Egypt-European Union to Provide €1 Billion in Funding for Egyptian Macroeconomy

Egypt and the European Union are in the process of finalizing a €1 billion agreement to support the macroeconomy, as announced by the Ministry of International Cooperation in Cairo. This funding is part of a larger €7.4 billion package that was announced during the Egyptian-European summit last March, which aimed to elevate joint relations to a strategic partnership level.

According to Rania Al-Mashat, the Minister of International Cooperation, the €1 billion tranche will be disbursed in the second half of the year following its signing at the Egyptian-European investment conference. This initial tranche is the first step in a five billion euro mechanism designed to provide macroeconomic and budget support from the European Union. The remaining tranches are expected to be dispersed between 2025 and 2027.

The funding will be provided as soft financing with favorable repayment terms and low interest rates, intended to help bolster Egypt’s economy and enhance financial stability. In addition to this financial commitment from the European Union, the World Bank has also announced $700 million in financing to help support the Egyptian budget. This funding is part of a three-year, $6 billion development policy program aimed at increasing private sector involvement, improving macroeconomic resilience, and promoting sustainable growth in Egypt.