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Sunday, 25 July 2021

Tech, vocational education get more German funding

The German development bank KfW will provide EUR 41 mn to the Education Ministry over the coming year as part of a German-Egyptian debt-for-development swap program, the International Cooperation Ministry said in a statement. The funding will be allocated to three projects that aim to develop technical and vocational education in Egypt. The financing is the third tranche of the second stage of the debt swap program, and will be disbursed after the two sides agree on priority projects for funding.

What is the German-Egyptian debt for development swap program? The program was launched in 2011 when the two sides agreed to cancel EUR 240 mn in Egyptian debt owed to Germany, with the country instead allocating those funds to development projects in Egypt. The first EUR 70 mn phase has been received in full, and saw the implementation of projects targeting education and nutrition, the rehabilitation of hydroelectric stations, and the improvement of drinking water and sanitation services. The second phase saw KfW disbursed a first tranche worth EUR 10 mn to the Education Ministry to improve education, while the second EUR 80 mn tranche supported projects to develop human resources and improve sanitation in Upper Egypt.

Germany has pledged financing of EUR 1.7 bn for ongoing projects in Egypt covering various sectors, the statement said.

IN OTHER DEBT NEWS- Al Marasem Development signed this month EGP 3.3 bn-worth of Islamic financing agreements to finance real estate projects in the new administrative capital, according to Hapi Journal. Banque Misr and Banque du Caire provided over half of the funding, while AAIB, Bank of Alexandria, Housing and Development Bank, Al Baraka Bank Egypt, Suez Canal Bank, and Faisal Islamic Bank of Egypt also participated.

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