European investors will discuss and review a wide array of investment opportunities in various fields in Egypt during the two-day conference, that will be held under the title "Unleashing Egypt's Potential in a Rapidly Changing World."

The EIB – the European Union's investment arm – is the world’s largest international public bank and the largest international financier of private-sector investment in Egypt in recent years.

According to the latest annual report by Egypt’s Ministry of International Cooperation, the EIB provided $2.8 billion for private investment in Egypt between 2020 and 2023.

Clary revealed to Ahram Online that the international financial institutions (IFIs), including the EIB, are committed to a sum of €1.8 billion as part of a €7.4 billion financing package the EU has committed to Egypt in March of this year.

Ahram Online: How does the EIB see Egypt as an operations market?

Guido Clary: The partnership between Egypt and the EIB started 45 years ago. The first project dates to 1979, when the EIB supported deepening and widening the Suez Canal. This also included removing the wrecks of 12 ships sunk during the earlier conflicts and the development of new ship repair and maintenance facilities in Ismailia, Port Said and Port Tawfiq.

The project was also backed by France, West Germany, the UK, Norway, Italy, the US, Japan, Kuwait, Abu Dhabi, Saudi Arabia and the Islamic Development Bank.

This is a very good example, highlighting how joining forces in a project of strategic relevance at that time helped improve the resilience of the country and its ability to connect different markets through shipping and trade. Today, Egypt is the largest country of operation for the EIB outside the EU.

In addition, the European Union and Egypt have recently agreed to elevate their relationship to the level of a strategic and comprehensive partnership, a significant and rare step to drive cooperation and shared interests. As the investment bank of the European Union, we are here to use our full capacity and firepower to support projects and initiatives that aim to achieve sustainable development and green energy growth. 

AO: What are the key sectors in Egypt that the EIB is interested in?

GC: We have a well-diversified portfolio and we are active in key sectors that drive sustainable development and have a positive impact on the Egyptian citizen and the environment. As a green bank, every project that we support has to be assessed in terms of its carbon impact.

The European Investment Bank has the leading role in financing large projects in transport and energy and is also heavily invested in the water and the private sector by providing loans through partner commercial banks to small and mid-size businesses.

More than 50 percent of our portfolio is dedicated to SMEs; supporting small and micro-entrepreneurs and often allowing underserved portions of the population like women and youth to have access to credit.

In transport this year, under the NWFE program, we are preparing a new framework loan on three key projects: the extension of the Cairo Metro Line 1, the rehabilitation and upgrade of the obsolete urban line in Abu Qir, and the rehabilitation of the Sherbin-Qellin Egyptian railway.

In energy, on 28 May, we marked the Egyptian government the inauguration of a 252 MW wind power plant in the Gulf of Suez that is poised to produce enough electricity to power around 400,000 households in Egypt.

The EIB had injected 94 million euros or approximately 30 percent of the plant’s total financing. This year, we also expect to launch a result-based loan in the water sector.

AO: What is the role the bank will play in terms of the €7.4 billion finances the EU has committed to Egypt?

GC: We are the EU Bank and we will contribute to €1.8 package, out of the total package committed. The package represents the total contribution of the international financial institutions (IFIs), in coordination with the EU.

We are expecting to inject new funds, particularly in the energy and transport sectors.  

AO: How does the bank perceive the steps Egypt has taken to raise the private sector share in the country’s economy?

GC: We think that Egypt is taking steps in this direction. This is a long-term journey and we are confident that we will see a more vibrant private sector in the coming years. It might be relevant to highlight here that the EIB has been a key supporter of the private sector, with a total contribution of $2.8 billion in the years 2020 to 2023. A substantial amount of this money went towards supporting micro-entrepreneurs and small businesses.  

AO: In your opinion, does the investment climate in Egypt need to be more attractive?

GC: The macroeconomic stabilisation was a success with the introduction of the floating exchange rate.

We want to see more measures in this direction to help attract foreign investment, which include privatization, creating a level-playing field and minimizing red tape and administrative hurdles.

We are also eager to play our part in providing support for green investment and sustainable growth. This is a long-term partnership that started many years ago and we are here to play our part in supporting the Egyptian government.