Guido Clary Explores EIB’s Role in Advancing EU-Egypt Strategic Partnership Programs
In an exclusive interview with The Investor Today, Guido Clary, Head of EIB Regional Hub for North Africa and the Near East, shares insightful perspectives ahead of the highly anticipated EU-Egypt Investment Conference scheduled for June 29-30, 2024. This landmark event, hosted at the Al Manara International Conference Center in Cairo, aims to fortify the strategic partnership between the European Union and Egypt, spotlighting sustainable development, economic reforms, and substantial investment opportunities. Join us as we delve into the key themes and expectations surrounding this pivotal conference.
Q: Can you describe the European Investment Bank’s (EIB) role?
Guido Clary: The European Investment Bank is the lending arm of the European Union and is one of the largest multilateral financial institutions in the world. We play a critical role in financing European priorities, from climate and the environment to new technologies, health innovation, housing, transport, and support for SMEs. We collaborate closely with other EU institutions to foster European integration and support EU policies in 160 countries. Since our establishment in 1958, we have invested over one trillion euros worldwide, enabling countries to develop their economies sustainably and mitigate environmental impacts.
Q: What is EIB Global and what are its objectives?
Clary: In 2022, we established EIB Global, a separate entity dedicated to countries outside the EU. EIB Global serves as the development arm of the EU, supporting policy priorities such as the Sustainable Development Goals and responding to climate change and crises like the pandemic. We promote inclusive and sustainable growth in our partner countries through our technical and financial expertise. Last year, we signed agreements worth 88 billion euros, with more than half dedicated to climate and environmental projects.
Q: How did the EIB start its operations in Egypt?
Clary: We began operations in Egypt in 1979 with the Suez Canal project, which involved removing wrecks from 12 sunken ships and developing repair and maintenance facilities in Ismailia, Port Said, and the Suez area. This project demonstrated international cooperation, with support from countries like Germany, France, Norway, the USA, Italy, and Saudi Arabia.
Q: What are the key pillars of EIB’s work in Egypt?
Clary: Our work in Egypt focuses on three key pillars:
- Finance: Raising money at favorable rates and transforming it into loans, guarantees, and equity for excellent projects.
- Blending: Combining our resources with grants from the commission and other departments.
- Advisory: Providing resources to ensure projects are well-completed and meet shared objectives.
Q: Can you highlight some significant projects in Egypt?
Clary: Certainly. In the water sector, the EIB is the largest investor in Egypt, with over one billion euros invested. The Kitchener Drain Project, a 214 million euro initiative, aims to reduce pollution in the Nile Delta and improve water sanitation. We also funded the Cairo Metro Line 3 extension with 600 million euros, facilitating daily transport for millions in Cairo. Additionally, we supported expanding and upgrading the Gabal El Asfar wastewater treatment plant, which reduces pollution in the Mediterranean Sea via the Nile.
Q: How does the EIB support vulnerable populations in Egypt?
Clary: We provide microloans to migrant entrepreneurs, financing the most vulnerable parts of the population, including women and youth. This support is crucial for fostering inclusive economic growth and development.
Q: What is the significance of the strategic partnership between Europe and Egypt?
Clary: This partnership offers a unique opportunity for collaboration on economic investment and trade relationships. We believe it will attract more European investors to Egypt, leveraging the country’s skilled workforce, abundant natural resources, and strategic geographical position as a hub connecting Europe to Africa.
Q: Can you tell us about the European Investment Fund?
Clary: The European Investment Fund, a subsidiary of the EIB, specializes in innovative financing, focusing on SMEs and scaling up startups in disruptive technologies. This is crucial for driving economic growth and innovation.
Q: What are the main pillars of the EU-Egypt strategic partnership?
Clary: The partnership is based on six main pillars: political relations, economic stability, trade and investment, migration, and overall sustainable development. With a 7.4 billion euro package, including 5 billion in concessional loans, the EU aims to support Egypt’s reform efforts in collaboration with international partners.
Q: What are your expectations for the upcoming investment conference?
Clary: The upcoming investment conference will be a key moment for EU-Egypt relations, attracting institutional investors and private sector CEOs from Europe and Egypt. It will provide an opportunity to develop projects that drive economic growth and create a conducive environment for private sector development. Egypt is a perfect partner for the EU, offering a skilled workforce, renewable energy potential, and a strategic position as a global hub connecting Europe to Africa, paving the way for sustainable development and a green future.
