The German Development Bank (KfW), on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has signed a €54 million debt swap agreement with Egyptian Ministries of International Cooperation and Electricity and the Central Bank of Egypt (CBE), according to a statement by the German embassy in Cairo on June 25th.

The agreement exempts Egypt from repaying debts of €54 million to instead use this amount in financing the transition to green energy.

The debt swap will support the Egyptian government to achieve its goal of generating 42% of electricity from renewable sources by 2030.

During the COP27 held in Sharm El-Sheikh in November 2022, the German government pledged to highly contribute to Egypt's Nexus on Water, Energy, and Food (NWFE) program.

Accordingly, Germany provided a financing package of over €250 million, including debt relief, grants, and concessional loans.

 

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