Egypt to receive $500 million from Germany to support economic development

CAIRO - 5 March 2017: Egypt is set to receive half a billion dollars from Germany to support the government’s economic program and small and medium-sized businesses, Minister of Investment and International Cooperation Sahar Nasr announced Friday, according to a Ministry press release.


At the Egyptian-German business forum held on the occasion of German Chancellor Angela Merkel’s visit, Nasr expressed her anticipation to boost German investments in Egypt. She emphasized that economic cooperation includes vocational training, building capacities and increasing the skills of Egyptian laborers.


“It was agreed with Germany to provide $250 million to support the government's economic program and $250 million to support several sectors, including micro, small and medium enterprises, as well as to provide more support for Egyptian labor,” the press release said.


Germany currently ranks 20th among the countries investing in Egypt in terms of the dollar amount of investment.


“German support will come in the form of grants and concessional funds,”

a government official told Reuters

.


Nasr emphasized that investments require actual implementation of the law, working on eradicating the bureaucracy and dealing with the challenges faced by the private sector. She stressed that her office is open for all investors from Germany and elsewhere.


Merkel arrived in Cairo Thursday on her first visit to Egypt since 2007. The German Chancellor met with Egyptian President Abdel Fatah al-Sisi and other top officials.


Merkel and Sisi inaugurated the

first phase of the Siemens power plants

, located in Beni Suef, Borollos and the New Administrative Capital, which will add a generation capacity of 4,800 MW to the national grid, and is expected to be completed and connected to the grid by the end of October 2017.


Merkel’s visit is part of a wider plan to increase German investments in Africa, advance cooperation and intelligence sharing against Islamic terrorism, and control migration into Europe, Reuters reported.


Economic development in the African content is a priority on Germany’s agenda as president of the G20 group of industrialized countries this year.