Funding supports macroeconomic stability and enhanced public financial management for Egypt

Egypt’s Ministry of Planning, Economic Development, and International Cooperation announced the disbursement of EUR1 billion ($1.16 billion) in concessional development financing from the European Union (EU). This funding constitutes the first tranche of the second phase of the Macro-Financial Assistance (MFA) mechanism.

This financing is part of a EUR5 billion ($5.82 billion) package signed last October during the first Egypt-EU Summit in Brussels, which resulted in the Memorandum of Understanding (MoU) for the second phase of the Macro-Financial Assistance and budget support for the Arab Republic of Egypt from the European Union. The first disbursement was made to Egypt in January 2025.

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Executing 16 key structural reforms

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stated that the first tranche of the second phase is linked to 16 structural reforms already implemented by Egypt within the National Structural Reform Program (NSRP). These reforms were carried out in coordination with relevant authorities, including the Central Bank of Egypt (CBE) and the Ministries of Finance; Planning; Investment and Foreign Trade; Electricity and Renewable Energy; Water Resources and Irrigation; Environment; and Industry.

She further added that these reforms contribute to enhancing macroeconomic stability by improving public financial management and developing medium-term budget frameworks, managing fiscal risks and public investment, and supporting competitiveness and the business environment. This support includes improving industrial land allocation mechanisms and streamlining investment licensing procedures. Additionally, the reforms drive the green transition by enhancing sustainable water resource management, developing waste-to-energy policies, improving energy efficiency, and protecting the Red Sea’s natural capital to support sustainable economic development.

The Minister explained that a total of 38 reforms have now been implemented under the National Structural Reform Program within the framework of the strategic partnership with the EU. This includes 22 measures under the first phase—disbursed in January 2025 at a value of EUR1 billion—and 16 measures under the current tranche.