Summary:

On 18 January 2026, Egyptian company Kemet and China’s GCL Suzhou Weicheng signed a $500 million agreement to establish a 280,000 m² industrial complex for manufacturing solar photovoltaic cells and modules in Egypt, with a planned production capacity of 5 GW.

The signing was witnessed by Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, during his visit to China. The project aims to support local production, facilitate knowledge transfer, and develop technological capabilities in the solar sector.

The project is part of Cairo’s broader renewable energy and industrial strategy, which includes plans for industrial localization and targets of 42% renewable energy in the national energy mix by 2030 and 65% by 2040. The initiative is also intended to make use of available natural resources and reduce reliance on fossil fuels.

Outlook: 

Egypt is pursuing renewable energy projects as the competition to attract foreign investment in this sector continues across North Africa with Morocco, Tunisia, Algeria, and Mauritania all pursuing projects.

The engagement with Chinese partners could increase its capabilities to emerge as an important producer of renewable energy technologies, strengthening its role in the North African and Mediterranean energy markets.

This aligns with its recent partnerships with international investors, where it signed several agreements to develop renewable energy technologies and expand its infrastructure, in line with government policies.

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