Egypt to set up the world’s largest green hydrogen plant?

Egypt's Business Landscape Sees Major Strategic Shifts and Investment Inflows

This week's business news highlights significant developments across various sectors in Egypt, signaling strategic shifts and substantial investment inflows. An in-depth interview with Amr El Sawaf, General Manager of Elsewedy Cables, featured in "Inside Industry," provided insights into the company's market leadership and its strategies for navigating the competitive global landscape.

A major strategic move is underway as the Sovereign Fund of Egypt (SFE) prepares to assume oversight of all state-owned companies. A newly formed committee is conducting a comprehensive review of these enterprises, categorizing them based on the complexity of their transfer. This initiative, scheduled for completion by the end of the second quarter, aligns with the government's plan to maximize returns through private sector partnerships and potential public listings. Investment Minister Hassan El Khatib recently unveiled this strategy, which will see these companies integrated into the SFE's pre-IPO fund, facilitating their preparation for listing on the Egyptian Exchange (EGX).

In the realm of renewable energy, Egypt is proposing a groundbreaking project: the construction of what is envisioned to be the world's largest green hydrogen plant. A USD 17 billion investment is being pitched for the facility in South Sinai, developed in partnership with the Military Production Ministry. This ambitious project aims to produce up to 400,000 tons of green hydrogen annually, with phased completion by 2035.

The EGX is set to welcome a new listing as Geos for Trading and Contracting plans to offer 33.33% of its shares next quarter. The offering will consist of a private placement and a public offering. The company has recently increased its capital and appointed Prime Holding and FACT as financial advisors, with a listing application expected to be submitted this month following the finalization of its 2024 financial results.

Progress is also being made on the Egypt-Greece electricity interconnector, known as Gregy. Egypt and Greece are set to commence implementation of the 3 GW project before the end of 2025, supported by EUR 1 billion in grants and concessional financing from European institutions. Greece is slated to receive 1 GW of the project's output, with the remainder exported to other EU nations, primarily Germany and Italy. This project is part of a broader EU initiative to support Egypt's renewable energy exports into Europe.

Finally, the Egyptian apparel sector is poised for growth with the potential entry of eight Turkish apparel and textile manufacturers. These investors are currently assessing industrial zones and exploring temporary production partnerships with local manufacturers. This development is projected to boost Egypt's garment exports by 25% to USD 4.1 billion by 2026.