Egypt secures €294.5M partnership package with Germany to advance several sectors

Egypt and Germany have finalized a wide-ranging cooperation package valued at €294.5 million,  around EGP 16 billion, following a series of high-level governmental negotiations, according to the Ministry of Planning, Economic Development and International Cooperation.

The new agreements allocate €171.5 million in soft financing, debt swaps, and technical grants to support key development sectors, including renewable energy under the NWFE program, solid waste management, and initiatives to improve the investment climate.

The package also includes the signing of the 2024 Egyptian-German Negotiation Protocol, which provides an additional €123 million in soft loans and technical assistance for the upcoming phase.

Minister Rania Al-Mashat described the Germany visit as highly productive, noting progress on new program negotiations, the signing of executive agreements for major development projects, and further expansion of the debt-swap mechanism.

As part of the visit, a €50 million tranche of the Egypt–Germany Debt Swap for Development was signed between the Central Bank of Egypt, the Ministry of Electricity, the Egyptian Electricity Transmission Company, and the German Development Bank (KfW).

This tranche will finance the grid connection of the ACWA Power 1 & 2 wind farms, generating 1100 MW of clean energy, reducing external debt pressures while channeling funds into local renewable energy investments.

Another agreement worth €86 million, including €54 million in soft loans and €32 million in grants, was concluded to connect wind farms in Ras Ghareb and Gabal El-Zeit to the national grid.

The project aims to expand the grid’s capacity to integrate increasing volumes of renewable energy and advance Egypt’s shift toward a smarter, more resilient electricity network aligned with the Sustainable Energy Strategy 2035.

In support of private-sector growth, Al-Mashat also witnessed the signing of a €15 million grant for the “Risk Management Mechanisms – Phase II” project between the Central Bank of Egypt, the Credit Guarantee Company (CGC), and KfW.

The initiative focuses on strengthening credit-guarantee tools, supporting SMEs, and improving access to financing by reducing credit risks.

Environmental protection efforts were reinforced through a €20 million grant for Phase III of the Solid Waste Management Project, signed between the Central Bank, the Ministry of Environment, and KfW.