Since its establishment, the AICS Cairo Office has played a key role in managing the Debt Swap Programme, which over the past 25 years has become one of the main pillars of the Italian–Egyptian partnership. Since 2001, through three successive agreements, the Programme has enabled the conversion of approximately $350 million of debt into resources that have funded the implementation of over 110 development initiatives in sectors of strategic importance to the country.
Phase Three covered debt instalments due between April 2012 and January 2021, with a nominal value of $100 million. The instalments, converted into local currency and paid into a dedicated Counterpart Fund at the Central Bank of Egypt, generated funds totalling over 926 million Egyptian pounds (EGP), which were added to the approximately E£ 51 million left over from the previous Agreement.
These resources were invested in 30 initiatives in the sectors of food security (45%), the agri-food sector (15%), technical education (17.5%), environmental and cultural heritage (10.5%) and civil society (10%), as well as covering the Programme’s operational and technical assistance costs (2%).
Among the main initiatives carried out, the following are worth noting: the construction of six grain storage facilities and the simultaneous development of a pilot-scale information system for the governance of the national cereal reserves; the creation of two integrated aquaculture districts in Alexandria and Port Said; and support for the reform of technical education, through the establishment of the Applied Technology Schools (ATS) Management Unit within the Ministry of Education and Technical Education, which has overseen the formalisation of more than
80 schools based on public-private partnerships; as well as a wide range of initiatives by Italian and Egyptian civil society organisations in areas such as women’s economic empowerment, youth entrepreneurship and child protection.
While the disbursement of funds to the projects and the definitive cancellation of the debt were completed in December 2024, in accordance with the terms and procedures set out in the Agreement, seven initiatives are still ongoing to date, with a total value of over $14 million.
Of particular note is the expansion of three initiatives already launched with previous Italian funding: this is the case of the Inclusive Green Growth (IGGE) initiative, implemented by UNIDO, which supports the launch and expansion of SMEs operating in the circular economy; the Strengthening the Wadi El Gemal National Park initiative, implemented by UNDP as a continuation of the Environmental Cooperation Programme (EIECP); the PLAY 2 initiative, implemented by IOM, which supports the establishment of an Applied Technology School for the tourism and hospitality sector in Fayyum.
Work is also continuing in the agri-food sector, including the construction of an aquaculture facility for red tilapia farming in North Sinai and initiatives to improve the quality of agricultural production through vegetable-seed development and the establishment of laboratories for pesticide and heavy-metal residue analysis, implemented as a parallel financing initiative to the EU-ZIRA3A delegated cooperation programme managed by the Office.
In the cultural heritage sector, a further initiative supports the diversification of Egypt’s tourism offer, helping improve access to the archaeological sites of Abu Sir and Abu Ghorab, which form part of the necropolis of Memphis.
Finally, with the remaining funds from the previous Agreement, the Programme is also supporting the strengthening of the private sector via the HAFIZ platform (see project box).
Meanwhile, in light of the interest expressed by the Egyptian Government in launching a new phase, Italy has confirmed Egypt as one of the beneficiary countries of the new “Debt Relief for Africa” initiative, announced at the Rome Summit on the Global Gateway and the Mattei Plan on 20 June 2025.
As part of this initiative, the Egyptian component, currently under negotiation, will have an allocation of €7.31 million euros, corresponding to 50% of the instalments due between 2026 and 2035.