Cairo – Mubasher: Rania Al Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, has announced the disbursement of EUR 1 billion in concessional development financing from the European Union (EU), according to a press release.
The funding represents the first tranche of the second phase, which amounts to EUR 4 billion, of the Macro-Financial Assistance and Budget Support Mechanism (MFA) governed by a memorandum of understanding (MoU) signed in October 2025 during the first Egypt–EU Summit, which took place in Brussels.
The development financing from the EU under the MFA totals EUR 5 billion, with Egypt receiving the first phase that was worth EUR 1 billion in January 2025.
Meanwhile, the second phase comprises three tranches; the first tranche of EUR 1 billion, disbursed on 15 January 2026, while the second and third tranches are worth EUR in total and are scheduled for disbursement during 2026.
Al Mashat said this disbursement follows the announcement upgrading relations between Egypt and the EU, signed by Egypt’s President Abdel Fattah El-Sisi and Ursula von der Leyen, President of the European Commission, in March 2024.
The minister confirmed that the first tranche of the second phase is linked to the implementation of 16 structural reform measures that Egypt has already completed under the National Structural Reform Program, in coordination with relevant entities, including the Central Bank of Egypt (CBE), and the Ministries of Finance; Planning, Economic Development and International Cooperation; Investment and Foreign Trade; Electricity and Renewable Energy; Water Resources and Irrigation; Environment; and Industry.
This reflects ongoing efforts to secure concessional and lower-cost financing alternatives compared to international markets, in order to support the state budget and expand fiscal space for spending on development programs and projects.
Al Mashat further added that these reforms contribute to strengthening macroeconomic stability through improved public financial management, development of medium-term budgetary frameworks, enhanced financial risk management, and governance of public investment.
They also support competitiveness and the business environment by improving industrial land allocation mechanisms and streamlining investment licensing procedures.
In addition, the reforms advance the green transition through strengthening sustainable water resource management, developing waste-to-energy policies, improving energy efficiency, and protecting the natural capital of the Red Sea—thereby supporting the achievement of sustainable economic development.
According to the latest data, Egypt’s headline seasonally adjusted Purchasing Managers’ Index (PMI) remained above the 50 no-change mark in December 2025 for the second consecutive month, which reflected sustained improvement in the health of the non-oil private sector.
