• Signing of the second phase of the Macro-Financial Assistance and Budget Support Mechanism worth €4 billion
• Activation of the €1.8 billion Investment Guarantees Mechanism to further empower the private sector
• Announcement of the renewal of the technical and financial cooperation agreement between the Arab Republic of Egypt and France worth €4 billion through 2030
• Signing of the agreement establishing the Egyptian–Swiss Joint Economic Committee and convening its first session
• Launch of the new Swiss Cooperation Programme in Egypt for the period 2025–2028
• Continued implementation of debt swap programmes with Germany and Italy and strategic partnerships in vital sectors
• Launch of the first-of-its-kind Partnership for Sustainable Development Programme (2025–2030) with the Kingdom of Spain
The Ministry of Planning, Economic Development & International Cooperation announced its 2025 Annual Review Report on the evolution of the Egyptian–European strategic partnership, as well as bilateral relations with European countries. This comes within the framework of the Ministry’s efforts to develop and strengthen economic relations with development partners and various countries, support national priorities, and mobilize investments and concessional financing to advance development efforts in Egypt.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development & International Cooperation, affirmed that since the announcement of the strategic partnership between Egypt and the European Union in March 2024, bilateral relations have witnessed continuous development with the support of H.E. President Abdel Fattah El-Sisi. This has been reflected in the implementation of the €7.4 billion financing package, increased European investments in Egypt, expanded support for private-sector empowerment, and diversification of the partnership portfolio to include vital areas such as innovation, digital transformation, climate action and the green transition, and the advancement of economic development.
She noted that 2025 marked a qualitative leap in the partnership between the two sides, particularly with the convening of the first Egypt–EU Summit in Brussels in October, which represented a turning point in bilateral relations. This was evident in the high-level representation and the scope of agreements signed, which opened broader avenues for cooperation between Egypt and the European Union. She also highlighted that the year witnessed significant developments in bilateral relations, most notably the continued implementation of debt swap programmes with Germany and Italy, as well as the signing of the Egyptian–Swiss Committee agreement, among other milestones.
Dr. Al-Mashat stressed that the Ministry remains committed to achieving further progress in joint relations, in line with the directives of the President of the Republic, and to advancing Egypt’s development path through shared priorities with European countries. This includes completing the Macro-Financial Assistance and Budget Support Mechanism and maximizing the benefits of the €1.8 billion Investment Guarantees Mechanism.
Macro-Financial Assistance and Budget Support Mechanism
In 2025, a Memorandum of Understanding and the Financing Facility Agreement were signed for the second phase of the EU’s Macro-Financial Assistance and Budget Support Mechanism, with a total value of €4 billion. This phase includes 87 structural reform measures to be implemented by 14 national entities, following the disbursement of the first tranche worth €1 billion, which was linked to the implementation of 22 measures by nine entities.
Throughout the year, the Ministry received multiple missions from the European Commission and held numerous meetings with various ministries to discuss the structural reforms to be implemented under the second phase of the Macro-Financial Assistance and Budget Support Mechanism. Discussions also covered projects to be financed under the financial allocations for 2025 and 2026, in order to define national priorities within grants totaling €600 million, as stipulated in the political declaration between the two sides.
Investment Guarantees
During the Private Sector Development Finance Conference organized by the Ministry in June 2025, Egypt and the European Union launched the €1.8 billion Investment Guarantees Mechanism under the strategic partnership. Through this mechanism, the EU provides guarantees to the private sector, helping to mobilize investments worth up to €5 billion by 2027.
Focus on Strategic Sectors
Within the framework of cooperation with the European Union, the programme “EU Support for the Implementation of Social and Economic Reforms at the Local Level” was signed, valued at €75 million in grant financing. An executive agreement was also signed between the government and the EU for the grant “EU Support to Improve Grain Storage in Egypt.”
Additionally, the “EU Support to Egypt’s National Population Strategy – Phase II” programme was signed with a €12 million EU grant. An investment grant agreement for the Sustainable Green Industry (GSI) Programme worth €21 million, managed by the European Investment Bank (EIB), was also signed, along with an advisory grant for the same programme valued at €8.8 million, also managed by the EIB.
