Egypt and China have signed a memorandum of understanding for $2 billion in infrastructure investment in the southern African country, the Ministry of Infrastructure and Transport said on Saturday.
The deal comes days after a summit between the two countries’ leaders in Mumbaikars capital of Nairobi to discuss regional infrastructure projects.
The two sides have also agreed to set up an infrastructure fund for projects worth $3 billion, which will be available to Egypt.
“We have agreed to the memorandum of the three countries,” the ministry said in a statement.
The memorandum of agreement for the project will include $1.5 billion in loan guarantees from China, $1 billion from the UAE and $600 million in additional loan guarantees.
“This memorandum will help to boost Egypt’s infrastructure and development,” said Egypt’s Minister of Economy Mohamed Morsy.
The signing comes days ahead of a summit of the United Arab Emirates, Egypt and Saudi Arabia in Mubarak’s capital of Riyadh to discuss an African strategy.
The countries are working to revive a stalled effort to revive Egypt’s stalled economy, which has slumped to a record low of $100 billion a year as a result of the devastating 2013 Arab Spring unrest.