CAIRO, Jan. 15 (Xinhua) -- Egypt has received 1 billion euros (1.16 billion U.S. dollars) in concessional development financing from the European Union under an assistance mechanism, a government minister announced on Thursday.
Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said the financing represents the first tranche of the second phase of the macro-financial assistance (MFA) and follows the implementation of 16 economic and structural reforms in Egypt, according to a statement from her ministry.
Al-Mashat said the reforms aim to strengthen macroeconomic stability through improved public finance management, enhanced medium-term budget frameworks, and better management of fiscal risks and public investment, while also improving competitiveness and the business climate by facilitating industrial land allocation and investment licensing procedures.
The reforms also support 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 capital in support of sustainable economic development, she said.
Al-Mashat said concessional financing mechanisms supporting the state budget are a key tool to reduce short-term financial burdens, extend debt maturities, and create wider fiscal space for spending on human development programs.
The financing forms part of a broader EU financial support package announced in 2024, under which Egypt is set to receive a total of 7.4 billion euros, including 5 billion euros allocated through macro-financial assistance. Egypt received the first tranche of 1 billion euros in January 2025.
In a previous statement on Tuesday, Al-Mashat said the remaining 3 billion euros are to be disbursed in two tranches during 2026. ■