Egypt’s Al-Mashat discusses climate finance strategies, COP29 preparations with EU delegation

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Egypt’s Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, met with the Head of the European Union (EU) Delegation to Egypt, Christian Berger, to discuss joint priorities and strategies for strengthening the strategic partnership between Egypt and the EU.

The Wednesday meeting focused on enhancing climate finance strategies and preparations for the COP29 Climate Conference in Azerbaijan. They also discussed ongoing cooperation programs and technical support mechanisms.

Al-Mashat stressed that the meeting was part of a series of engagements with development partners to support the government’s commitment to achieving economic and social development, setting priorities in line with Egypt’s vision and government’s program for the next three years. She noted the importance of enhancing the role of development partners in providing financing to the private sector and implementing structural reforms.

During the meeting, they discussed ongoing efforts to finalise the procedures of the first phase of the Macro-Financial Assistance (MFA) program, which provides financial support to help stabilize Egypt’s macroeconomic situation. They also addressed the ongoing implementation of structural reforms in various sectors of the Egyptian economy and the provision of investment guarantees to encourage both local and foreign investment in priority sectors.

The two sides also discussed future projects and investments in sectors supporting Egypt’s low-emission development goals, as well as efforts to support Egypt’s national population strategy. Al-Mashat highlighted the ongoing technical assistance and information exchange programs between Egypt and the EU through the TAIEX mechanism.

The meeting also addressed cooperation within the framework of the “NWFE” program, for which a €35m grant was signed during the COP27 Climate Conference to support Egypt’s efforts in the energy pillar of the program.

“Several European institutions contributed to preparing the ‘Sharm El-Sheikh Guidebook for Just Financing’, reflecting our cooperation in implementing joint strategies to expand climate financing for the public and private sectors,” said Al-Mashat. “Green transformation and climate financing systems are a key part of the joint strategies with various international partners.”

Al-Mashat also highlighted the Ministry’s efforts to strengthen the Egyptian-European partnership through its chairmanship of two subcommittees: “Transport, Environment and Energy” and “Information Society, Audiovisual Media, Communications, Scientific Research, Innovation, Education and Culture.” She noted that the Ministry is preparing to hold meetings within the framework of these committees to discuss current and future cooperation.

The meeting also discussed technical support efforts provided by the European Union, including the TAIEX mechanism and workshops organised with the participation of entities and stakeholders. The SIGMA governance and management improvement program, which is being implemented in 2024 and 2025, supports the administrative reform plan, supports the effective implementation of public financial systems, and enhances technical support within the framework of Egypt’s Vision 2030, Al-Mashat noted.

The meeting concluded with a shared commitment to strengthen the strategic partnership between Egypt and the EU, which was formalised in a political declaration signed by President Abdel Fattah Al-Sisi and Ursula von der Leyen, President of the European Commission, during the Egyptian-European summit last March. The declaration included a financing package worth €7.4bn from the EU, including €5bn for macroeconomic stability, €1.8bn in investment guarantees, and €600m in development grants.