Egypt is set to begin negotiations with the European Union in April 2025 to secure financial support amounting to €4 billion for its national budget, according to Dr. Rania Al-Mashat, Minister of Planning.
In an interview with Asharq during her press conference hosted by the National Press Authority in Cairo, Al-Mashat highlighted that these funds are part of Egypt’s National Structural Reform Program. The program focuses on three main pillars: maintaining macroeconomic stability, securing a business-friendly environment to encourage private sector growth, and supporting the green transition.
This follows Egypt’s strategic partnership with the European Union, signed early last year, worth €7.4 billion in grants and loans, which will be provided by the EU until 2027.
In addition to the budget support, Dr. Al-Mashat also discussed the advantages of the “Novi” platform, emphasizing its role in offering risk guarantees, debt swaps, and paving the way for increased investments in renewable energy and green projects. This platform has enabled Egypt to attract private sector investments, with $3.9 billion in funding allocated for private sector projects.
Al-Mashat also noted that the government is focusing on financing national projects that have exceeded 70% completion, underlining a new policy the ministry has adopted to accelerate project execution.
Egypt’s economic growth is poised for a boost, with the country’s GDP expected to reach 4% during the 2024/2025 fiscal year, according to Al-Mashat. In a recent address to the National Press Authority, Al-Mashat reported that Egypt’s economy had already grown by 3.5% in the first quarter of the current fiscal year, surpassing the 2.7% growth recorded during the same period last year.
The minister emphasized that this growth can be attributed to ongoing efforts to stabilize the macroeconomic environment and the country’s commitment to structural reforms. “The continued success of these initiatives is a testament to the effectiveness of aligning strategic planning, economic development, and international cooperation,” Al-Mashat remarked.
Al-Mashat also highlighted that the government is not only focused on boosting short-term economic growth but is committed to transforming national strategies into concrete development projects that will have lasting positive effects across various sectors. This includes sectors like renewable energy, infrastructure, manufacturing, and agriculture, all of which are essential for diversifying Egypt’s economy and reducing its reliance on traditional industries.
Moreover, the country’s economic transformation is closely linked to its relationships with international partners. As part of its strategy, Egypt has been actively working with key partners, including the European Union, which has committed substantial funds for structural reforms. Last year, Egypt signed a strategic partnership with the EU, securing €7.4 billion in grants and loans aimed at supporting Egypt’s long-term economic stability and green transition initiatives.
In line with this, Minister Al-Mashat underscored the role of foreign investments in driving Egypt’s economic agenda. The country’s efforts to enhance its business environment, attract foreign direct investment (FDI), and encourage private sector growth are expected to continue yielding positive results. Egypt’s recent advancements in financial technology, renewable energy, and sustainable development projects are further examples of how the government is positioning itself as a growing hub for innovation and investment.
The forecasted 4% GDP growth for the 2024/2025 fiscal year reflects Egypt’s determination to achieve sustainable economic development despite global economic challenges.
