Il Nuovo Postiglione - Egypt and Germany Deepen Economic Ties Through Investment and Trade Growth

Egypt and Germany are advancing their economic relationship beyond traditional commerce toward long-term development and investment cooperation, with a strategic focus on socio-economic stability and green growth. German Ambassador to Egypt Jürgen Schulz described the partnership as being built on mutual agreement and shared priorities, emphasizing that Cairo remains one of the most important partner countries for German development cooperation.

A central component of this strengthened tie is the use of debt-swap mechanisms to finance development initiatives. Schulz confirmed that a total of €254 million has been committed and is currently being implemented in Egypt. Of this sum, €154 million is allocated to the energy sector through the NWFE platform. This funding supports critical infrastructure projects, including electricity grid modernization, which aims to strengthen Egypt’s energy infrastructure, improve efficiency, and facilitate the integration of renewable energy sources.

The ambassador noted that promising negotiations are underway between the two governments to redirect upcoming debt repayment obligations toward development financing in Egypt via this mechanism. While he declined to anticipate specific outcomes before consulting the Egyptian government, he affirmed that such decisions require agreement from both partners and expressed Germany’s willingness to continue the successful partnership.

Bilateral trade figures reflect sustained growth in commercial exchanges between the two nations. According to the latest available German data, total trade volume is projected to rise from €5.5 billion in 2024 to €6 billion in 2025. Both German exports to Egypt and Egyptian exports to Germany increased by approximately 10 percent during this period. Specifically, Egyptian exports grew from €1.54 billion to €1.64 billion, while German exports to Egypt rose from €3.92 billion to €4.38 billion.

Although 2026 trade figures are not yet available, Schulz indicated that expectations point to a continuation of this positive trend. He attributed the robust commercial relationship to Germany’s position as one of Egypt’s leading trade partners and its status as the country’s most important tourist market.

Air connectivity between Cairo and Berlin has expanded significantly to support these ties. German airlines are among the carriers operating the highest number of flights to Egypt, with several major adjustments in route networks. The Lufthansa Group recently launched flights from Munich to Cairo and is preparing to introduce a direct route from Brussels. Condor is increasing its flight frequency to Hurghada, while TUIfly regularly connects passengers to Luxor, Marsa Alam, and Sharm El-Sheikh. These services complement EgyptAir’s frequent operations to Germany, creating a stronger aviation link than ever before.

Regarding investment prospects, Schulz highlighted several sectors attracting particular attention from German businesses. Key areas include renewable energy, electricity transmission and grid modernization, logistics, automotive suppliers, digital services, manufacturing, and healthcare-related industries. He noted that while individual investment decisions are made independently by private companies and cannot always be disclosed in advance, these sectors closely align with Egypt’s economic modernization efforts and sustainability objectives.

M.Costa--INP