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Egypt, Germany explore means to push forward EUR 80m debt swap scheme

Egypt, Germany explore means to push forward EUR 80m debt swap scheme
The current cooperation portfolio between Egypt and Germany reaches $956.8 million

Cairo – Mubasher: Egypt’s Minister of International Cooperation, Rania El-Mashat, held a virtual meeting with Claudia Warning, Director General of the German Federal Ministry for Economic Cooperation and Development, Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ), to discuss development financing priorities for the coming period and the launch of the third tranche of the debt swap programme for development.

The German Parliament recently approved the provision of the third tranche, which is worth EUR 80 million and focuses on projects related to technical and vocational education and supporting job creation, El-Mashat stated in a statement on Sunday.

During the meeting, both sides reviewed the projects that are underway in the first phase of the programme that is worth EUR 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 EUR 90 million, targeting several sectors including education, clean water and sanitation, energy, infrastructure, and promoting employment.

El-Mashat affirmed that the ministry is committed to expand debt swap programmes to reduce Egypt’s foreign debt through using these debts to finance development initiatives and achieve target 17.4 for the 17th goal 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 EUR 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 programme.

El-Mashat stated that the Ministry of International Cooperation seeks to push the frontiers of international cooperation through economic diplomacy, according to three principles: regularly organising 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, and Purpose (P&P&P); and mapping ODA financing to SDGs for all projects with multilateral and bilateral development partners.

In the same context, Claudia Warning, Director General of the German Federal Ministry for Economic Cooperation and Development, praised the development cooperation programmes implemented with 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, referring 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 EUR 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, and Ministry of Foreign Affairs, and the German government. The centre 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 EUR 132.8 million will be dedicated to financing 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.