German Parliament approves Egypt's 3rd tranche of debt swap program for development worth €80M

CAIRO – 29 November 2020: The German Parliament recently approved the provision of the third tranche the debt swap program for development, which is worth €80 million and focuses on projects related to technical and vocational education and supporting job creation, according to Minister of International Cooperation, Rania Al-Mashat.

This came during Al-Mashat’s virtual meeting with Director General of the German Federal Ministry for Economic Cooperation and Development Claudia Farning, to discuss development financing priorities for the coming period and the launch the third tranche of the debt swap program for development.

During the meeting, both sides reviewed the projects that are underway in the first phase of the program that is worth €70 million, as well as the implementation of the projects agreed upon within the framework of the first and second tranches of the second phase, which are worth €90 million, targeting several sectors including education, clean water and sanitation, energy, infrastructure, and promoting employment.

Al-Mashat affirmed that the Ministry is committed to expand debt swap programs to reduce Egypt’s foreign debt through using these debts to finance development initiatives and achieve target 17.4 for Goal 17 for Partnerships for the Goals, related to assisting developing countries in attaining long-term debt sustainability.

The minister added the bilateral cooperation between Egypt and Germany covers a multi-sectoral array of projects in many vital areas, including renewable energy, energy efficiency, irrigation, water resources, improving sanitation, solid waste management and supporting the private sector, in addition to discussing the procedures for signing the memorandum of understanding for the Middle East and North Africa region to support the private sector through a grant worth €3 million in partnership with the Ministry of Trade and Industry.

It was also agreed to hold regular meetings to monitor and follow up on the developments related to Egyptian-German cooperation, particularly in regards to the status of ongoing projects and the Egyptian-German debt swap program. 

Al-Mashat stated that the Ministry of International Cooperation seeks to push the frontiers of international cooperation through economic diplomacy, according to three principles: regularly organizing multi-stakeholder platforms to ensure that all projects between development partners are streamlined and effectively coordinated to accelerate the pace of development for the achievement of UN’s Sustainable Development Goals (SDGs); adopting a consistent Global Partnerships Narrative People&Projects&Purpose (P&P&P); and mapping ODA financing to SDGs for all projects with multilateral and bilateral development partners.

For her part, Claudia Warning, praised the development cooperation programs implemented with the Arab Republic of Egypt, and the opening of the Egyptian German Center for Jobs, Migration and Reintegration, to enhance opportunities for safe migration, and provide job opportunities to curb illegal immigration, noting To Germany's keenness to support the development efforts of the Egyptian government.

In November 2020, the Egyptian German Center for Jobs, Migration and Reintegration was launched, with a total budget of €2 million, as part of the cooperation between the Egyptian government represented by the Ministry of International Cooperation, the Ministry of Immigration and Egyptian Expatriates Affairs, Ministry of Foreign Affairs, and the German government. The center helps to promote safe and orderly migration opportunities for Egyptian youth and provide job opportunities to curb illegal migration, and helps Egyptians abroad to integrate into society by providing the necessary social and economic services

The Ministry of International Cooperation recently held an expert-level meeting with the German Federal Ministry for Economic Cooperation and Development, with the participation of representatives of the relevant Egyptian ministries and authorities and German governmental and development institutions, where it was agreed that development financing worth €132.8 million will be dedicated to finance 11 new projects to promote technical and vocational education, enhance community participation, and invest in job creation through supporting the private sector.

The current cooperation portfolio between Egypt and Germany amounts to $956.8 million, across several sectors including water sanitation, SMEs, environment and clean energy.