Egypt, Germany sign €77.3 mln debt swap deal to support education, health sectors

Ahram Online , Tuesday 17 Dec 2024

Egypt and Germany have signed a debt swap agreement worth 77.3 million euros to support various developmental sectors, including education, health, and social services, according to a statement by the Ministry of Planning, Economic Development, and International Cooperation on Monday.

Egypt, Germany

 

The agreement includes funding two projects to advance sustainable development and achieve Egypt's National Development Strategy goals.

The statement revealed that an executive agreement and grant totalling 48.3 million euros have been allocated for the Comprehensive Education Initiative Project, which has been divided into two subprojects.

The first project, "Technical Support for the Comprehensive Technical Education Initiative with Egypt – Phase II," valued at 16.31 million euros, aims to improve the efficiency, quality, and relevance of Egypt's technical education system. This project, which will run from 2024 to 2028, is part of a long-term cooperation initiative between Egypt and Germany launched in 2018.

The second project, “Financial Support for the Comprehensive Technical Education Initiative – Phase II,” is funded with a 32-million-euro grant. This project focuses on developing technical education and vocational training in Egypt as part of a three-phase programme to transform technical education.

It includes improving infrastructure through sustainable construction of new green buildings or rehabilitating existing ones, equipping facilities with modern tools, and establishing up to three centres of excellence for advanced vocational training. These centres will collaborate with private sector companies to align training with labour market needs.

Financial cooperation between Egypt and Germany in technical education has reached approximately 121.5 million euros.

Debt swap agreement
 

A debt swap agreement worth 29 million euros was signed for the project "Enhancing National Capacities to Provide High-Quality Education, Health, and Nutrition Services to Support Social Cohesion and Resilience for Crisis-Affected Populations and Their Host Communities."

This agreement involves the Ministries of Social Solidarity, Health and Population, and Education and Technical Education and international partners, such as UNICEF and the World Food Programme (WFP).

Rania Al-Mashat, minister of planning, economic development, and international cooperation, stated that the debt swap programme with Germany is a practical example of the global calls for restructuring the financial system. Since 2012, three phases of the programme have been implemented, benefiting sectors such as education, health, food security, and other priority areas, making it a model for other countries.

Al-Mashat highlighted that debt swaps have become a priority for middle-income countries in light of global financial system restructuring demands. She noted that Egypt and Germany’s cooperation reflects strengthened Egyptian-European ties under the "Team Europe" initiative and the strategic partnership established in March.

The minister also highlighted that the grant aligns with Egypt’s efforts to localize industry, achieve industrial development, and focus on technical education and skills development, which will foster exports and sustainable growth.

The debt swap programme with Germany is managed through a governance structure to ensure optimal implementation and maximize benefits. This includes coordination between the planning ministry, the German side, the German Development Bank (KfW), and national beneficiary entities and finalizing technical details and financing agreements.

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