In the same context, a €90 million financing agreement was signed with the EIB to fund the Food Resilience Project, marking the Bank’s first cooperation with Egypt in the supply sector. This took place on the sidelines of the visit of Ms. Dubravka Šuica, European Commissioner for the Mediterranean, to Egypt in February 2025. In addition, €800,000 was provided and managed by the EIB to conduct a feasibility study for the Distribution Control Centers Project – Phase III, under the energy pillar of the NWFE Programme.
Egyptian–German Relations
Within the framework of bilateral relations, Egypt and the Federal Republic of Germany concluded the 2025 government negotiations round in Berlin, co-chaired by the Minister of Planning, Economic Development & International Cooperation and Ms. Reem Alabali-Radovan, Federal Minister for Economic Cooperation and Development of Germany, with the participation of representatives from national entities. The two sides signed agreements for concessional financing, debt swaps, grants, and technical cooperation worth €294.5 million (equivalent to EGP 16 billion).
These agreements include €171.5 million in concessional financing, debt swaps, and grants for projects in renewable energy under the NWFE Programme, solid waste management, and improving the investment climate, as well as the 2025 Egyptian–German Negotiations Protocol, which includes €123 million in concessional financing and technical support for the coming period.
The year also witnessed the signing of a new debt swap agreement worth €21 million to enhance renewable energy supply for the Egyptian Electricity Holding Company, in addition to a €29 million debt swap agreement for the project “Strengthening National Capacities to Provide Quality Education, Health, and Nutrition Services to Support Social Cohesion and Resilience for Crisis-Affected Populations and Host Communities.”
Egyptian–Italian Relations
Building on strong Egyptian–Italian relations, 2025 saw the implementation of several executive agreements signed in December 2024 under the third phase of the Egyptian–Italian Debt Swap Programme for Development.
These include the project “Enhancing Private Sector Participation in Development through International Cooperation: Support to the Private Sector Participation Unit at the Ministry of Planning, Economic Development & International Cooperation,” additional financing for the project “Inclusive Green Growth in Egypt” implemented by UNIDO for the Ministry of Environment, and additional financing for the “Egyptian–Italian Environmental Cooperation Programme,” also implemented by UNIDO for the Ministry of Environment. Additional financing was also provided for several projects in the education sector, the enhancement of safety and security at archaeological sites, and women’s empowerment.
Egyptian–Spanish Relations
During the historic visit of King Felipe VI of Spain to Egypt and the convening of the Egyptian–Spanish Business Forum, the Minister of Planning, Economic Development & International Cooperation and Mr. José Manuel Albares, Spain’s Minister of Foreign Affairs and Cooperation, signed the Partnership for Development Agreement—the first of its kind between the two countries—reflecting their shared commitment to strengthening economic relations. This was in addition to the Minister’s participation in the official visit of President Abdel Fattah El-Sisi to the Kingdom of Spain at the beginning of 2025.
The Spain–Egypt Partnership for Sustainable Development Programme (2025–2030) aims to strengthen the historical relations between the two countries through a renewed and sustainable development cooperation framework. The programme is the first of its kind globally for the Spanish Agency for International Development Cooperation (AECID) and establishes cooperation based on the shared strategic priorities of both countries.
A €1.5 million grant agreement was also signed with the Spanish government to finance the “Preliminary Feasibility Study for the Extension of Cairo Metro Line 1 (New El-Marg – Shibin El-Qanater),” for the National Authority for Tunnels and implemented by the Spanish company TYPSA, under the sustainable transport pillar of the “NWFE+” platform. Additionally, supplementary financing of €500,000 was provided by AECID to support the project “Enhancing the Competitiveness of the Textile and Ready-Made Garments Sector – Phase II,” implemented by the Ministry of Industry in cooperation with the International Trade Centre.
