5 days ago
Egypt, Germany Advance Green Energy Ties with €21 Million Debt Swap Deal
CAIRO – 26 May 2025: Egypt has signed a new €21 million debt swap agreement with Germany, further strengthening their long-standing development cooperation. The agreement brings together the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company, and Germany's KfW Development Bank.
This funding will help bolster Egypt's renewable and sustainable energy infrastructure, supporting efforts to enhance energy security and transition to cleaner sources.
With this latest deal, the total value of debt swap tranches executed between the two countries now stands at approximately €297 million—equivalent to around EGP 16.8 billion.
Minister of Planning, Economic Development, and International Cooperation, Dr. Rania Al-Mashat, stressed the significance of the agreement, noting it extends a development partnership that began in 2011 and has since delivered numerous impactful projects.
The agreement aligns with Germany's €250 million pledge at COP27 to support Egypt's NWFE (Nexus of Water, Food, and Energy) program, including €104 million allocated through debt swaps.
One of the program's milestones came in 2023 with a €54 million agreement to expand Egypt's electricity transmission network and connect two major Red Sea wind farms—Noes and Amunet, with a combined capacity of 500 MW—to the national grid.
A second tranche under the NWFE platform, valued at €50 million, is currently in the works.
The Egypt-Germany debt swap program is governed by a structured framework that ensures effective implementation and optimal use of funds. The Ministry of Planning plays a leading role in coordinating project selection, conducting negotiations with KfW, and managing the technical and financial components in collaboration with national stakeholders.
