EU signs €1bn financing deal for Egypt at investment forum

European Commission President Ursula von der Leyen announced a €42 billion investment by European companies in Egypt, along with financial support from the European Union to help the country’s troubled economy. The firms have signed over 20 new deals with Egypt, aiming to boost investment and privatize the economy to make it more resilient amidst the challenges of COVID-19 and high inflation.

Stressing the significance of a strong Egypt to the EU, von der Leyen highlighted the need for a partnership based on trust and certainty. The investment is expected to accompany Egypt’s reform agenda, creating a more conducive business environment and generating job opportunities for the country.

Egypt has also received financial backing from the UAE, IMF, and World Bank, easing economic pressures caused by regional conflicts. The EU pledged €7.4 billion in support, with the first €1 billion already allocated for implementation.

Rights groups advocate for human rights conditions

Human rights organizations have criticized the deals, urging the EU to tie financial assistance to improvements in human rights and the rule of law in Egypt. The EU’s partnership with Egypt faces scrutiny over concerns regarding respect for human rights and fundamental freedoms in the country.