Egypt, Germany sign €294.5M financing, debt-swap, grant deals
Updated 11/19/2025 8:33:00 AM
Arab Finance: Egypt and Germany signed agreements for concessional financing, debt swaps, grants, and technical cooperation at a total value of €294.5 million (EGP 16 billion), according to a press release.
The deals were signed between Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat and German Federal Minister for Economic Cooperation and Development Reem Alabali-Radovan.
A total of €171.5 million will be allocated for concessional financing agreements, debt swaps, and grants for various projects in the fields of renewable energy under the Nexus of Water, Food, and Energy (NWFE) program. The amount will back solid waste management and enhance the investment environment.
Meanwhile, the remaining €123 million will be directed to the Egyptian-German Negotiations Protocol for the period 2025/2028.
It provides innovative financing for 10 sectors, topped by climate, energy, localizing industry, education, technology, economic development, and scientific research.
Al-Mashat highlighted that the signed agreements mark a new step in fostering collaboration with national and German entities, represented by the German Agency for International Cooperation (GIZ) and the German Reconstruction Bank (KFW).
The economic partnership achieves Egypt's development priorities and supports the government's efforts to empower the private sector, stimulate foreign direct investment (FDI), and expand innovative financing mechanisms with development partners.
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 (CBE), the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company (EEHC), and the KfW Development Bank.
This tranche is for the ACWA Power 1 and 2 wind power interconnection project with the National Grid to generate 1,100 megawatts (MW) of wind power.
Earlier in November, Egypt and Germany penned a €50 million debt-swap agreement to finance energy transition projects and expand solar and wind power plants.
The two countries 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 cut carbon emissions.
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