● H.E. Dr. Rania Al-Mashat: Extensive government coordination to implement the second phase of the MFA mechanism to enhance macroeconomic stability and improve the business environment.
● Ongoing discussions with the European Union to implement the economic pillar of the strategic partnership.
● Structural reforms are an integral part of Egypt’s economic development and growth.
As part of its coordinating role in implementing the National Structural Reform Program under the Macro-Financial Assistance (MFA) mechanism with the European Union, H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, held a coordination meeting at the Ministry's headquarters.
The meeting was attended by H.E. Dr. Yasmine Fouad, Minister of Environment; H.E. Dr. Hani Sewilam, Minister of Water Resources and Irrigation; H.E.Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy; H.E. Mr. Hassan El-Khatib, Minister of Investment and Foreign Trade; Dr. Mahmoud Momtaz, Chairman of the Egyptian Competition Authority; Mr. Osama El-Gohary, Assistant to the Prime Minister and Head of the Information and Decision Support Center (IDSC); Mr. Sherif El-Kilany, Deputy Minister of Finance for Tax Policy; along with representatives from 15 national entities.
Al-Mashat highlighted that this meeting comes within the framework of the ongoing coordination among national entities to implement the structural reform package outlined for the second phase of the Macro-Financial Assistance (MFA) mechanism with the European Union, amounting to €4 billion. This phase forms part of the economic pillar of the Egypt–EU Strategic Partnership, as declared in March 2024 during the visit of Ms. Ursula von der Leyen, President of the European Commission, to Egypt.
Al-Mashat noted that the second phase of the MFA builds on the achievements of the first phase, which included €1 billion in budget support financing already disbursed in December 2024. She emphasized the strong and robust partnership between Egypt and the European Union, which contributes to advancing development efforts in Egypt—particularly through the upcoming Investment Guarantee Mechanism set to be launched in June. This mechanism will open new horizons for foreign investment in Egypt by providing €1.8 billion in guarantees to the private sector.
Moreover, H.E. Emphasized the ongoing coordination and follow-up between the technical teams of the 15 national entities involved in implementing the structural reforms under the second package of the MFA mechanism. These entities will carry out 88 measures as part of the National Structural Reform Program aimed at enhancing macroeconomic stability and resilience, boosting competitiveness, improving the business climate, and advancing the green transition. She clarified that these reforms are part of Egypt’s national development narrative, focused on: “Advancing Economic Development in Egypt: Reforms for Growth, Jobs & Resilience”.
Al-Mashat affirmed that the structural reforms already implemented stem from a clear national vision and direction to enhance economic competitiveness, increase private sector participation, adopt investment-friendly policies and programs, and streamline legislative and regulatory frameworks—ultimately creating a more attractive environment for both local and foreign investment. She also noted that these reforms are integrated with other measures related to the governance of public investment and the regulation of state participation in economic activities.
For her part, Dr. Yasmine Fouad, Minister of Environment, highlighted the ongoing efforts to finalize the procedures related to the structural reforms currently being implemented by the Ministry of Environment across its three pillars: strengthening macroeconomic stability and resilience, improving the business and investment climate, and advancing the green transition. She noted that, within the context of climate change adaptation, it is essential to conduct local climate risk assessments, integrate adaptation priorities into local planning systems and development plans, and strengthen capacity-building at the subnational level to ensure effective implementation.
The Minister of Environment also pointed to efforts to revise the feed-in tariff for waste-to-energy conversion—an important step toward integrating waste management with renewable energy production. She emphasized the involvement of multiple ministries in both regulatory and operational oversight, the promotion of incentives to encourage private sector participation, alignment with Egypt’s nationally determined contributions (NDCs) under its climate commitments, and the improvement of waste management practices—all of which will generate economic benefits and strengthen the renewable energy sector.
H.E. Dr. Hani Sewilam, Minister of Water Resources and Irrigation, reviewed the Ministry’s key efforts and future vision in the area of structural reform and the application of governance principles in its projects and operations, recognizing their essential role in ensuring transparency, accountability, and coordination among the various relevant entities. These efforts fall under the umbrella of the second generation of the Irrigation System 2.0. He noted that the Ministry had issued the Water Resources and Irrigation Law No. 147 of 2021 along with its executive regulations, followed by a series of regulatory decisions issued by the Prime Minister and the Minister of Water Resources and Irrigation. This legislative update was necessary due to the many changes the water sector has undergone over the past decades.
Moreover, Dr. Sewilam affirmed the ongoing coordination and collaboration with both the Ministry of Agriculture and Land Reclamation and the Ministry of Housing and Urban Communities on all joint projects related to water infrastructure, including irrigation and potable water initiatives.
H.E. Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy, emphasized the sector’s strong commitment to increasing the share of renewable energy in Egypt’s electricity mix, aiming to reach 42% by 2030 and 65% by 2040. He highlighted the support and encouragement provided to the private sector, along with the necessary steps being taken to enhance its involvement in various projects and sustain its leading role in renewable energy initiatives as a key success partner. The Minister noted that the Ministry is actively working to open new opportunities and provide comprehensive support to increase both local and foreign private investment in energy efficiency projects and the development and support of power grids. He added that an ambitious program is underway to modernize and upgrade various aspects of the electricity sector. This is being implemented within the framework of the Electricity Law, which mandates the liberalization of the electricity market, the creation of a competitive environment for all stakeholders, and the enhancement of transparency and market fairness. The goal is to create an attractive investment climate as a strategic step to strengthen competitiveness and inject further dynamism into the sector, thus reinforcing Egypt’s position as a regional energy hub and a strategic energy corridor linking continents.
The Macro-Financial Assistance (MFA) mechanism is part of the financial support package announced during the Egypt-EU Summit in March 2024, between H.E. President Abdel Fattah El-Sisi and H.E. Ursula von der Leyen, President of the European Commission. The package totals €7.4 billion, including €5 billion under the MFA to be disbursed by 2027, €1.8 billion in investment guarantees for the private sector, and €600 million in grants targeting various development sectors.
In early December 2024, H.E. Dr. Rania Al-Mashat announced the European Commission's approval to disburse the first phase of the agreement, worth €1 billion, following the commission’s approval and completion of all procedures. On December 27, 2024, Egypt officially received the first tranche.