GAFI CEO Headlines:
- “Massive solar panel production in Egypt with 90% local components is expected by Q1 2026”.
- “The greener the project is, the greater the investment incentives are granted”.
- “Egypt is poised for a major leap in the renewable energy sector over the next two years”.
- “Business community is urged to partner with Egyptian universities to benefit from the Horizon Europe program aimed at supporting research and innovation”.
Mr. Hossam Heiba, Chief Executive Officer of the General Authority for Investment and Free Zones (GAFI CEO), stated that the legislative and procedural reforms introduced in recent years have significantly accelerated Egypt’s transition towards green energy. He announced that a number of solar panel manufacturing plants will begin actual production in the first quarter of 2026, with a local content ratio ranging between 80 and 90 percent, forecasting a remarkable leap in Egypt’s renewable energy sector over the next two years.
Heiba made these remarks during his participation in the second edition of the Egyptian Directors’ Climate Forum, organized by Chapter Zero Egypt Association, in the presence of H.E. Eng. Mohamed Shimi, Minister of Public Business Sector; Dr. Mahmoud Mohieldin, United Nations Special Envoy on Financing the 2030 Sustainable Development; Mr. Mark Davis, Managing Director for the Southern and Eastern Mediterranean at the European Bank for Reconstruction and Development (EBRD); Eng. Ahmed El-Sewedy, ElSewedy Electric CEO and Chairman of Chapter Zero Egypt; Mr. Ayman Salah, Lobby Egypt Chairman; and Eng. Tarek El-Gammal, Chairman of Redcon Group.
During his address, Mr. Heiba highlighted Egypt’s efforts to promote renewable energy, noting that an independent law has been enacted to grant incentives to all projects engaged in green hydrogen its derivatives. He added that GAFI has recently introduced an “environmental protection” factor into its investment-incentive criteria across all sectors—meaning that the more environmentally friendly a project is, the greater the incentives it receives. As an example, electric-vehicle plants qualify for higher incentives than traditional fuel-based car factories.
Heiba also pointed to GAFI’s efforts to raise awareness within the business community about the importance of environmental sustainability, in cooperation with relevant government bodies. Over the past eight months, GAFI has organized a series of workshops on the Carbon Border Adjustment Mechanism (CBAM) adopted by the European Union, which will enter into force in 2026, aiming to reduce the carbon footprint of EU imports.
He further noted that GAFI has succeeded in attracting major European and Chinese investments to Egypt’s renewable energy sector to help reduce the overall carbon footprint of Egyptian industries. He emphasized that renewable energy continues to be one of the Government’s top priorities in investment promotion, adding that GAFI’s Permanent Unit for Supporting Entrepreneurship and Start-ups continues to encourage innovators to develop eco-friendly technologies.
Concluding his remarks, GAFI CEO urged the business community to strengthen partnerships with Egyptian universities in light of Egypt’s official accession to the European Union’s Horizon Europe program, announced during H.E. President Abdel Fattah El-Sisi’s participation in the first Egypt–EU Summit last month. Through this program, Egyptian institutions will enjoy equal access to European knowledge resources in key fields such as water management, sustainable agriculture, and food security, generating tangible benefits for green and sustainable sectors in Egypt.
