Minister of Planning, Economic Development and International Cooperation Holds Discussions with German Counterpart to Address Partnership Priorities and International Efforts to Expand Development Finance

During the 4th International Conference on Financing for Development (Ff4D) in Seville…

 

 

Minister of Planning, Economic Development and International Cooperation Holds Discussions with German Counterpart to Address Partnership Priorities and International Efforts to Expand Development Finance

 

 

 

 

Al-Mashat Emphasizes Effective Partnership with Germany for Economic Development through Development Cooperation Programs and Debt Swaps

 

Discussions on Preparations for the 2025 Joint Governmental Negotiations on Economic Cooperation

 

Ministers Discuss Efforts of UN Expert Group on Debt to Support Sustainable Debt Solutions and Reforms in Developing Countries

 

Discussions on Efforts to Expand Development Finance, Mobilize Private Sector Investment, and Restructure the Global Financial System

 

 

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, met with H.E. Reem Alabali Radovan, New German Federal Minister for Economic

Cooperation and Development – BMZ, during the Fourth International Conference on Financing for Development (Ff4D) in Seville. Egypt is participating in the conference with a high-level delegation led by H.E. Prime Minister Dr. Mostafa Madbouly.

 

The two sides highlighted the importance of the conference, convened at an exceptional time, and its role in advancing global discussions on restructuring the financial system, mobilizing private sector investment, and expanding development finance. They also touched on the fruitful economic cooperation between the Arab Republic of Egypt and the Federal Republic of Germany.

 

At the outset of the meeting, H.E. Dr. Rania A. Al-Mashat congratulated the German Minister on her new position and the formation of the new German government led by Chancellor Friedrich Merz, and wished them success in leading the country towards further progress and prosperity. H.E. Minister Al-Mashat emphasized that this new phase presents an opportunity to deepen and strengthen the well-established bilateral relations between Egypt and Germany, which have always been characterized by fruitful cooperation in various economic and developmental fields.

 

H.E. Dr. Al-Mashat noted that the bilateral economic cooperation portfolio between Egypt and Germany has reached 1.6 billion Euros to implement various development projects in different priority sectors that contribute to sustainable economic development, including energy and climate, water supply and sanitation, irrigation, migration, solid waste management, and enhancing private sector competitiveness.

 

H.E. Minister Al-Mashat also commended the German side's participation in the "Development Finance to Foster Private Sector-Led Growth and Job Conference," organized by the Ministry last month. During this conference, the "EFSD+ Investment Guarantees" mechanism, to be funded by the European Commission with 1.8 billion Euros, was launched.

 

The German side expressed readiness to participate in and benefit from these investment guarantees aimed at stimulating the private sector to drive economic growth and employment in Egypt.

 

The meeting reviewed the 2022 Financial Cooperation Agreement signed between Egypt and Germany, valued at 118 million Euros (equivalent to 6.7 billion EGP). This agreement includes several areas, among them a financial support agreement for the Comprehensive Technical Education Initiative for the Ministry of Education and Technical Education, aiming to support the establishment of 25 Egyptian Centers of Excellence (specialized centers and applied technology schools). Additionally, it includes development financing and grants to fund the project connecting the Aqua Power (1) and (2) stations to offload 1100 megawatts of wind energy, as part of the energy pillar of the "NWFE" program.

 

Both sides also discussed preparations for the joint governmental negotiations on cooperation for the current year and new tranches within the debt swap for development program.

A new tranche of the debt swap program, valued at 21 million Euros (equivalent to 1.2 billion EGP), was also signed to improve renewable energy supplies. This comes as a continuation of the cooperation that began in 2011 between the two sides in the Egyptian-German debt swap program, through which numerous development projects have been implemented.

In this regard, Dr. Rania A. Al-Mashat praised the success of the debt swap program, noting that the debt swap program with Germany serves as a practical application of calls for restructuring the global financial system. It is managed through a governance structure to ensure optimal implementation of agreements and maximize benefits through coordination by the Ministry of Planning, Economic Development and International Cooperation with the German side on projects and negotiations with the German Development Bank (KfW) and the benefiting national entities.

 

H.E. Minister Al-Mashat also lauded the German side's participation during the launch of the second progress report on the Country Platform for the "NWFE" program and the effective German contribution to financing energy pillar projects in implementation of the political declaration during the COP27 Climate Conference in Egypt, which includes 258 million Euros in the form of development financing, debt swaps, and financial contributions for expanding renewable energy projects.

 

The meeting saw constructive discussions on transferring Egypt's experience in launching the Country Platform for the "NWFE" program to African countries within the framework of South-South cooperation. They also underscored fruitful cooperation with the German Agency for International Cooperation (GIZ) in various fields such as technical education, water resource management, local community development, and support for entrepreneurship and women's empowerment.

 

H.E. Dr. Rania A. Al-Mashat also pointed out that the Ministry is working to promote government spending efficiency and increase the effectiveness of public investments to achieve the targeted developmental impact. She pointed to strict measures taken to govern public investments and reorder the priorities of the development plan to ensure that available resources are directed towards priority projects with the greatest developmental impact.

 

H.E. Dr. Al-Mashat added that these policies aim to achieve a balance between maintaining the specified investment spending ceiling, reducing reliance on external loans, and enhancing partnerships with the private sector to increase funding for sustainable development projects. She stressed that the government is also keen to adhere to the external borrowing ceiling and limit it to budget support and the completion of some priority projects with increased development financing for the private sector, which has been reflected in the downward trend of external debt.

 

The two sides outlined the importance of the UN Secretary-General’s Expert Group on Debt, established in December 2024. This group identified eleven actionable policy priorities to support sustainable debt solutions, including systemic reform, capacity building, and financial reforms at the national level.

 

Both sides discussed international efforts aimed at expanding development finance and benefiting from proven effective financing models to achieve sustainable development goals and attract private sector investments. They also reiterated the necessity of shifting towards more innovative financing tools that align with current global changes and contribute to alleviating the debt burden on developing and emerging countries. In this regard, H.E. Dr. Al-Mashat pointed to the government's efforts in setting an annual debt ceiling and measures for governing investment spending to achieve financial sustainability and empower the private sector.

 

Dr. Rania A. Al-Mashat reaffirmed that the Federal Republic of Germany is one of the most prominent international development partners of the Arab Republic of Egypt. The partnership between the two countries has contributed to achieving economic development, advancing climate action, and promoting investment in human capital. She mentioned that the financial support agreement between the two countries comes within the framework of the ongoing partnership, which is being strengthened under the umbrella of the Egyptian-European Strategic Partnership and enjoys the support of the leaderships of both countries.

 

At the conclusion of the meeting, H.E. Dr. Rania A. Al-Mashat extended an invitation to the German Minister to visit the Arab Republic of Egypt to observe and follow up on projects implemented in cooperation between Egypt and Germany on the ground. Both sides expressed their anticipation for the 2025 Egyptian-German governmental negotiations, in addition to the signing of the agreement for the new tranche of the Egyptian-German debt swap program, scheduled to be activated in December 2025.