The IMF team is in Cairo for the fifth review of Egypt’s $8 billion Extended Fund Facility (EFF) amid ongoing economic pressure and regional instability.
The review is expected to conclude before the fiscal year ends in June.
Al-Mashat reported steady GDP growth—from 2.4 percent to 4.3 percent over two quarters of FY 2024/25—despite regional tensions, driven by non-oil manufacturing, ICT, tourism, transport, and storage.
She called it “not just stronger growth, but higher-quality growth.”
She emphasized Egypt’s shift toward export-oriented, value-added sectors, which aim to cut public debt, attract investment, and reinforce fiscal discipline.
The meeting also addressed public investment governance, private-sector engagement, and cooperation with international partners.
Al-Mashat highlighted the European Union’s (EU) €4 billion macroeconomic and budget support package, now entering its second phase.
“Our partnerships go beyond budget support,” she noted, citing $14.5 billion in private-sector development finance over the past five years.
She also reviewed progress on the Nexus of Water, Food, and Energy (NWFE) platform, which has secured $3.9 billion for renewable energy projects with 4.2 GW capacity—towards a 2030 goal of $10 billion and 10 GW, lifting renewables to 42 percent of the energy mix.
Al-Mashat outlined debt-swap deals with Italy, Germany, and China that redirect repayments into development projects supporting jobs and sustainability.
The IMF welcomed Egypt’s reform progress and reaffirmed its commitment to continued support.
“Our relationship with international partners goes beyond direct budget support,” the Minister said. “Development financing to the private sector has exceeded $14.5 billion over the past five years, supporting job creation and sustainable growth.”
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