"Al-Mashat": Egypt and Germany Strengthen Economic Partnership with Signing of Debt Swap and Grant Agreements Worth €77.3 Million

Executive Agreement & Grant of €48.3 million for the Comprehensive Technical Education Initiative Project.

Debt Swap Agreement of €29 million to support health and social services.

H.E. Dr. Rania Al-Mashat: “Our partnership with Germany is pivotal for achieving economic development and advancing climate action efforts.”

The Debt Swap Program with Germany is a practical step toward restructuring the global financial system.

Egypt’s pioneering debt swap programs serve as a model for other countries.

 

In a continued effort to enhance the economic partnership between the Arab Republic of Egypt and the Federal Republic of Germany, agreements totaling €77.3 million were signed today to support various developmental sectors.

The signing ceremony was attended by H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation; Mr. Mohamed Abdel-Latif, Minister of Education and Technical Education; Mr. Jürgen Schulz, German Ambassador to Cairo; and officials from the German Development Bank (KfW).

The agreements involve the financing of two projects aimed at promoting sustainable development and achieving the goals of the National Development Strategy.

The first project is the "Technical Support for the Comprehensive Technical Education Initiative with Egypt – Phase II," valued at €16.31 million, aimed at enhancing the efficiency, quality, and relevance of Egypt's technical education system.

The project will run from 2024 to 2028 and is an integral part of the "New Comprehensive Technical Education Initiative," a long-term cooperation between Egypt and Germany established in 2018.

Additionally, a €32 million grant was signed for the project "Financial Support for the Comprehensive Technical Education Initiative – Phase II." The project aims to develop technical education and vocational training in Egypt. This is part of the second phase of a three-phase program, aiming for a significant transformation in the level and quality of technical education and vocational training through the improvement of infrastructure, including the construction of new green buildings or the rehabilitation of existing structures according to sustainability standards. The project will also equip facilities with modern equipment, including the establishment of up to three Centers of Excellence that will provide advanced practical and vocational education, in close cooperation with private sector companies to ensure alignment of training programs with labor market demands.

It is noteworthy that financial cooperation between Egypt and Germany in the field of technical education has reached approximately €121.5 million to date.

In another development, a Debt Swap Agreement worth €29 million was signed for the project "Enhancing National Capacities to Provide High-Quality Education, Health, and Nutrition Services to Support Social Cohesion and Resilience for Crisis-Affected Populations and Their Host Communities." This agreement benefits the Ministries of Social Solidarity, Health and Population, and Education and Technical Education, as well as international partners such as UNICEF and the World Food Programme (WFP).

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized the close partnership with Germany, which has contributed to achieving economic development and advancing climate action efforts. H.E. Dr. Al-Mashat stated that the Debt Swap Program with Germany is a practical example of the calls for restructuring the global financial system. Since 2012, three phases of the program have been implemented, benefiting sectors such as education, health, food security, and other priority areas, making the program a model for other countries.

H.E. Minister Al-Mashat emphasized that debt swaps have become a priority for middle-income countries in light of global financial system restructuring demands. Egypt, along with Germany, is presenting a model of this cooperation, noting the significant progress in Egyptian-European relations under the "Team Europe" initiative, especially after upgrading the relationship to a strategic partnership in March.

H.E. Dr. Al-Mashat also highlighted the importance of the grant signed for technical education, which aligns with the country's efforts to localize industry, achieve industrial development, and focus on technical education and skills development. This will reflect positively on increasing exports and achieving sustainable growth.

It is worth noting that the Debt Swap Program with Germany is managed through a governance structure to ensure optimal implementation of the agreements and maximize benefits. This includes coordination between the Ministry of Planning, Economic Development, and International Cooperation and the German side regarding projects, negotiations with the German Development Bank, and national beneficiary entities, as well as finalizing technical details and financial agreements.