Egypt has received 1 billion euros ($1.16 billion) in concessional development financing from the European Union under its assistance mechanism, a government minister said on Thursday.
According to a news agency Xinhua, Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said the funding represents the first tranche of the second phase of the EU’s macro-financial assistance (MFA) program and follows Egypt’s implementation of 16 economic and structural reforms, according to a statement from her ministry.
Al-Mashat said the reforms are designed to strengthen macroeconomic stability by improving public finance management, enhancing medium-term budget frameworks, and strengthening the management of fiscal risks and public investment.
She added that the measures also aim to boost competitiveness and improve the business environment by simplifying industrial land allocation and streamlining investment licensing procedures.
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She said the reform program also supports Egypt’s green transition, including efforts to promote sustainable water resource management, advance waste-to-energy policies, improve energy efficiency, and protect the Red Sea’s natural capital as part of broader sustainable economic development goals.
Al-Mashat said concessional financing mechanisms that support the state budget play a crucial role in easing short-term financial pressures, extending debt maturities, and creating additional fiscal space for spending on human development programs.
The funding is part of a wider financial support package announced by the European Union in 2024, under which Egypt is set to receive a total of 7.4 billion euros.
Of this amount, 5 billion euros is being provided through macro-financial assistance. Egypt received the first tranche of 1 billion euros in January 2025.
In a previous statement on Tuesday, Al-Mashat said the remaining 3 billion euros under the MFA program are expected to be disbursed in two tranches during 2026.
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Image Credit: Reuters
