Europe Egypt

Third EU-Egypt Water Dialogue - Private Sector & Entrepreneurs

BRUSSELS, 23 May 2024 / PRN Africa / -- Ladies and Gentlemen, Esteemed Guests,

I welcome you back to the EU-Egypt Water Dialogue for another addition. Today, as we gather in this historic city of Alexandria, we revisit our commitments and explore new avenues to intensify the strategic and comprehensive partnership between the European Union and Egypt, especially concerning water management and the critical role of the private sector.

In our previous meetings, we laid a robust foundation for collaboration. We identified the urgent need to mobilise resources to tackle the challenges posed by water scarcity exacerbated by the climate crisis.

Today, I am pleased to present significant advancements in our partnership, underscored by the recent agreement on the EU-Egypt strategic and comprehensive partnership which focuses, amongst others, on the mobilization of significant resources and innovative solutions to combat the challenges posed by water scarcity and climate change, and especially leveraging the strengths of the private sector to address critical water management issues in Egypt.

Central to this partnership is the utilisation of the European Fund for Sustainable Development Plus (EFSD+), which could be instrumental in creating financial tools that support Egypt's policy of divesting state-owned enterprises in water and agriculture, thus paving the way for greater private sector involvement. This approach aims to enhance water security and ensure sustainable economic growth and environmental sustainability, positioning the private sector as a key player in initiating and implementing transformative water management projects.

The private sector's involvement in Egypt's economy is more crucial than ever. With over 70% of employment provided by this vibrant sector, and nearly 70 % share of the GDP its role is not just participatory but also initiatory. We see the private sector as the birthplace of innovative ideas and programs. Our dialogues are designed as tools to develop these programs and meet the real-time needs on the ground. Your contributions are invaluable and integral to the success of our partnership.

With more than €600 million in grant, leveraging connectional funds of nearly €3.5 billion

in the sector with other European Financial Institutions we have been responding to these challenges since 2007. Our existing co-funded programmes extends 16 Egyptian Governorates providing nearly 30,000 permanent job opportunities, and nearly 650,000 short term job opportunities mainly in rural areas. This shall help in improving the quality of life for nearly 24 Million inhabitants in Egypt by year 2025. The amount could reach 4.4 billion EUR utilising Team Europe for Water Initiative pledges to NWFE-Water pillar projects.

Yet, with all what is being done we still believe there is need for more. That’s why a strategic and direct discussion with the private sector, investors, and international Financing Institutions is required, and that’s why we are here today.

The essence of our discussions revolves around harnessing public-private partnerships (PPPs) within the water sector, aligning closely with Egypt's state ownership policies, national strategies, and the visionary Nexus Water, Energy, Food Programme (NWFE). Our ambition is to leverage powerful tools such as blended finance, EFSD, alongside other risk-sharing mechanisms with EU financial institutions. This approach not only embodies our mutual aspirations for development but also demonstrates our innovative spirit in tackling the challenges at hand.

We recognise the indomitable spirit of entrepreneurs within the water sector. Today, we will showcase several promising projects incubated under the EU Aqua Dialogue. These projects, ranging from innovative water purification technologies to efficient irrigation methods, are ripe for scaling up through collaboration with private sector leaders and business associations.

To ensure these initiatives transform from ideas to sustainable programs, rigorous due diligence is key. This includes comprehensive technical, financial, environmental, and social studies. Our robust governance structure, meticulously designed to support these efforts, ensures that projects not only commence but thrive. This should give us all a sense of confidence in the sustainability of our partnership and the projects we undertake.

Our platform today—and those that preceded it—is not merely for exchanging ideas but forging a common understanding and a shared vision. It is about defining clear responsibilities and creating a collaborative matrix that spans project identification and formulation to implementation.

In closing, I urge you to actively participate in today's discussions. Let us leverage this platform to build on our achievements and push the boundaries of what we can accomplish together. Through our shared efforts, we can ensure a water-secure future for Egypt and set a benchmark for international cooperation.

Thank you once again for your commitment and dedication to this vital cause.

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SOURCE European External Action