Egypt and China have discussed the potential conversion of a portion of Egypt’s external debt into interest-free loans for development initiatives.
The discussions were revealed by Chinese Ambassador to Egypt, Liao Liqiang, following a meeting held on Wednesday April 23 in Cairo with Egypt’s Minister of Investment and External Trade, Hassan El-Khatib.
The scheme under consideration would support essential projects while easing Egypt’s financial burdens. The initiative would follow a previous agreement signed in October 2023, in which similar debt-for-development arrangements had already been secured with China, as well as with Germany and Italy.
Economic cooperation between the two nations has been further underscored by Ambassador Liqiang’s remarks on the growing interest shown by Chinese companies in expanding their footprint in Egypt. Particular emphasis was placed on joint ventures in advanced technology sectors, such as 5G infrastructure and satellite systems. These partnerships are being framed within the broader context of Egypt’s strategic alignment with China through multilateral platforms like BRICS and the Belt and Road Initiative. Employment creation in the Egyptian market and the mutual transformation of economic challenges into opportunities have also been prioritized by China as part of its collaborative efforts.
Minister El-Khatib on his part called for deeper strategic cooperation in industries considered vital to Egypt’s long-term economic vision, including the automotive, battery production, and renewable energy sectors. The importance of institutionalizing economic dialogue through an annual business forum was stressed, with the aim of enhancing public and private sector engagement across both countries.
Additionally, it was confirmed that a high-level visit to China is being planned by the Egyptian side to present the nation’s investment roadmap and expand trade relations with key Chinese provinces.