Egypt, China strengthen cooperation with debt swap agreement

CAIRO - 19 October 2023: Egypt and China signed a memorandum of understanding (MoU) on development debt swaps. The signing took place during the 3rd Belt and Road Forum for International Cooperation, cementing the commitment of both nations to further collaboration in the field of debt swaps and development projects.

The primary objective of the MoU is to facilitate cooperation between Egypt and China in utilizing debt swaps as a means to implement crucial development initiatives. Through this strategic partnership, Egypt aims to achieve sustainable development by utilizing tranches of Chinese debt to fund mutually agreed-upon projects.

The MoU was signed by Rania Al-Mashat, Egypt's Minister of International Cooperation, and Lu Zhaohui, President of the Chinese International Development Cooperation Agency. This momentous agreement reflects the shared determination of both countries to explore new avenues of collaboration and strengthen their comprehensive strategic partnership.

The Ministry of International Cooperation (MOIC) in Egypt has already successfully implemented debt swap programs for development with Germany and Italy since 2001. These programs, valued at approximately $730 million, have facilitated the realization of numerous projects across various sectors of development. To date, a total of 120 projects have been implemented, with others currently underway.

In addition to the debt swap agreement, trade relations between Egypt and China have witnessed significant growth. According to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS), trade exchange between the two countries surged by 2.2 percent in 2022, amounting to $16.2 billion compared to $15.9 billion in 2021.

Furthermore, Egypt's exports to China experienced a remarkable increase of 25.1 percent, reaching $1.8 billion in 2022 as opposed to $1.5 billion in 2021. This underscores the expanding economic ties between the two nations and highlights the potential for further collaboration in the future.