Minister of Planning, Economic Development, International Cooperation, Rania Al-Mashat, sais that this €1 billion tranche is directly linked to the completion of 16 structural reform measures, implemented in coordination with key state institutions, including the Central Bank of Egypt and several economic ministries.
Egypt has received €1 billion in concessional financing from the European Union, marking the first tranche of the second phase of the Macro-Financial Assistance and Budget Support Mechanism (MFA), following the successful implementation of a new package of structural reforms under the National Structural Reform Program.
Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, said that this €1 billion tranche is directly linked to the completion of 16 structural reform measures, implemented in coordination with key state institutions, including the Central Bank of Egypt and several economic ministries.
These reforms build on earlier measures completed during the first phase of the MFA program, bringing the total number of implemented reforms to 38 measures so far.
The MFA mechanism is designed to provide budget support at concessional terms, helping Egypt reduce short-term financing pressures, extend debt maturities, and create fiscal space for priority spending, particularly in human development and social protection.
A significant share of the reforms focused on macroeconomic stability and resilience, including enhanced coordination with the International Monetary Fund on foreign-exchange indicators, strengthening domestic revenue mobilization, and further activating amendments to the Public Financial Management Law.
Key measures also included advancing the Medium-Term Budget Framework, publishing fiscal strategy papers aligned with international best practices, strengthening financial risk management, and improving public investment governance through OECD-aligned assessments and reviews.
Reforms under the second pillar targeted structural bottlenecks facing investors.
Measures included applying competitive bidding mechanisms for industrial land allocation, launching an electronic investment licensing platform, and developing plans to expand digital licensing and payment services to facilitate domestic and foreign investment.
These steps aim to increase transparency, reduce regulatory complexity, and attract demand-driven foreign direct investment, reinforcing Egypt’s private-sector-led growth agenda.
The third reform pillar focused on sustainability and climate alignment. Measures included new regulations to improve water resource management, approval of a revised feed-in tariff for waste-to-energy projects, and cabinet approval to declare the Red Sea marine ecosystem a protected area, safeguarding natural capital critical to tourism and long-term growth.
Additional reforms strengthened national energy-efficiency governance by expanding the mandate of the Energy Planning Unit, supporting Egypt’s transition toward a greener and more resilient economy.
