Egypt is working with Germany on a new debt swap deal worth €100 million, set to be delivered in two phases. The first half will be disbursed in December 2025, and the second in June 2026. The funds will go toward development projects across the country.
Under this agreement, part of Egypt’s debt to Germany is converted into local investments in priority sectors like education, infrastructure, and climate.
Total Debt Swaps Now at €340M
With this new agreement, the total value of debt swaps between Egypt and Germany will reach €340 million, according to the Ministry of International Cooperation. The ongoing program has already funded key initiatives in health, vocational training, renewable energy, and sanitation.
Focus on National Priorities
Minister Rania A. Al-Mashat emphasized that all projects are chosen based on Egypt’s own development goals. This includes boosting healthcare services, technical education, and projects related to climate and sustainability.
A Strategic Economic Relationship
The partnership between Egypt and Germany extends beyond development. Around 1,400 German companies are investing in Egypt, and trade between the two countries has topped €7 billion. Germany is also a major backer of Egypt’s “Novi” green energy platform, launched at COP27.
Germany’s Green Energy Support
Germany has contributed €258 million in grants, soft loans, and debt swaps to help Egypt expand its electricity grid and boost renewable energy capacity. The goal: to reach 10 GW of green energy by 2028.
This debt swap program is a strategic model for long-term collaboration. It enables Egypt to allocate resources to key sectors while strengthening ties with one of its largest economic partners.
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