EUR 100 Million Debt Swap With Germany to Fund Projects in Egypt

Egypt is moving forward with the second phase of its debt swap agreement with Germany, converting EUR 100 million into development investments. Half of the amount is set to be channelled into projects by the end of this year, with the remainder to follow by June 2026.

The update was shared by Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, who noted that the total volume of German debt allocated for conversion now exceeds EUR 340 million, with key focus areas including healthcare, vocational education, and climate-oriented initiatives.

The debt swap programme is structured so that project ownership remains entirely with Egypt, and each initiative is selected to match national development priorities. German-Egyptian cooperation spans beyond this programme, with Germany maintaining investment and trade links that include more than 1,400 German companies active in the country and bilateral trade exceeding EUR 7 billion.

Debt swaps, used globally, allow countries to redirect foreign debt payments into domestic investments, often in partnership with donor governments. Egypt and Germany have maintained similar agreements since the early 2000s.