Cairo: Egypt is accelerating the implementation of structural reforms as it seeks to unlock the second tranche of a £5 billion EU macro-financial assistance package designed to stabilize the economy and boost investor confidence.
According to State Information Service Egypt, Planning and International Cooperation Minister Rania al-Mashat chaired a high-level coordination meeting in the new administrative capital on Thursday. The meeting was attended by ministers of environment, electricity, irrigation, investment, and representatives from 15 national institutions. The focus was on executing 88 reform measures required to access £4 billion in budgetary support from the European Union under the Macro-Financial Assistance (MFA) programme.
The package is part of a wider £7.4 billion EU-Egypt partnership deal announced in March 2024 during a visit by European Commission President Ursula von der Leyen. The first £1 billion was disbursed in December 2024 following the implementation of initial reforms.
Minister Al-Mashat emphasized the importance of the reforms as 'a core part of Egypt's national economic development narrative'. She highlighted the government's efforts to enhance competitiveness, attract foreign investment, and accelerate the green transition. Additionally, a £1.8 billion investment guarantee scheme is set to be rolled out next month to catalyze private sector activity.
Environment Minister Yasmine Fouad noted ongoing efforts like revising feed-in tariffs for waste-to-energy projects and integrating local climate risk assessments into development planning. Electricity Minister Mahmoud Esmat reiterated Egypt's goal to increase renewable energy's share in the electricity mix to 42 percent by 2030 and 65 percent by 2040, with greater private sector participation under a liberalized electricity market.
Water Resources Minister Hany Swailem reported progress on sectoral governance under the new Water Law, which includes forming water user associations and the Supreme Council for Water chaired by the prime minister.
The MFA scheme, which will run through 2027, aims to anchor reforms in fiscal policy, market liberalization, and institutional transparency-key pillars of Cairo's broader effort to attract investment and deliver sustainable growth.