The announcement was made during a joint press conference held in coordination with the visit of Gelsomina Vigliotti, Vice President of the European Investment Bank (EIB), to Egypt.
The Minister detailed that Egypt has now completed a total
of 38 reforms within its National Structural Reform Program (NSRP) as part of
its strategic partnership with the EU. This progress includes: Phase I (January
2025): 22 reforms completed, resulting in a €1 billion disbursement; and Phase
II, Tranche 1 (Current): 16 reforms completed, securing the upcoming €1 billion
disbursement. The remaining €3 billion of the €5 billion MFA package is
scheduled for disbursement in two tranches throughout 2026.
Dr. Al-Mashat emphasized that the MFA mechanism, comprising
over 100 nationally designed policies, aims to provide concessional, low-cost
financing compared to international market rates. This support is vital for
bolstering the state budget and expanding fiscal space for comprehensive
national development projects.
The 16 reforms implemented this year were executed through
high-level coordination between the Central Bank of Egypt and the Ministries of
Finance, Investment, Electricity, Water Resources, Environment, and Industry.
These reforms focus on three strategic pillars:
Macro-Fiscal Stability: Enhancing public financial
management, developing medium-term budget frameworks, and improving public
investment risk management;
Competitiveness & Business Climate: Streamlining
industrial land allocation and simplifying investment licensing procedures to
attract private capital;
The Green Transition: Advancing sustainable water
management, waste-to-energy policies, energy efficiency improvements, and the
protection of the Red Sea’s natural capital.
"This development reflects the depth of the
Egyptian-European relationship and the momentum generated by our political
leadership," stated Dr. Rania Al-Mashat. "The MFA mechanism is a
cornerstone of our efforts to solidify macroeconomic stability, improve the
investment climate, and accelerate Egypt’s transition toward a sustainable
green economy."
The Memorandum of Understanding for this €4 billion second phase was originally signed during the Egypt-EU Summit in Brussels on October 22, 2025, signaling the European Union’s continued confidence in Egypt’s structural reform trajectory and its commitment to regional financial stability.