Egypt and China signed a memorandum of understanding (MoU) on the sidelines of the third Belt and Road Forum for a debt swap to fund development projects.
The agreement was signed between China International Development Cooperation Agency and Egypt’s Ministry of International Cooperation.
Previous debt swap agreements with Germany and Italy were signed to fund national development programmes, including the Nexus on Water, Energy and Food (NWFE).
Egypt’s external debt reached $165.3 billion in March. The country has to pay $71.6 billion in debt service in the coming three years, including $29.23 billion in 2024.
Cooperation with China has spiked since Egypt was invited to join the BRICS in August.
During a recent visit to China by Egyptian Prime Minister Mostafa Madbouly, the Suez Canal Economic Zone inked agreements worth up to $14.75 billion with Chinese partners.
The zone also signed a letter of intent (LOI) and three framework agreements with Chinese companies to establish industrial projects with $2.75 billion in investments.
Egypt-China trade increased by 2.6 percent during the first 11 months of 2022, hitting $14.9 billion, up from $14.5 billion during the same period in 2021.
