Egypt has taken a decisive step towards deepening its clean energy transition with a US$500 million agreement with China to establish a large-scale solar manufacturing hub, strengthening both renewable energy deployment and industrial localisation.
The partnership, signed on 18 January 2026, brings together Egypt’s Kemet and Suzhou Wuzhong, a subsidiary of China’s GCL Group, one of the world’s leading solar technology firms. The agreement was formalised during an official visit to China by Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, underscoring the strategic importance Cairo places on renewable manufacturing as part of its long-term energy and climate agenda.
At the heart of the deal is the development of a fully integrated solar industrial complex covering roughly 280,000 square metres. Once operational, the facility is expected to produce solar cells and photovoltaic (PV) modules with a combined annual capacity of up to 5 gigawatts. Such scale places the project among the most ambitious solar manufacturing investments in the region.
For Egypt, the project goes beyond boosting installed solar capacity. By localising the production of key components, the country aims to reduce its reliance on imported renewable technologies, build domestic industrial capabilities and capture greater value across the clean energy supply chain, challenges that continue to face many emerging markets pursuing energy transitions.
Crucially, the agreement also includes commitments on technology transfer, workforce training and research collaboration. These elements are intended to support skills development and innovation, positioning the hub not only as a manufacturing site but also as a centre for advanced renewable expertise. According to Minister Esmat, the initiative aligns with Egypt’s National Energy Strategy, which prioritises private-sector participation and industrial development alongside decarbonisation.
The solar manufacturing hub forms part of a wider wave of clean energy investments in Egypt, including projects focused on battery storage systems and electrical grid equipment. Together, these efforts are designed to reinforce the country’s renewable energy value chain while supporting emissions reductions.
Egypt has set ambitious targets to generate more than 42 per cent of its electricity from renewable sources by 2030, rising to 65 per cent by 2040. As climate pressures intensify and energy demand continues to grow, the new solar manufacturing partnership positions Egypt to enhance energy security at home while emerging as a regional supplier of clean energy technologies for Africa and the Middle East.
