The European Commission has disbursed €1 billion (~US$1.16bn) in concessional development financing to Egypt, the first of the expected three instalments under the ongoing €4 billion Macro-Financial Assistance (MFA).
- •The instalment is meant to help the North African country cover part of its ongoing financing needs and ensure macroeconomic stability.
- •It will also contribute to addressing Egypt's balance-of-payments pressures, including those stemming from Russia's war of aggression against Ukraine, the situation in the Middle East and the Houthi attacks in the Red Sea.
- •In March 2024, Egypt and the European Union signed a €5 billion MFA pact, with a short-term support of €1 billion disbursed at the end of 2024.
"This funding is going where it is needed most: economic stability, democracy, sustainability, and the rule of law. And as Egypt advances reforms and strengthens its economy, we continue to work together to make our shared Mediterranean home more secure and prosperous,” Ursula von der Leyen, President of the European Commission said.
According to Dr. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation Egypt has implemented a total of 38 reform measures under the National Structural Reform Program within the framework of the strategic partnership with the European Union.
This includes 22 measures under the first phase, disbursed in January 2025 for €1 billion, and 16 measures under the tranche disbursed this week. The remaining €3 billion will be disbursed in two tranches during 2026.
