In a highly anticipated joint press conference held in Cairo, Egypt reaffirmed its strategic alliance with the Federal Republic of Germany, signaling a new phase of economic, environmental, and financial cooperation between the two regional powers. The event brought together Egypt’s Minister of Planning and International Cooperation Dr. Rania Al-Mashat, Foreign Minister Dr. Badr Abdel Aty, and German Development Minister Svenja Schulze, in what officials described as a defining moment for bilateral relations.
Minister Schulze’s visit, her first outside Europe since assuming office, underscored Germany’s enduring commitment to Egypt as a critical partner in the Middle East and North Africa (MENA)—particularly as both nations navigate volatile regional dynamics and global economic recalibration.
Strategic Ties Anchored in Investment
The Cairo dialogue set a renewed tone for bilateral cooperation, extending far beyond diplomacy. With over 1,600 German companies operating in Egypt and investments exceeding €6 billion, the two nations are deepening their economic integration across energy, manufacturing, and sustainable infrastructure.
Among the headline investments are global industrial giants such as Siemens, Mercedes-Benz, Bosch, and Bayer, which continue to expand their presence across Egypt’s growing economy. Bilateral trade currently stands at €6.8 billion, reflecting robust commercial ties.
Debt-for-Development and a New Financing Horizon
One of the standout achievements of the partnership is the long-standing debt swap program, now valued at €340 million, with a fresh €100 million tranche scheduled for activation between December 2025 and June 2026. The program has funded projects in technical education, healthcare, climate adaptation, and water infrastructure—and is increasingly viewed as a global model for innovative development finance.
Egypt was an early adopter of the debt-for-development model, ahead of international calls for such mechanisms to relieve fiscal pressure on emerging economies.
NOVI Platform and the Green Transformation
At the core of Egypt’s cooperation with Germany lies the NOVI platform—a national initiative to mobilize green investments launched during COP27 in Sharm El-Sheikh. Germany has committed €258 million in grants, concessional loans, and debt swaps to support energy transformation projects under NOVI, which aims to deliver 10 GW of renewable capacity by 2028.
One of the flagship initiatives under this platform is the green hydrogen project in the Suez Canal Economic Zone, backed by Germany’s PtX Development Fund with a €30 million investment into Norwegian energy firm Scatec. The plant, built in partnership with Fertiglobe, Orascom Construction, TSFE, and the Egyptian Electricity Transmission Company, will produce up to 70,000 tons of green ammonia annually, reducing emissions by an estimated 140,000 tons of CO₂ and creating 1,300 new jobs.
Guaranteeing Private Investment: EFSD+ and Beyond
Egypt is also pushing the envelope on private sector-led development, leveraging new financial instruments under the European Fund for Sustainable Development Plus (EFSD+), which offers risk guarantees to attract foreign capital.
“We’re not just unlocking capital—we’re de-risking entire sectors,” said Al-Mashat, referencing a recently launched investment guarantee platform developed in collaboration with the European Union and Germany to channel blended finance into climate-resilient infrastructure and industrial growth.
German-Egyptian Cooperation in Technical Education and Human Capital
Another cornerstone of the bilateral relationship is the long-term partnership with GIZ, Germany’s international cooperation agency, focused on upskilling Egypt’s labor force. Through initiatives such as the EGT Academy, a public-private partnership with Siemens Energy, Egypt is building a generation of engineers, technicians, and climate professionals capable of operating in an advanced industrial ecosystem.
In May 2025, both countries signed a €118 million cooperation agreement, including:
- €32 million to expand Centers of Excellence in technical and vocational education.
- €86 million in combined grants and soft loans to connect AquaPower wind projects (1,100 MW) to Egypt’s national grid, reinforcing NOVI’s energy pillar.
A New Round of Strategic Negotiations
Looking ahead, Cairo and Berlin are preparing for a new round of intergovernmental negotiations slated for late 2025, aimed at defining the roadmap for economic cooperation over the next five years. Key agenda items include expanding development financing for Egypt’s private sector, enhancing climate adaptation, and boosting Egypt’s export capacity through industrial diversification.
Al-Mashat also pointed to strong economic indicators in the first nine months of Egypt’s fiscal year 2024/2025, crediting macroeconomic reforms and external partnerships—including Germany’s support—for renewed investor confidence.
