Egypt and Germany have signed on Tuesday agreements for concessional financing, grants, and technical cooperation totalling €294.5 million, marking the launch of a new phase in their economic partnership focused heavily on climate action and private sector empowerment. The agreements were signed in Berlin following the annual governmental negotiations, headed by Egypt's Minister of Planning and Economic Development Rania Al-Mashat, and Germany's Federal Minister for Economic Cooperation and Development Reem Alabali Radovan. The funding package is split primarily into two components: * €171.5 million for immediate implementation, targeting renewable energy projects under the flagship NWFE Programme, solid waste management, and improving the investment climate. This tranche includes a new €50 million debt-for-development swap. * €123 million allocated under a new Protocol of Negotiations for the period 2025-2028, earmarking funds for ten priority sectors including industrial localisation, innovation, and sustainable development. "Debt swap for development and climate action is a key focus within the Egyptian-German partnership," Al-Mashat said, adding that the goal is to expand innovative financing with development partners and support the government's efforts to empower the private sector and stimulate Foreign Direct Investment (FDI). Green Energy Focus A significant portion of the immediate funding, totalling €136 million (including the €50 million debt swap), is dedicated to connecting large-scale renewable projects to the national grid. The funds will specifically cover the cost of linking two ACWA Power wind stations, capable of generating 1,100 MW of wind energy, to Egypt's national grid. This move aims to relieve foreign debt pressure by converting financial obligations into local investments in clean infrastructure. Other key allocations under the deal include: * €15 million grant to enhance credit guarantee mechanisms (Risk Management Mechanisms – Phase II) to better support Small and Medium-sized Enterprises (SMEs) and the broader private sector. * €20 million grant for the Solid Waste Management – Phase III Project, aimed at improving environmental protection and institutional structures for waste management across governorates. The new €123 million protocol is set to target diverse sectors, including land reclamation, housing, climate resilience, and sustainable economic development, underscoring the broad scope of bilateral cooperation. Attribution: Amwal Al Ghad English
