Egypt will begin solar panel production in early 2026 with a local component rate of up to 90%, according to Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI). Heiba said the move marks a significant step in Egypt's transition toward renewable energy, supported by recent legislative and procedural reforms that have strengthened the country's investment climate. Heiba announced that several solar panel factories are scheduled to start operations in the first quarter of 2026, adding that Egypt is expected to witness a renewable energy boom over the next two years. Heiba highlighted the government's efforts to stimulate renewable energy investment, including the approval of a new law that provides incentives for green hydrogen projects and their derivatives. He noted that GAFI has made "environmental protection" a core criterion for awarding investment incentives across all sectors — the more sustainable a project, the greater the benefits it receives. "For example, manufacturers of electric vehicles receive higher incentives than producers of conventional, fossil-fuel cars," he explained. Heiba added that GAFI is actively raising awareness about environmental sustainability within Egypt's business community. In cooperation with other government entities, the Authority has organized awareness workshops on the EU's Carbon Border Adjustment Mechanism (CBAM) — which will take effect in 2026 — to help Egyptian exporters prepare for the new regulations aimed at reducing the carbon footprint of imports into the EU. The GAFI chief noted that the Authority has succeeded in attracting major European and Chinese investments in renewable energy, particularly those that help reduce the carbon footprint of Egyptian industries. Renewable energy, he said, remains a top priority in Egypt's investment promotion strategy. Through its Egypt Entrepreneurship and Innovation Center (EEIC), GAFI is also encouraging startups to develop eco-friendly technologies and green solutions, supporting Egypt's long-term sustainability goals. Heiba called on Egypt's business community and academic institutions to strengthen collaboration and take advantage of the country's recent accession to the EU's Horizon Europe research and innovation program, announced during President Abdel Fattah Al-Sisi's participation in the first Egypt-EU Summit last month. Under Horizon Europe, Egyptian institutions gain access to the same funding and research opportunities as their European counterparts, particularly in fields such as water management, sustainable agriculture, and food security — areas that directly benefit environmentally responsible sectors.
