Egypt has received one billion euros (US$1.16 billion) in concessional development financing from the European Union, marking the first tranche of the second phase of the bloc’s macro-financial assistance programme, the government said on Thursday.
The funding follows the implementation of 16 economic and structural reforms agreed between Egypt and the EU, according to Planning, Economic Development and International Cooperation Minister Rania al-Mashat.
The reforms are aimed at strengthening macroeconomic stability through improved public finance management, enhanced medium-term budget planning and stronger oversight of fiscal risks and public investment, the minister said in a statement.
They also target improvements to Egypt’s business environment, including measures to streamline industrial land allocation and simplify investment licensing procedures.
Al-Mashat said the reform agenda supports Egypt’s green transition by promoting sustainable water resource management, advancing waste-to-energy policies, improving energy efficiency and protecting the Red Sea’s natural resources as part of broader sustainable development goals.
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She added that concessional financing linked to the state budget helps reduce short-term financing pressures, extend debt maturities and create additional fiscal space for spending on social and human development programmes.
The disbursement is part of a wider EU financial support package announced in 2024, under which Egypt is set to receive a total of 7.4 billion euros.
Of that amount, five billion euros have been allocated through macro-financial assistance. Egypt received the first one-billion-euro tranche in January 2025.
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The remaining three billion euros are expected to be disbursed in two tranches during 2026, the minister said earlier this week.
Egypt has been implementing a series of economic reforms as it seeks to stabilise its economy, boost foreign investment and address fiscal and external imbalances amid high inflation and currency pressures.
