aviation, automotive, and on supporting Egypt’s budget and structural economic reforms.
Notable were MoUs that covered green hydrogen; green industrial projects; development grants; grain storage; technical support projects; and others.
The EU’s investment arm, the European Investment Bank (EIB), committed 600 million euros in new finances mainly to the private sector.
Refugees and asylum seekers
On the sidelines of the conference, Prime Minister Mostafa Madbouly called for “a clear cooperation mechanism” between the Egyptian government and development partners in sharing the burden of Egypt hosting 9 million migrants and refugees.
The PM introduced the problem during a meeting with Anna Bjerde, the World Bank’s Managing Director of Operations, on the second day of the conference.
A Cabinet statement in the wake of the meeting informed that Ms Bjerde acknowledged the burdens endured by the Egyptian government to host non-Egyptian guests and provide their needs regarding health care, education, and accommodation.
Mr Madbouly’s remarks reiterated a statement issued by the Egyptian Foreign Ministry on World Refugee Day, 20 June 2024, focusing on the need to intensify international efforts to ensure the fair implementation of the principle of equal sharing of burden and responsibility towards refugees. He had earlier said while in Riyadh at a World Economic Forum meeting in April 2024 that it costs Egypt some USD10 billion annually to accommodate the refugees and migrants.
Official figures reveal that refugees and asylum seekers hosted by Egypt come from 133 countries. At some 4 million, the Sudanese form the largest group, with Syrians second at 1.5 million, and Yemenis and Libyans a close third at one million each. Together, they constitute 80 per cent of the refugees living in Egypt, according to the International Organisation for Migration (IOM).
Recently, the Egyptian government allowed foreigners residing in Egypt with no valid residencies to legitimise their stay, provided they have an Egyptian host and pay USD1,000 in administrative fees.
Those who failed to legalise their status by 30 June stand to lose access to State-provided services to foreign residents.
Strategic, comprehensive partnership
The conference opening session saw words delivered by both Egypt’s President Abdel-Fattah al-Sisi and EU President Ursula von der Leyden.
“Relations between Egypt and the European Union have witnessed positive development across various fields of cooperation,” President Sisi said. “This progress was crowned with the signing of the political declaration to elevate the relation between both sides to the level of strategic and comprehensive partnership last March.
“We are gathered for the second time, in a short span of time, to witness the convening of the ‘Egypt-EU Investment Conference 2024’, which represents the initial steps towards the implementation of the elevation of relations and also reflects the commitment of Egypt and the European Union to moving beyond the stage of pledge to the stage of implementation.
“The strategic partnership between Egypt and the European Union included six axes, on top of which was the axis of investment. The two sides committed to enhancing cooperation across various priority economic sectors, including trade, energy, infrastructure, sustainable transport, agriculture, food security, digital transformation, water security, water and sanitation networks, as well as small medium and micro-sized enterprises. “These are among other vital sectors expected to mobilise European investments, estimated at approximately 5 billion euros, in addition to investment guarantees worth 1.8 billion euros for the private sector. This shall contribute to increasing foreign direct investment and enabling the European business community to benefit from the investment potential in Egypt. At the same time, it shall strengthen the position of the European Union, being the Egyptian economy’s prominent trade and investment partner.”
Challenging times
“Holding this investment conference,” President Sisi continued, “comes at an extremely critical time, in light of the successive international and regional crises that have cast a very negative shadow and multiple challenges and economic burdens on all countries at various levels. This requires continuous support and coordination between Egypt and its partners in Europe to sustainably address these challenges, especially after Egypt has proven it is a reliable partner in facing common challenges and in a way that achieves security and stability in our regional neighbourhood.
“Egypt is taking steady and rapid steps on the path of change and reform for a more sustainable economy. In its pursuit to achieve that, the State has undertaken a number of reforms to further empower the private sector, increase the competitiveness of the Egyptian economy, support green transition, and mobilise foreign direct investment.
