Cairo:Egypt is set to rank among Africa's three largest markets for new solar power capacity additions in 2025, with an expected increase of around 500 megawatts (MW). This growth is highlighted in a report by the Cabinet's Information and Decision Support Center (IDSC), titled "Solar Expansion Pathways in Emerging and Developing Economies." The report emphasizes the rapid expansion of solar energy projects across Africa and Egypt's focused efforts on localizing parts of the renewable energy industry's value chain.
According to State Information Service Egypt, the report notes that solar energy is undergoing significant transformation, becoming a key driver of investment, manufacturing, energy security, and job creation. This shift is supported by rising electricity demand, declining solar technology costs, and improved competitiveness compared with conventional power generation sources.
In 2024, Egypt's solar energy sector is estimated to have provided approximately 5,900 jobs, with increasing solar installations and efforts to expand domestic manufacturing of solar components. Notably, Chinese company Sunrev Solar is establishing factories in Egypt for the production of solar cells and modules, each with a capacity of up to 2 gigawatts (GW). This project aims to create more than 1,800 direct jobs by increasing reliance on locally sourced production inputs.
Planned projects in Egypt include a 2-GW industrial complex for solar cell production and another 2-GW facility for solar panel production, alongside energy storage capacity of 1 gigawatt-hour (GWh). Investments in these projects are from Egyptian, Chinese, Bahraini, and Emirati companies, expected to generate around 841 direct jobs.
At the continental level, Africa is experiencing a new phase of solar energy expansion, benefiting from around 60% of the world's best solar resources, as estimated by the International Energy Agency (IEA). Africa's installed solar capacity increased from about 3 GW in 2016 to 18.4 GW in 2024 and is expected to reach 22.2 GW in 2025, marking a more than sevenfold increase since 2016.
South Africa leads African markets with additions of around 1.6 GW, followed by Nigeria with approximately 803 MW, and Egypt with around 500 MW. The report anticipates this momentum will continue in 2026, with Egypt projected to add around 2 GW. The growth is partly attributed to the difficulty of tracking distributed solar systems, which accounted for around 44% of new installations in 2025.
Africa imported approximately 18.2 GW of solar panels in 2025. The report identifies three main drivers for solar expansion: declining technology costs, the need to expand electricity access, and opportunities for manufacturing and employment through localization.
The Mission 300 initiative, led by the World Bank Group and the African Development Bank Group, aims to provide electricity access to around 300 million people in Africa by 2030, with development financing pledges exceeding $50 billion as of July 2026. Globally, Asia continues to lead solar expansion, with China and India at the forefront, while solar photovoltaics are expected to account for a significant share of global renewable energy growth from 2025 to 2030.