The European Union and Egypt signed an agreement on Saturday that will allow the EU to invest up to one billion euros ($1.1 billion) in the populous Arab country as part of a strategic partnership.
The €1 billion financing deal is the first tranche of a larger €7.4 billion package that European Commission President Ursula von der Leyen announced in March.
The money will be invested in sectors including clean energy, manufacturing and food security, according to the commission.
The agreement was signed by EU Trade Commissioner Valdis Dombrovskis and Egyptian Minister for International Cooperation Rania al-Mashat at an EU-Egypt investment conference in Cairo.
The conference, which takes place on Saturday and Sunday, aims to promote ventures in Egypt by European companies.
Von der Leyen spoke at the conference, praising ties with Egypt.
“Today, Egypt and Europe are closer than ever, so this is a true win-win partnership for both Egypt and Europe,” she said.
The money will “accompany and encourage Egypt’s reform agenda,” von der Leyen said. “These reforms will promote a stronger business environment, attract more investment and create more good jobs in Egypt.”
“This conference marks the first implementation steps towards elevating relations and reflects the commitment of Egypt and the EU to move beyond the commitment phase to the implementation phase,” said Egyptian President Abdel Fattah al-Sissi in a speech at the same conference.
“The convening of this conference comes at a very delicate time, in the midst of successive international and regional crises. Egypt has proven to be a reliable partner in facing joint challenges in a way that achieves security and stability,” he said.
Egypt, which hosts around 9 million refugees and migrants, has been affected by the months-long war between Israel and Hamas in the neighboring Gaza Strip.
The country of around 105 million people has been in economic crisis, including a currency crisis and rising inflation.
In an attempt to stabilize the economy, Egypt announced in March that the value of its weak currency would be determined by market forces in the future. The decision to float the Egyptian pound resulted in a further devaluation.
On Saturday, al-Sissi, who has been in office since 2014, said Egypt is moving forward “with firm and rapid steps” to create a more sustainable economy.
