Monday April 22nd, 2024
Download SceneNow app

Egypt Receives USD 6 Billion for Renewable Energy Investment Licenses

Egypt's goal is to double the number of golden licences granted and double the count of licences in 2024.

Cairo Scene

Egypt Receives USD 6 Billion for Renewable Energy Investment Licenses

International and Gulf investors have made requests for new licences to invest in renewable energy projects worth over USD 6 billion, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). 

These requests come from various alliances, including European-Gulf, Chinese and Indian partnerships, each seeking licences for projects valued at USD 2 billion.

In an interview with Asharq Business, Heiba revealed that the influx of investments seeks to address Egypt's domestic energy needs while also enabling the export of green energy. The private sector is currently undertaking renewable energy projects worth USD 4.4 billion, set to boost the country's total renewable energy capacity to 10,000 megawatts by the end of 2025, as stated by Egypt's Minister of Electricity and Renewable Energy, Mohamed Shaker, in October 2023.

Heiba emphasised Egypt's goal to double the number of golden licences granted, planning to increase the count from 25 licences in 2023 to over 50 licences in 2024. Currently, GAFI issues an average of three to five golden licences per month.

To encourage investment and attract more foreign currency, GAFI will be introducing new licences tailored to entrepreneurs, while also offering additional incentives for the tourism and environmental sectors. Egypt's cabinet is currently reviewing the approval of 10 new golden licences that would be accessible to all sectors.

The Egyptian government is aiming to increase the private sector's contribution to the economy from 60 percent to 90 percent between 2024 and 2030 by actively courting foreign investments, with a particular focus on Gulf nations, to stimulate economic recovery and fulfil its obligations under a USD 3 billion loan agreement with the International Monetary Fund (IMF) signed in 2022.