By: ThinkBusiness Africa
The International Monetary Fund (IMF) said on Wednesday that its Executive Board has successfully completed the combined fifth and sixth reviews of Egypt’s economic reform program.
The decision unlocks approximately $2.3 billion in fresh financing for the North African nation, providing a critical buffer as it continues to navigate a complex path toward macroeconomic stability.
The total package consists of two distinct funding streams designed to address both immediate fiscal needs and long-term structural resilience.
Under the Extended Fund Facility (EFF), roughly $2 billion will be disbursed following the completion of the fifth and sixth reviews of Egypt’s 46-month loan program.
Similarly, under the Resilience and Sustainability Facility (RSF) program approximately $273 million was approved under a separate review focused on climate-related and long-term structural reforms.
This latest move brings total disbursements under Egypt’s current IMF arrangements to roughly $5.2 billion. To ensure the momentum of these reforms, the IMF also confirmed an extension of the EFF arrangement through December 15, 2026.
In a statement following the board meeting, the IMF praised Cairo’s “sustained stabilization efforts,” noting several key improvements in the country’s macroeconomic profile.
Annual urban consumer inflation, which peaked at 38% in late 2023, declined to 11.9% by January 2026. With Real GDP growth accelerating to 4.4% in the 2024/25 fiscal year, up from 2.4% the previous year.
Foreign Reserves rose to $59.2 billion as of December 2025, supported by a shift to a flexible exchange rate and significant foreign direct investment (FDI).
“Tight monetary and fiscal policies, together with exchange rate flexibility, have helped restore macroeconomic stability and strengthen the external position,” the Fund noted.
Despite these gains, the IMF cautioned that progress on structural reforms has been “uneven.” Specifically, the Fund highlighted the slow pace of the government’s divestment agenda—a key pillar of the deal aimed at reducing the state’s footprint in the economy to allow for more private-sector-led growth.
Egypt’s loan program was originally set at $3 billion in late 2022 but was expanded to $8 billion in March 2024. The expansion was triggered by severe external shocks, including the conflict in Gaza and disruptions in the Red Sea, which slashed Suez Canal revenues—a vital source of foreign currency—by nearly 50% in early 2024.
The government has recently taken bold steps to meet IMF benchmarks, including a significant cabinet reshuffle and a EGP 40 billion social protection package aimed at shielding the most vulnerable from the impact of high prices.
