The EU and Egypt to foster sustainable economic development in the country

Today's signatures launch the ‘EU i Facility for Inclusive Growth and Job Creation', an instrument that will leverage some €420 million in support of reforms to improve the environment for business creation and to facilitate access to finance for Small and Medium-sized Enterprises (SMEs).

The High Representative/Vice-President Federica Mogherini i, who signed the agreements in Cairo together with Egyptian Minister for International Cooperation, Sahar Nasr, said: “This is time for concrete cooperation. With these programmes, we will work together to create jobs for young people, support children attending school, including the most vulnerable. The priority for the European Union is working for the citizens of our region".

Johannes Hahn i, Commissioner for European Neighbourhood Policy and Enlargement Negotiations, said: "These programmes underscore the European Union's strong support to the people of Egypt. The current financial package will contribute to stabilisation in Egypt by promoting sustainable economic development and hence improving the future prospects of the population".

New ‘EU Facility for Inclusive Growth and Job Creation' launched

The programme will also be a key mechanism for the EU to support the implementation of Egypt's economic reform programme around which the International Monetary Fund approved a three-year funding under the Extended Fund Facility in November 2016.

The ‘EU Facility for Inclusive Growth and Job Creation', launched today is expected to leverage €420 million in total, including financing from European Financial Institutions, with an initial €60 million EU grant. It consists of two components focusing on:

• i. 

  Supporting reforms to improve the environment for business creation and economic development, and
• ii. 

  Facilitating access to finance for (SMEs) to add value in the economy and to generate jobs, particularly among youth.

SMEs play a crucial role in ensuring Egypt's economic stability in a challenging economic context by furthering growth, job creation, innovation and prosperity.

EU supports vulnerable Egyptian children

Federica Mogherini and Sahar Nasr also signed a modification to an existing financing agreement implemented by the World Food Programme. This modification will allow the provision of school meals to up to 500.000 most vulnerable children attending state primary schools in poor governorates from February 2017. This response is possible thanks to widening the scope and final beneficiaries of an ongoing contract with the World Food Programme.

For More Information

EU cooperation with Egypt

EU Delegation to Egypt

IP/16/4481