Egypt and Germany have strengthened their economic partnership with the signing of agreements worth a total of €77.3m, aimed at supporting development across multiple sectors. The agreements include a debt swap and grant funding for projects focused on technical education, health, and social services. The signing ceremony, which took place on Monday, was attended by Rania Al-Mashat, Minister of Egypt's Planning, Economic Development, and International Cooperation, as well as Mohamed Abdel-Latif, Minister of Education and Technical Education, and Jürgen Schulz, the German Ambassador to Cairo, alongside officials from the German Development Bank (KfW). The agreements include a €48.3m package for the Comprehensive Technical Education Initiative Project, consisting of €16.31m for Technical Support for the initiative and a €32m grant to support the second phase. A separate €29m Debt Swap Agreement was also signed to support health and social services. The Technical Support project, spanning from 2024 to 2028, is focused on enhancing the efficiency and quality of Egypt's technical education system. This is part of a long-term cooperation between Egypt and Germany under the 'New Comprehensive Technical Education Initiative', established in 2018. The €32m grant will also be used to support the Comprehensive Technical Education Initiative's second phase. This phase aims to transform technical and vocational training through infrastructure improvements, including the construction of new green buildings and the rehabilitation of existing ones in line with sustainability standards. The grant will also fund modern equipment, such as the establishment of up to three Centers of Excellence, that will offer advanced practical and vocational training. These centres will operate in close cooperation with private sector companies to ensure the training programs meet labour market demands. Financial cooperation between Egypt and Germany in the field of technical education has reached approximately €121.5m to date. The €29m Debt Swap Agreement will go towards a project that aims to enhance national capacities in providing quality education, health, and nutrition services. This project will support social cohesion and resilience for crisis-affected populations and their host communities. It will benefit the Ministries of Social Solidarity, Health and Population, and Education and Technical Education, along with international partners such as UNICEF and the World Food Programme (WFP). Al-Mashat stated that the partnership with Germany is "pivotal for achieving economic development and advancing climate action efforts." She emphasised that the Debt Swap Program with Germany is a "practical step toward restructuring the global financial system." Since 2012, the program has been implemented across three phases, benefiting sectors such as education, health, and food security, making it a model for other countries. The Minister highlighted the increasing importance of debt swaps for middle-income countries given the need for restructuring the global financial system. She noted that Egypt and Germany are presenting a model of this cooperation and cited the significant progress in Egyptian-European relations under the "Team Europe" initiative, especially since the relationship was elevated to a strategic partnership in March. Al-Mashat also stressed the importance of the grant for technical education, stating that it aligns with Egypt's efforts to localise industry, achieve industrial development, and focus on technical education and skills development. This, she said, would have a positive effect on increasing exports and achieving sustainable growth. The Debt Swap Program with Germany is managed through a governance structure that ensures optimal implementation of agreements and maximum benefits. This involves coordination between the Ministry of Planning, Economic Development, and International Cooperation and the German side on projects, negotiations with the German Development Bank, and national beneficiary entities, including finalising technical details and financial agreements.
