Egypt secures €4B European loan to support economic reforms

Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, announced that Egypt will receive €4 billion in European funding to support the national economy. The loan, which will be disbursed in three installments, aims to bolster the country's fiscal balance.

Last week, Egypt and the European Union signed a Memorandum of Understanding regarding the second phase of the Macro-Financial Assistance (MFA) program, valued at €4 billion.

Al-Mashat highlighted that the funding is aligned with Egypt's structural reform program, which was outlined as part of the national economic development narrative in early September.

The reforms are also in line with ongoing cooperation with the International Monetary Fund (IMF) and the World Bank, with significant support from the European Union aimed at reinforcing economic transformation, particularly in enhancing private sector participation.

The minister emphasized that economic growth and job creation are top priorities for the government moving forward, with expectations that 2026 will mark a significant positive shift in Egypt's economic performance.

Al-Mashat also noted that debt swap programs continue to be a key part of Egypt's strategy, including the completion of a €50 million swap with Germany and ongoing negotiations for new tranches. Additionally, agreements with Italy and the UAE, especially the prominent debt-for-investment deal with the UAE in the Ras Al-Hikma area, are being finalized.

She stressed that Egypt is experiencing increasing investment flows in infrastructure, tourism, health, mining, and renewable energy sectors, supported by investors from Gulf and European nations.

The minister concluded by emphasizing that improving macroeconomic stability is enhancing investor confidence and opening broader investment opportunities within Egypt's evolving business environment.