Egypt expects to receive €1.5 billion ($1.72 billion) from the European Union within days, bringing the country closer to securing the full €5 billion ($5.72 billion) macro-financial assistance package that has become a cornerstone of Europe's strategy to stabilise one of Africa's largest economies.

Egyptian Foreign Minister Badr Abdelatty said on Saturday that the payment would be the first of the two remaining instalments under the EU facility, with another €1.5 billion ($1.72 billion) expected before the start of autumn.

Speaking alongside European Commissioner for the Mediterranean, Dubravka Suica, Abdelatty said the European Union had already transferred €2 billion ($2.29 billion) through two earlier disbursements, one in January 2025 and another earlier this year.

The latest payment forms part of a broader €7.4 billion ($8.46 billion) partnership unveiled by the EU in 2024 to deepen economic and political ties with Egypt.

The package combines macro-financial assistance, concessional loans, grants and investment support aimed at strengthening Egypt's economy while reinforcing cooperation on migration, energy security and regional stability.

Brussels has increasingly viewed Egypt as a strategic partner because of its location on the Mediterranean, its role in managing migration routes into Europe and its influence in conflicts across the Middle East and North Africa.

The partnership has taken on greater significance following the war in Gaza, persistent attacks on commercial shipping in the Red Sea and broader geopolitical tensions that have disrupted trade and weakened economic activity across the region.

The funding also comes as Egypt continues implementing economic reforms under an IMF-backed programme designed to restore macroeconomic stability after years of mounting external debt, high inflation and foreign currency shortages. Over the past two years, Cairo has secured billions of dollars in external financing from international lenders and Gulf investors, including the landmark Ras El-Hekma investment agreement with the United Arab Emirates, helping ease pressure on the Egyptian pound and rebuild foreign exchange reserves.

Despite signs of improving investor confidence, Egypt continues to face significant financing needs as authorities pursue structural reforms intended to attract private investment and strengthen long-term economic growth.

For the European Union, supporting Egypt is increasingly viewed as an investment in regional stability. A stronger Egyptian economy is expected to help reduce migration pressures, protect Mediterranean trade routes and strengthen Europe's economic and security interests in North Africa.