The German Development Bank (KfW), on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), signed a debt swap agreement worth EUR 54 million (EGP 1.8 billion) with the Ministry of International Cooperation, the Ministry of Electricity and Renewable Energy, and the Central Bank of Egypt. This agreement exempts Egypt from repaying debts amounting to EUR 54 million (EGP 1.8 billion) owed to Germany, enabling it to allocate the funds towards bolstering the transition to green energy in Egypt instead. A press release issued by the German Embassy in Cairo stated that the German government had pledged during the COP27 International Climate Conference in Sharm El-Sheikh in November 2022 to make a significant contribution to Egypt’s “Nexus of Water, Food, and Energy” (NWFE) initiative. In line with this commitment, Germany has agreed to provide a total financing package of over EUR 250 million (EGP 8.4 billion) for the same purpose, including debt relief as well as concessional grants and loans. NWFE is a multi-billion dollar food and agriculture initiative presented by the Government of Egypt at COP 27 in November 2022 that aims to facilitate the shift…
Egypt and Germany Seal EUR 54 million Debt Swap Agreement to Facilitate Green Energy Transition
June 26, 2023
