Egypt is ramping up investment in its electricity and renewable energy sector, targeting EGP 136.3 billion (about $2.8 billion) for fiscal year 2025/2026, according to Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat.
The announcement underscores Egypt’s commitment to strengthening its energy infrastructure, expanding renewable capacity, and positioning itself as a regional clean-energy leader in Africa and the Middle East.
Steady Growth in Energy Investment
Actual investment in the sector reached EGP 95.8 billion in FY 2023/2024, with EGP 72.6 billion earmarked for FY 2024/2025. The sharp planned increase for 2025/2026 reflects Egypt’s strategy to accelerate energy diversification and support industrial competitiveness through stable power generation and grid modernization.
The plan also aims to grow the sector’s total output from EGP 655.6 billion in FY 2025/2026 to EGP 984.5 billion by FY 2028/2029, representing an annual growth rate between 15 % and 20 %.
“Egypt’s investment priorities align with our vision for sustainable growth — building capacity in energy that powers industries, households, and innovation,” Al-Mashat said.
Renewables Driving Egypt’s Economic Future
Renewable energy is expected to play an increasingly central role in Egypt’s economic transformation. The government is prioritizing:
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Solar and wind expansion projects in the Red Sea and Western Desert;
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Hydrogen production partnerships with Gulf and European investors;
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Grid upgrades and regional interconnectors linking Egypt to North Africa and the Levant; and
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Public-private partnerships (PPPs) that integrate diaspora and institutional capital into large-scale clean-energy ventures.
These projects aim to lower energy costs, reduce carbon intensity, and open export pathways for green electricity and hydrogen, positioning Egypt as an energy bridge between Africa, Europe, and the Middle East.
Rising Contribution to GDP
The energy sector’s direct GDP contribution is projected to reach nearly EGP 285 billion in FY 2025/2026 and EGP 430 billion by FY 2028/2029 — a 50 % increase within four years.
This growth reinforces Egypt’s broader economic goal of raising total exports to $140 billion by 2030 through diversified production, sustainable infrastructure, and technology-driven industries.
A Magnet for Diaspora and Climate-Aligned Capital
The expansion of Egypt’s electricity and renewables sector presents an important opportunity for diaspora investors and impact-finance institutions seeking exposure to climate-resilient infrastructure.
Through frameworks such as the Suez Canal Economic Zone (SCZONE) and sovereign green-bond programs, Egypt continues to attract investors looking to back long-term energy transformation projects across Africa.
“Investing in Egypt’s clean-energy sector is not only profitable — it contributes directly to Africa’s energy independence and global decarbonization goals,” the minister noted.
Powering Africa’s Energy Transition
As nations worldwide pursue carbon neutrality, Egypt’s renewable-energy blueprint exemplifies how African economies can align climate action with inclusive growth.
By mobilizing both public and private capital — including diaspora-led funds — Egypt aims to anchor the continent’s green industrialization drive and secure its place among the world’s leading energy-transition economies.
