The decision unlocks an immediate disbursement of about $2 billion under the EFF and $273 million under the RSF, bringing Egypt’s total purchases under both facilities to just over $5.2 billion. The IMF has also extended the 46‑month EFF arrangement to December 2026.
According to the Fund, Egypt’s macroeconomic outlook is improving as stabilisation measures take hold. Real gross domestic product (GDP) growth rose to 4.4% in the 2024/25 financial year, and inflation dropped sharply to 11.9% in January 2026, supported by tight monetary and fiscal policies. The current account deficit narrowed to 4.2% of GDP on the back of strong tourism receipts and remittances, while investor confidence continued to recover, reflected in successful Eurobond issuances and higher foreign inflows.
The country’s external position also improved, with foreign reserves rising from $54.9 billion in December 2024 to $59.2 billion a year later. Fiscal performance strengthened through increased tax revenue and reduced public investment, although the primary balance fell short of programme targets due to delays in divestment proceeds.
Progress under the RSF has been positive. Egypt has issued new directives requiring banks to monitor climate‑related risks and published an implementation schedule for its renewable energy targets.
However, the IMF warned that structural reform progress remains uneven. Efforts to reduce the state’s role in the economy, particularly through divestment of non‑strategic assets, have been slower than planned. High public debt and large financing needs continue to weigh on growth prospects.
IMF Deputy Managing Director Nigel Clarke said Egypt must accelerate reforms to transition to a more sustainable, private‑sector‑led growth model. He stressed the importance of exchange rate flexibility, strengthening domestic revenue mobilisation, improving governance of state‑owned enterprises and implementing a comprehensive debt‑management strategy.
Clarke also warned that regional geopolitical tensions and tight global financial conditions continue to present significant risks. A rebound in Suez Canal activity or stronger hydrocarbon output could, however, provide upside support.
–IMF/ChannelAfrica–
