Egypt and Germany signed a €118m (approx. EGP 6.7bn) financial cooperation agreement to support education and the energy pillar of Egypt's “NWFE” programme, alongside a new €21m (EGP 1.2bn) debt swap tranche for renewable energy supply.

The agreements were signed by Egypt's Minister of International Cooperation, Rania Al-Mashat, and German Ambassador to Egypt, Jürgen Schulz. Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, also attended the signing for the new debt swap tranche, which raises the Egypt-Germany Debt Swap Programme's total value to approximately €297m (EGP 16.8bn).

The €118m financial cooperation includes a €32m grant for the Comprehensive Technical Education Initiative, benefiting the Ministry of Education and Technical Education. This aims to establish 25 Egyptian Centres of Excellence by constructing around three sector-focused centres.

The agreement also allocates €86m – €54m in development financing and €32m in grants – to connect Aqua Power Stations (1) and (2), enabling the offload of 1,100 megawatts of wind energy for the NWFE (Nexus of Water, Food, and Energy) programme's energy pillar.

The separate €21m debt swap agreement involves the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company, and the German Development Bank (KfW), targeting sustainable and renewable energy supply improvement.

Al-Mashat said “these agreements further solidify Egypt's partnership with Germany, contributing to economic development, climate action, and investment in human capital.” She added that “the financial support agreement is part of an ongoing partnership, bolstered under the framework of the Egyptian-European strategic cooperation and backed by both governments'leaderships.”

Al-Mashat also noted the importance of the “€21m debt swap agreement, which builds on cooperation initiated in 2011. Numerous development projects have been carried out under this framework, and the debt swap program with Germany is a practical application of calls to reform the global financial system.”

Electricity Minister Esmat confirmed that “Egypt has undergone a comprehensive infrastructure overhaul and enacted legislative reforms to attract private sector and international investment in electricity and renewable energy, particularly in the renewable energy sector, making Egypt one of the most attractive destinations for investment in this sector.”

He highlighted the “expansion of both solar and wind capacities, driven by both domestic and foreign private sector investment.”

Ambassador Schulz stated, “Egypt is an important partner for Germany in achieving global climate goals. This is why Germany supports Egypt with expertise and funding in its strategic investments for the future, especially in the expansion of renewable energy.”

“From the very beginning, Germany has supported Egypt's climate initiative NWFE as its largest bilateral partner, with assistance amounting to approximately EGP 15bn. The projects referred to in the agreement signed by us today will make it possible to supply more than 2.5 million households with green electricity,” Schulz added.

During COP27, Germany committed €250m to support the energy pillar of Egypt's NWFE programme, including €104m in debt swaps. A €54m agreement was signed in 2023 for electricity transmission network investment and to connect two wind farms (Noes Wind Farm and Amunet Red Sea Wind Farm, combined capacity 500 megawatts) to the national grid. Work is ongoing to sign the second debt swap tranche under this programme, valued at €50m.