In a landmark move to accelerate Egypt’s transition to a sustainable and digitally driven economy, the European Union and the Egyptian government have launched a transformative initiative, the EU-Egypt Investment Guarantee for Development Mechanism.

Announced on Sunday, the platform is set to unlock up to €5 billion in investments by 2027, channeling resources into strategic sectors such as clean energy, sustainable agriculture, digital transformation, and water management.

According to a statement released on Monday, the mechanism will act as a magnet for high-impact projects, supporting Egypt’s green transition while also promoting economic resilience through the development of small and medium-sized enterprises (SMEs).

The initiative forms a cornerstone of the broader EU-Egypt Strategic and Comprehensive Partnership, which includes an initial €1.8 billion funding envelope. 

The financial backbone of the platform will be provided through the European Fund for Sustainable Development Plus (EFSD+), as well as contributions from European and international financial institutions working closely with EU member states and private investors.

Beyond national development goals, the platform is also aligned with the EU’s Global Gateway strategy, Europe’s vision to deliver sustainable and trusted connections globally in energy, transport, and digital infrastructure.