China has discussed with Egypt about the possibility of turning some of Egypt’s foreign debt into interest-free loans for economic projects.
The talks were revealed after a high-level meeting on April 23 between Chinese Ambassador to Egypt, Liao Liqiang, and Egypt’s Minister of Investment and External Trade, Hassan El-Khatib.
The debt conversion proposal is intended to ease Egypt’s financial burdens while channeling funds toward vital development projects.
This initiative builds upon a previous agreement signed in October 2023, where Egypt became the first country to enter into a debt-for-development swap with the China International Development Cooperation Agency (CIDCA). Egypt has also entered similar agreements with Germany and Italy, targeting key sectors such as energy, water, and food security.
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Ambassador Liqiang highlighted China’s continued interest in the Egyptian market, especially in the fields of advanced technology, including 5G infrastructure and satellite systems. He emphasized that these initiatives fall within the broader cooperation frameworks of BRICS and the Belt and Road Initiative, which both countries are members of.
The ambassador also highlighted the importance of creating employment opportunities and using economic cooperation as a tool to overcome financial challenges.
Minister El-Khatib, meanwhile, stressed the need to expand strategic collaboration in areas crucial to Egypt’s economic future, such as the automotive industry, battery manufacturing, and renewable energy. He also proposed the establishment of an annual Egypt-China business forum to foster regular dialogue and cooperation between both nations’ public and private sectors.
Looking ahead, a senior Egyptian delegation is scheduled to visit China to present Egypt’s investment roadmap and deepen trade relations with key Chinese provinces.
