The Egyptian government has signed two agreements with the European Investment Bank (EIB) totaling USD 137.5 million, a significant injection of capital aimed at accelerating private sector growth across the country. The agreements were signed during a visit to Egypt by Ms. Gelsomina Vigliotti, Vice President of EIB, and witnessed by Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation.
This strategic investment will be channeled through regional funds to support local companies in high-impact sectors, including healthcare and technology, enhancing sustainability and fostering deeper economic integration between Egypt and Europe.
Strategic Allocation to High-Impact Sectors
The first agreement, facilitated by EIB’s development arm EIB Global, commits USD 80 million to the RMBV III North Africa Fund. This investment is designed to provide crucial financing and value-added support to local companies, unlocking new growth opportunities within Egypt and across the region.
The injection is expected to mobilize over USD 300 million in total investments, targeting private sector companies under a regional strategy focused on North Africa. This initiative aims not only to bolster local enterprises but also to strengthen economic ties between Egypt and the European Union.
Bolstering Healthcare and Pharmaceutical Innovation
In a second key agreement, the EIB will invest USD 37.5 million in the Alta Semper II Fund, alongside a USD 20 million investment from the International Finance Corporation (IFC). This capital is earmarked to fuel the growth of pharmaceutical and healthcare companies across Africa, with a primary focus on North Africa.
The fund will support innovation in areas such as medical equipment and healthcare technologies. This investment is projected to mobilize approximately USD 150 million for the healthcare sector, promoting sustainability and enhancing trade relations between the EU and Africa.
Enhancing National Infrastructure
Alongside the private sector investments, Minister Dr. Rania Al-Mashat signed two grant agreements with the EIB worth EUR 2.7 million. These grants will provide essential advisory services for critical infrastructure projects, including the extension of Cairo Metro Line 1 and the development of water treatment plants in Alexandria and Damietta.
According to the Minister, these agreements build on a strong partnership, noting that from 2020 to 2024, the EIB has already channeled over EUR 1 billion into 20 local and regional investment funds, benefiting a diverse range of Egyptian SMEs.
About European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. EIB Global is the EIB Group’s specialized arm dedicated to increasing the impact of international partnerships and development finance.
Source: Waya
