Egypt and China signed Thursday a landmark agreement to launch the first phase of a debt-for-development swap programme, the Egyptian government detailed Friday. The agreement makes Egypt the first country to enter such a deal with China's International Development Cooperation Agency (CIDCA). Egyptian Minister of Planning and International Cooperation Rania Al-Mashat signed the agreement with CIDCA Chairman Chen Xiaodong during Chinese Premier Li Qiang's official visit to Egypt. The signing ceremony took place at the Cabinet headquarters in the New Administrative Capital and was witnessed by Egyptian Prime Minister Moustafa Madbouly and Premier Li. The deal activates a memorandum of understanding originally signed in October 2023, and will allow part of Egypt's debt to be converted into funding for jointly agreed development projects. "Egypt has a strong track record with debt swap programs, securing over $900 million in cooperation with partners like Italy and Germany," Minister Al-Mashat said. She added that the agreement reflects Egypt's leadership in using innovative financing tools to drive sustainable development. The Ministry of International Cooperation said the programme is aligned with international efforts to reform global financial systems and support the development goals of the Global South, especially through mechanisms that offer fiscal space while accelerating national priorities. The agreement comes amid growing Chinese-Egyptian cooperation and signals a broader shift toward development-focused financing across emerging markets. Attribution: Amwal Al Ghad English
