Egypt has received €1 billion in concessional development financing from the European Union, marking the first tranche of the second phase of the EU’s macro-financial assistance (MFA), announced on Thursday by Minister of International Cooperation, Rania Al-Mashat. The disbursement follows the implementation of 16 economic and structural reforms aimed at strengthening macroeconomic stability, improving public finance management, enhancing the business climate, and supporting Egypt’s green transition.
The financing is part of a wider €7.4 billion EU support package announced in 2024, of which €5 billion is allocated under the MFA framework. Egypt received the first €1 billion tranche in January 2025, while the remaining €3 billion is scheduled to be released in two tranches in 2026. Al-Mashat said the concessional funding would ease short-term fiscal pressures, extend debt maturities, and create additional fiscal space for human development spending.
