The Egyptian government is making significant strides in its renewable energy sector, with plans to export electricity to Italy projected to involve investments between $15 billion and $20 billion. Sabah Mashaly, the Deputy Minister of Electricity and Renewable Energy, shared these insights while speaking to CNN on April 30, 2025, at a conference organized by the American Chamber of Commerce in Cairo.
Mashaly detailed that the electricity export will be facilitated through a submarine cable capable of transmitting up to 3 gigawatts of power. She emphasized that the government has recently completed a series of preliminary studies that indicate the project’s potential, and is now moving forward with detailed studies to finalize the expected investment volume.
"The size of the project necessitates a significant investment, which is why we anticipate costs to be in the range of $15 billion to $20 billion," Mashaly stated. This ambitious venture aligns with Egypt's broader strategy to enhance its renewable energy capabilities and increase its share of renewable sources in annual energy production.
In recent developments, the Egyptian Council of Ministers approved a cooperation agreement between the Egyptian Electricity Transmission Company and the Emirati company K&K. This partnership aims to complete the final studies necessary for the renewable energy export project to Italy.
Mashaly also noted that Egypt has been actively reducing its reliance on oil and gas for electricity production since October 2024. She highlighted improvements in the efficiency of electricity generation, reporting that the country has saved approximately 7.7 billion Egyptian pounds in subsidized oil costs since that time. "If we factor in global prices, the savings could reach 23 billion pounds," she added.
Meanwhile, at the "Egyptian Expatriate Day" event, Engineer Hassan Al-Khatib, the Minister of Investment and Foreign Trade, underscored the government's commitment to supporting the export sector as a vital component of economic growth. The event, organized by the Egyptian Expatriates Association (Eksbolink), gathered numerous businessmen, investors, and representatives from the exporting sector.
During his address, Al-Khatib emphasized the importance of the "Investment from Export" initiative, which aims to highlight the symbiotic relationship between investment and export activities. He remarked, "This initiative is crucial for sustainable economic development and growth."
The theme for this year's event, "Made in Egypt – from local to global," reflects the government's ambition to bolster the presence of Egyptian products in international markets and achieve a significant leap in export performance.
Al-Khatib reiterated that the government prioritizes exportation as a fundamental pillar for increasing foreign currency reserves and reducing the trade deficit. He revealed that the government aims to boost export values to $145 billion by 2030, necessitating annual growth rates exceeding 20%.
He also pointed out that substantial investments have been made in infrastructure over the past decade, including the development of cities, ports, and logistics areas, all linked through modern transportation networks. This infrastructure serves as a robust foundation for enhancing export capabilities.
Additionally, Al-Khatib discussed the recent changes in monetary policy, which have introduced a flexible exchange rate aimed at improving the competitiveness of Egyptian products. He mentioned ongoing efforts to alleviate burdens on investors and enhance the business climate.
To expedite customs clearance, the ministry is targeting a reduction in processing times to just two days by the end of 2025. This will be achieved by extending work hours and implementing 29 new measures designed to facilitate trade.
In terms of export support, Al-Khatib stated that the current program ensures the disbursement of dues within 90 days. He also indicated that a new three-year program for export dues reimbursement is on the horizon, developed in coordination with relevant authorities and export councils to meet their needs and expectations.
As part of a strategy to expand into African markets, Al-Khatib unveiled plans to enhance Egypt's presence on the continent by establishing 5 to 6 logistics centers in key African countries. These centers are expected to improve supply chain efficiency.
Concluding his remarks, Al-Khatib affirmed that Egypt possesses the necessary resources and capabilities for industrial leadership, calling for strengthened partnerships between the public and private sectors to create an economic model focused on manufacturing for export.
On a related note, Mohamed Qassem, the Chairman of the Egyptian Expatriates Association, announced several local and international partnership agreements aimed at boosting Egypt's presence in global markets. He highlighted upcoming expansions into the American and Swiss markets through the opening of representation and promotion offices for Egyptian products.
Qassem also noted that the association is working to enhance Egyptian export capabilities in Africa, collaborating with the African Export-Import Bank to strategically increase the penetration of national products in regional markets.
He emphasized that Egypt's geographical position and diverse trade agreements create a golden opportunity for Egyptian exporters to grow their businesses and expand their share in international markets.