Egyptian–French Relations
In 2025, President Emmanuel Macron paid a historic visit to Egypt, during which he met with President Abdel Fattah El-Sisi, and joint declarations were signed to elevate bilateral relations to the level of a strategic partnership. The visit witnessed the signing of several agreements, including a grant from the French Development Agency (AFD) for the “Alexandria Regional Control Center” project; detailed credit facility and grant agreements for the “East Alexandria Wastewater Treatment Plant” project; credit facility and grant agreements for the “Robiki–10th of Ramadan–Belbeis Railway Line” project; and detailed credit facility and grant agreements for the “Gabal El-Asfar Wastewater Treatment Plant – Phase III” project.
In implementation of the joint declaration, the Minister of Planning, Economic Development & International Cooperation and Mr. Éric Chevallier, French Ambassador to Cairo, announced the renewal of technical and financial cooperation between Egypt and France, amounting to €4 billion through 2030, to support priority projects in Egypt.
In another context, the fifth amendment to the “Informal Areas Development and Employment Support Programme” was signed, financed by a €15 million grant and an additional €3 million grant from AFD in favor of the Micro, Small and Medium Enterprises Development Agency. An agreement was also signed for the “Sustainable Green Industry” project, including a €45 million loan for the Ministry of Environment, in addition to a €9 million EU grant to support programme implementation.
Egyptian–Swiss Relations
Culminating joint efforts between Egypt and Switzerland, an agreement establishing a “Joint Economic Committee” was signed between the Ministry of Planning, Economic Development & International Cooperation and the Swiss Federal Department of Economic Affairs, Education and Research. The agreement was signed during the Davos Conference in Switzerland, in the presence of Prime Minister Dr. Mostafa Madbouly and the Vice President of the Swiss Confederation. In May 2025, the first technical-level meeting of the Committee was held to discuss the future of economic relations between the two countries.
The new Swiss Cooperation Programme in Egypt for the period 2025–2028 was also launched, with a total value of CHF 60 million over four years, to be implemented by the Swiss Agency for Development and Cooperation. The programme focuses on migration, green economic development, and improved governance.
Egyptian–Swedish Relations
The Minister of Planning, Economic Development, and International Cooperation also signed a Letter of Intent with Ms. Maria Håkansson, Chief Executive Officer of Swedfund, under which the Swedish Development Finance Institution will provide development grants to prepare feasibility studies to enhance the stability and efficiency of the electricity grid, in addition to financing consultancy services for the Bus Rapid Transit (BRT) project.
Ongoing Follow-Up to Strengthen Partnerships
As part of its continuous follow-up and efforts to strengthen partnerships with the European side, the Ministry organized numerous meetings, committees, and workshops in coordination with national entities to ensure effective and sustained engagement.
During the year, the Ministry organized a workshop on how to prepare project proposals under upcoming calls within the EU’s Interreg Europe NEXT MED programme. It also chaired the ninth meeting of the EU–Egypt Subcommittee on Transport, Environment, and Energy, as well as the ninth meeting of the Subcommittee on Audiovisual, Information and Communication Technologies, Research and Innovation, Education, Culture, and Youth. In addition, the Ministry convened a coordination meeting with various development partners to explore cooperation through different technical assistance mechanisms related to low-carbon industries.
The Ministry also hosted an EU information session attended by the Managing Authority of the Cross-Border Cooperation Programme for the Mediterranean Basin and relevant EU technical entities. The first Steering Committee meetings were held for the “EU Trade, Industry, Growth and Rapid Access to Markets (EU TIGARA)” programme and the “EU–Egypt Green Facility,” as well as meetings of the steering committees for the EU-funded projects “EU-Kafi,” “EU-Zira3a,” and the second steering committee meeting for the “EU-Swame3” project.
In addition, two high-level missions were conducted in June and December 2025: the first led by the Bank’s Vice President for the Mashreq region, and the second led by the Director of Operations for the EU Neighbourhood and Enlargement region, with the aim of following up on ongoing projects and preparing the pipeline of projects for 2026 and 2027.