Egypt’s Al Mashat discusses 2nd phase of MFA package with EU

Egypt and the European Union are moving forward with the second phase of a €4 billion macro-financial assistance package, as well as a €1.8 billion investment guarantee mechanism set to launch in June, Planning Minister Rania Al-Mashat said on Tuesday.

The announcement came during a high-level meeting between Minister Al-Mashat and EU officials, including EU Ambassador to Egypt Angelina Eichhorst and senior representatives from the European Commission’s economic and cooperation departments.

Minister Al-Mashat said Egypt is working closely with national ministries to implement structural reforms tied to the EU’s Macro-Financial Assistance (MFA) programme, including measures to support macroeconomic stability, enhance competitiveness, and accelerate the country’s green transition.

“These reforms are part of Egypt’s national development strategy aimed at fostering sustainable and inclusive growth,” she said.

€1.8b Investment Guarantee Set for June Launch

Minister Al-Mashat also confirmed that the EU’s Investment Guarantee Mechanism, valued at €1.8 billion, will go live in June. The facility aims to attract foreign investment by offering risk guarantees for private sector projects in Egypt.

She praised the EU’s evolving strategy through the new Mediterranean Charter, which shifts from broad regional frameworks to more targeted bilateral partnerships with southern neighbours. The charter aligns closely with Egypt’s national priorities in energy, transport, investment, and job creation, she noted.

The two sides also agreed to adopt a new strategic partnership framework for 2025–2027, focused on clearly defined priorities and practical implementation tools.

Minister Al-Mashat reiterated that the EU is one of Egypt’s most important development partners, with an active cooperation portfolio valued at around €1.3 billion, covering key sectors such as transport, renewable energy, agriculture, water, SMEs, social protection, governance, and institutional capacity building.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser