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Egypt, EU coordinate on 2026-2027 development grants as growth surpasses 5%

Egypt's 5%+ Q1 growth triggers EU development grant coordination, reflecting successful reforms in industry, IT, and tourism sectors.
19.01.26



Egypt’s economic growth rate exceeded 5% during the first quarter of the current fiscal year, Planning, Economic Development and International Cooperation Minister Rania Al-Mashat said.





The announcement followed the disbursement of a €1bn tranche in January 2026 under the European Union’s Macro-Financial Assistance (MFA) programme.5 During a meeting with EU Ambassador Angelina Eichhorst, Al-Mashat confirmed that the ministry is currently coordinating with national authorities to implement reforms required for the second and third tranches of the programme, which are scheduled for disbursement later in 2026.


Al-Mashat stated that the 109 policy measures and procedures implemented under the MFA mechanism are a “central part of the national structural reform programme.” She described the recent funding as “international testimony of confidence” in the structural reforms implemented by the state and a reflection of the strategic relationship between Egypt and the EU.


The minister noted that the growth rate reflects increased contributions from productive sectors, led by industry, telecommunications, information technology, and tourism. She added that indicators for private investment and exports have also improved, which she said demonstrates the success of policies aimed at achieving sustainable and inclusive growth while enhancing the economy’s resilience against regional and international shocks.


 



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