Egypt seeks to secure €4bln EU funding by June

Cairo has started negotiations with the EU, with the funds directed towards budget support and not specific projects

Egypt is negotiating a deal with the European Union (EU) to secure €4 billion ($4.2 billion) in financing to support its reform agenda, according to a report by Asharq Business.

The funds, intended for budgetary support rather than specific projects, are the focus of discussions between Cairo and the EU. Rania Al Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, indicated that the agreement is expected to be finalized by June.

In March 2024, the EU approved a €7.4 billion funding package for Egypt. This package includes €5 billion in concessional loans, €1.8 billion in investments, and €600 million in grants to be disbursed over the next three years.

The EU deal forms part of a broader wave of funding from Egypt’s international partners and multilateral lenders, estimated at $20 billion, according to Finance Minister Mohamed Maait.

Additionally, Finance Minister Ahmed Kouchouk recently announced that Egypt aims to raise nearly $3 billion by the end of the current fiscal year, concluding in June 2025. Despite facing challenges in the global economic environment, the government has committed to accelerating its divestment program to address its high debt levels.