A recent report by the Information and Decision Support Center at the Egyptian Council of Ministers highlights the growing importance of solar energy in emerging and developing economies. The sector is witnessing rapid transformation, with solar photovoltaic energy emerging as a key source of new electricity generation. This growth is driven by increasing electricity demand due to economic growth, urbanization, and industrialization, alongside decreasing costs and improving competitiveness of solar technologies.
Asia is leading the global expansion in solar energy, driven by significant growth in China and India. According to the International Energy Agency, most of the global renewable energy expansion from 2025 to 2030 is expected to be driven by solar photovoltaic energy, with China continuing to lead global additions. India is also experiencing rapid growth in solar energy, driven by increasing electricity demand, industrialization, and urbanization, and is becoming the second-largest Asian market in terms of installed solar capacity.
Africa is also witnessing a significant transformation in its solar energy market, leveraging its abundant solar resources. The continent's installed solar capacity has increased from approximately 3 gigawatts in 2016 to over 22.2 gigawatts in 2025. In 2025, Africa recorded its highest annual additions of solar energy, with a 54% increase compared to 2024. Egypt, along with South Africa, Nigeria, and Algeria, is among the top markets driving this growth.
Egypt is one of the top three African markets for new solar energy additions in 2025, with approximately 500 megawatts of new capacity added. The country is also witnessing a shift towards local manufacturing of solar energy components. Several projects are underway to establish new manufacturing facilities for solar cells and panels, which are expected to create hundreds of jobs and contribute to the growth of the local industry.
The growth of solar energy in Africa is driven by several factors, including decreasing technology costs, increasing demand for electricity, and the need to create jobs and stimulate local economies. The International Renewable Energy Agency estimates that the solar sector in South Africa alone provided around 33,800 jobs in 2024. In Egypt, the number of jobs in the solar sector has increased to around 5,900.
The Egyptian government is supporting the growth of the solar industry through various initiatives and projects. For example, the "Mission 300" initiative aims to provide electricity to 300 million people in Africa by 2030, with over $50 billion in development financing committed so far. Egypt is also home to several new projects aimed at establishing local manufacturing capacity for solar energy components.
The growth of solar energy in Egypt and Africa is expected to continue, driven by favorable policies, decreasing costs, and increasing demand for electricity. As the sector continues to evolve, it is likely to play an increasingly important role in the region's energy mix, contributing to economic growth, job creation, and sustainable development.
Key points
- Egypt among top three African markets for new solar energy additions in 2025.
- Africa's installed solar capacity increases to over 22.2 gigawatts in 2025.
- Solar energy sector expected to play increasingly important role in Egypt's and Africa's energy mix.