“Today’s conference will give European countries and economic entities the opportunity to explore the available investment potential in Egypt, especially in areas that stimulate economic growth and employment, such as the sectors of communications and information technology, manufacturing industries, clean and renewable energy production, and the circular economy. This is in addition to promoting Egypt as a regional hub for supply chains for European companies and a hub for the transfer and trade of renewable and green energy, in light of Egypt’s geographic proximity to Europe and its strategic location, it also sheds light on areas that attract investment in Egypt, such as the Suez Canal Economic Zone.”
100 days on…
For her part, President con der Leyen gave a word that said: “It has been only 100 days since we opened a new era of friendship between Egypt and the European Union. And today, we are already reaping the fruits. President El-Sisi, thank you so much for your splendid hospitality. Last March, you welcomed me and five other European leaders, here in this beautiful timeless city, and the two of us signed a new Strategic and Comprehensive Partnership. Of course, this new agreement builds on profound ties between our people, and decades of cooperation between Egypt and the European Union. Europe is already Egypt’s largest trade partner and investor, accounting for 40 per cent of your foreign direct investments. And with our new agreement, we have decided to reach a new level of strategic engagement between us. You are a gateway to Europe, between Africa and the Middle East, and between the Mediterranean and the Indo-Pacific. So your stability and prosperity are essential for an entire region.
“Today, we come here to Cairo, accompanied by European companies, investors and financial institutions. Indeed, we have over 1,000 company representatives in the room eager to hear from us on new business opportunities But of course, we are also eager to hear from you what further actions you need from us to facilitate investments.
As the European Union, we are making good on the commitments we made just three months ago. Let me mention three of them: First, more financial assistance. Second, more investments in strategic sectors. And third, more skills for Egyptian workers.”
Clean energy hub
The EU President went on: “On my first point. In March, we announced a major financial and investment package worth 7.4 billion euros. Today, we sign the first 1 billion euros in macro-financial assistance. This package will accompany and incentivise Egypt’s reform agenda that the private sector needs. And these reforms will foster a stronger business environment, attract more investment and create more good jobs in Egypt.
“Second, with our Strategic Partnership we have committed to step up our strategic investments in Egypt. Now we aim to mobilise new European investments worth 1.8 billion euros. This will go to the strategic sectors we identified together last March. Let me just give one example. Egypt has the ambitious goal of becoming a clean energy hub. And this is in Europe’s interest too. Such a clean energy hub would put Egypt at the centre of the Mediterranean crossroads, with new corridors to transport clean electricity and hydrogen, but also creating new clean-tech value chains that span across our region, from the Gulf to Europe. Today, we rely on batteries, solar panels and wind turbines that are mostly produced far away. What if we joined forces to produce them in our common region? We are now investing in this vision, like never before.
“To achieve this, we also have to strengthen the skills that Egyptians need to thrive in the economy of tomorrow. This is my third and last example. Today, we are signing a new project, worth 25 million euros, to provide clean-tech and digital training to young Egyptians. So that companies find skilled personnel, and Egyptians can find good jobs and make their living.
Private sector on board
“We are backing our new partnership with substantial public investments. But what truly makes a difference is that the private sector is also on board. With our Strategic Partnership we have created a framework of trust and of certainty about the future direction of our relationship. This is exactly the message the private sector needs and expects, rightly so, to hear from us. Our commitment to support Egypt in its reforms has already sparked private sector action. The response we have received since last March has been overwhelming. At this Conference, European companies are signing over 20 new deals or MoU’s with Egyptian partners, which are worth over EUR 40 billion. We have companies in sectors ranging from hydrogen to water management, from construction to chemicals, from shipping to aviation and automotive. You cover all the priorities that we have set out in our new partnership. And this is crucial.
“Thank you for the trust you are placing in this partnership. Because we need each and every one of you to make this partnership successful. Our public investments can unlock new business opportunities for you. But only you have the know-how to set up new industries here in Egypt, or to train local workers. It is you, in the business sector, who are pioneering the technologies of the future, and we need you.”
Win-win
“In just 100 days, we have already brought new energy into our partnership. And this is just the beginning. Today, Egypt and Europe are closer than ever before. So this is a true win-win partnership, for Egypt and for Europe alike, for the people and for business, and of course for the common good.”
Watani International
1 July 2024