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 stabilise the economy and boost investor confidence. Planning and International Cooperation Minister Rania al-Mashat chaired a high-level coordination meeting in the new administrative capital on Thursday joined by the ministers of environment, electricity, irrigation, investment, and 15 national institutions. The meeting focused on executing 88 reform measures required to access €4bn 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 described the reforms as "a core part of Egypt's national economic development narrative", underscoring government efforts to enhance competitiveness, attract foreign investment and accelerate the green transition. The government is also preparing to roll out a €1.8 billion investment guarantee scheme next month aimed at catalysing private sector activity, she added. Environment Minister Yasmine Fouad said ongoing efforts include 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 ambition to raise renewable energy's share in the electricity mix to 42 per cent by 2030 and 65 per cent by 2040, with increased participation from the private sector under a liberalised electricity market. Water Resources Minister Hany Swailem highlighted progress on sectoral governance under the new Water Law, including the formation of 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 liberalisation and institutional transparency — key pillars of Cairo's broader effort to attract investment and deliver sustainable growth. Attribution: Amwal Al Ghad English
