The IFC has approved an investment of $635 million that will aid in funding the construction, operation, and maintenance on up to 11 solar power plants in Egypt. The combined capacity of the plants amounts to 500 MW. This will be one of the largest private foreign direct investments in the country’s power sector in recent years.
Egypt’s solar FIT program, which includes projects financed by other institutions like the European Bank for Reconstruction and Development and Proparco, is expected to be one of the largest foreign direct investments (FDIs) in years, catalyzing a total inflow of $2 billion.
Part of Egypt's landmark solar Feed-In Tariff (FIT) program, the $730 million project in Benban, near Aswan, aims to mobilize private investment to build the world's largest solar photovoltaic generation park, harnessing the country’s vast solar resources. As well as helping to spur economic growth, the project will help drive the local economy, including the creation of temporary and long-term jobs and help reduce greenhouse gas emissions.
The program will introduce multiple regional and international investors to the country, as well as a number of new lenders, highlighting Egypt's re-emergence as an attractive investment destination. It will also create a wider base of private capital for future infrastructure investments into Egypt.