Egyptian Government Signs USD 40 Billion Deals to Develop Green Energy

The Ministry for Planning and Economic Development has recently signed seven deals that are worth approximately USD 40 billion. The deals are aimed at developing renewable energy and green hydrogen projects in the Suez Canal Economic Zone over the next decade. The initial phase of investment is expected to be around USD 12 billion, with an additional USD 29 billion to follow in the future. These agreements are the latest efforts to promote Egypt as a regional hub for green energy, following the launch of Africa's first integrated green ammonia production plant back in November 2023.

The government has recently doubled the incentives provided for green hydrogen projects and their derivatives, to attract USD 35 billion in direct foreign investment over the next five years. The government is expecting an annual increase of 15% to 20% year-on-year. This move is expected to boost economic growth and reinforce foreign currency reserves to cover foreign debts.