The financing is divided as follows:
• A package of innovative financing and debt swaps worth €171.5 million to connect renewable energy stations to the "NWFE" platform and empower the private sector.
• Signing of the Egyptian-German Negotiations Protocol worth €123 million for the coming period.
Dr. Rania Al-Mashat:
• Debt swap for development and climate action is a key pillar of the Egyptian-German partnership.
• The Negotiations Protocol provides innovative financing for 10 sectors, topped by localizing industry, innovation, technology, economic development, and scientific research.
The Arab Republic of Egypt and the Federal Republic of Germany concluded the round of governmental negotiations for the current year, which was held in the German capital, Berlin.
The session was chaired by H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and H.E. Ms. Reem Alabali-Radovan, German Federal Minister for Economic Cooperation and Development, with the participation of a number of representatives from national entities. The two sides signed agreements for concessional financing, debt swaps, grants, and technical cooperation worth €294.5 million, equivalent to EGP 16 billion.
The signed agreements are divided into €171.5 million for concessional financing agreements, debt swaps, and grants for various projects in the fields of renewable energy under the "NWFE" program, solid waste management, and improving the investment environment, in addition to the Egyptian-German Negotiations Protocol for the current year, which includes concessional financing and technical support worth €123 million for the coming period.
Dr. Rania Al-Mashat expressed appreciation to the German state for the kind hospitality and the commitment to the continuity of the Egyptian-German governmental negotiations, reflecting the depth and strength of the partnership and the joint work to advance development efforts and achieve mutual interests.
Dr. Al-Mashat pointed out that the current visit to Germany was fruitful on several levels, both regarding the new negotiations and the signing of a number of executive agreements for various development projects, as well as debt swaps.
She highlighted that today marks a new chapter of fruitful cooperation between the Arab Republic of Egypt and the friendly state of Germany, to strengthen the economic partnership in collaboration with national and German entities, represented by the German Agency for International Cooperation (GIZ) and the German Reconstruction Bank (KFW), thereby achieving Egypt's development priorities and supporting the government's efforts to empower the private sector, stimulate foreign direct investment, and expand innovative financing mechanisms with development partners.
Agreement Details
Dr. Rania Al-Mashat witnessed the signing of a new tranche of the Egyptian-German Debt Swap for Development, valued at €50 million, between the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Transmission Company, and the German Reconstruction Bank (KfW). This tranche is for the project “Connecting ACWA Power (1) and (2) wind farms, to the National Grid to evacuate 1,100 MW of Wind Energy.” The agreement contributes to alleviating the external debt burden and swapping financial obligations with local investments in infrastructure and clean energy.
Also, in the context of connecting ACWA Power (1) and (2) wind farms, to the National Grid to evacuate 1,100 MW of wind energy, an agreement for concessional financing and two complementary grants worth €86 million was signed between the national and German entities (with €54 million in concessional financing and two grants worth €32 million).
These agreements aim to finance the electrical grid connection works for wind farms in Ras Ghareb and Gabal El Zeit, as part of the plan to expand renewable energy projects, reduce reliance on fossil fuels, and decrease carbon emissions. This also includes supporting the capacity of the national electricity grid to absorb increasing renewable energy capabilities and transform it into a smart and more flexible grid, thereby contributing to the implementation of the Nationally Determined Contributions (NDCs) and the National Sustainable Energy Strategy 2035.
Improving the Investment and Financing Environment
In another context, the Minister of Planning, Economic Development, and International Cooperation witnessed the signing of the grant agreement to finance the project "Risk Management Mechanisms – Phase II" with a total amount of €15 million between the Central Bank of Egypt, the Credit Guarantee Company (CGC), and the German Reconstruction Bank (KfW). This funding contributes to strengthening credit guarantee mechanisms and aims to support the private sector and Small and Medium-sized Enterprises (SMEs), facilitating their access to financing by reducing the risks associated with financing, within the broader efforts to "improve the investment and financing environment" in Egypt.
Solid Waste Management
Dr. Rania Al-Mashat witnessed the signing of the grant agreement for financing the project "Solid Waste Management – Phase III" with a total amount of €20 million between the Central Bank of Egypt, the Ministry of Environment (as the project implementing agency), and the German Reconstruction Bank (KfW). The National Solid Waste Management Program aims to enhance sustainable environmental protection efforts, protect natural resources, and reduce the health risks of waste to citizens. Specifically, it aims to support the establishment and implementation of effective policies, legislation, and institutional structures for waste management at the national, local, and governorate levels in Egypt, coupled with the implementation of infrastructure in the project areas.
Energy Efficiency Support Project
The Minister of Planning, Economic Development, and International Cooperation also witnessed the grant agreement provided by the German Reconstruction Bank (KfW) worth €570,000 to contribute to the project supporting energy efficiency and the digitization of distribution networks.
New Negotiations Document
Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and her German counterpart, signed the Minutes of the Negotiations, which includes a package of concessional development financing and technical cooperation grants worth €123 million for the period 2025/2028.
These new allocations, within the framework of the Egyptian-German partnership, are aimed at financing numerous projects in the fields of climate, energy, and just transition, housing and infrastructure, sustainable economic development, training and employment, as well as education and technical education, migration, land reclamation, and scientific research. This reflects the diversity of Egyptian-German relations and their strengthening within the framework of national priorities.