Egypt has signed a new debt swap agreement with Germany as part of their ongoing debt swap program. The agreement, worth €21 million, was signed between the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company, and Germany’s KfW Development Bank.

The funds will contribute to improving sustainable and renewable energy supply in Egypt.

With this latest agreement, the total value of implemented debt swap tranches between Egypt and Germany has reached approximately €297 million—equivalent to around EGP 16.8 billion.

Rania Al-Mashat, Minister of Planning, Economic development and International Cooperation, emphasized the importance of this agreement, noting that it builds on a cooperation path that began in 2011, through which many development projects have been successfully completed.

During the COP27 Climate Conference, the German government pledged €250 million to support the energy pillar of Egypt’s national NWFE platform, including €104 million in the form of debt swaps.

In 2023, a €54 million agreement was signed to support investment in Egypt’s power transmission network and connect two wind power projects—Noes Wind Farm and Amunet Wind Farm (500 MW total capacity) in the Red Sea—to the national grid.

Currently, the second tranche of the debt swap under the NWFE program is under preparation, with a planned value of €50 million.

The debt swap program with Germany is managed under a robust governance structure designed to ensure optimal implementation and maximum benefit.

The Ministry of Planning and Economic Development plays a central role in coordinating with the German side on project selection, negotiating with KfW and national beneficiaries, and finalizing the technical and financial details of the agreements.