EU and Egypt to foster sustainable economic development in the country

December 20, 2016
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The European Union and Egypt today signed two EU assistance programmes that will strengthen social safety nets and foster inclusiveness and sustainable economic development in the country. Today’s signatures launch the ‘EU Facility for Inclusive Growth and Job Creation’, an instrument that will support of reform to improve the environment for business creation and to facilitate access to finance for Small and Medium-sized Enterprises (SMEs).
The ‘EU Facility for Inclusive Growth and Job Creation’ 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’ is expected to leverage EUR 420 million in total, including financing from European Financial Institutions, with an initial EUR 60 million EU grant. It consists of two components focusing on:
·      Supporting reforms to improve the environment for business creation and economic development, and
·      Facilitating access to finance for (SMEs) to add value in the economy and to generate jobs, particularly among youth.
“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,” saidEU High Representative for foreign affairs Federica Mogherini, who signed the agreements in Cairo together with Egyptian Minister for International Cooperation, Sahar Nasr.
Johannes Hahn, 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”.
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.
Read more
EU Neighbourhood Info Centre webpage – Egypt
EU Delegation to Egypt – website and Facebook page
Photo © EU Delegation to Egypt

Countries covered:

  • Egypt