European Commission President Ursula von der Leyen arrived in Cairo on Saturday to kick off a two-day investment conference that is expected to see more than $42 billion in deals signed.
“At this conference, European companies have signed more than 20 new contracts worth more than 40 billion euros,” von der Leyen said at the meeting in the Egyptian capital.
The meeting came after a 7.4 billion euro ($7.9 billion) EU funding package was signed in March to help the debt-ridden North African country.
The strategic partnership agreement provides financial support in exchange for increased energy sales to Europe and curbing immigration.
“Today we signed the first 1 billion euros of macro-financial support,” the EU chief said, referring to the first part of the funding package.
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Von der Leyen said macro financial assistance – a series of medium- to long-term loans – “makes up the bulk of the 7.4 billion euros of EU financial assistance under this partnership.”
He added that a further 1.8 billion euros of European investment is expected as part of the agreement.
Egypt, the Arab world’s most populous country, is in desperate need of financial aid to weather a severe economic crisis marked by rapid inflation.
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In his opening remarks, Egyptian President Abdel Fattah el-Sisi said the conference aimed to “help European companies benefit from investment opportunities in Egypt.”
He said the event’s agenda would focus on “jobs, economic growth, green energy and renewable energy.”
Egypt, through its aid deal in March, is betting on its natural gas reserves to raise hard currency, while the EU has been seeking alternative sources of supply to Russian natural gas since the Ukraine war.
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“Egypt has ambitious goals to become a hub for clean energy, which is in Europe’s interests as well,” the EU chief said.
Human rights groups have criticised the migration conditions put in place by the EU-Egypt partnership after it struck several controversial deals with Libya, Tunisia and Mauritania to stem the flow of irregular migrants across the Mediterranean.
The US-based Human Rights Watch said the deal was part of “the EU’s cash-for-migration approach” and that it “strengthens authoritarian rulers while putting the work of human rights defenders, journalists, lawyers and activists at great risk.”
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Amnesty International said on Wednesday that any deal with the EU “must depend on human rights reforms.”
With neighbouring Gaza and Sudan embroiled in war, Egypt’s stability and prosperity is “essential for the entire region”, von der Leyen added.
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