Egyptian utility giant, Elsewedy Group, has signed a memorandum of understanding (MoU) with Algeria’s Investment Promotion Agency (AIPA) to invest up to $2.5 billion in the country, more than four times its current investment.
The agreement was signed on the sidelines of the fourth Intra-African Trade Fair (IATF) held in Algiers and covers the creation of an industrial base for renewable energy.
It will also include the exchange of technology and the development of electrical infrastructure.
“The announced investment plans are valued at $2.5 billion, five times the company’s current investments in Algeria. They will create a significant number of jobs and help localise new industries,” Mostafa Awad El Halawani, CEO of Elsewedy Electric Algeria.
Elsewedy has a subsidiary in Algeria that produces electrical transformers and cables for the local market and exports to neighbouring countries.
Elsewedy’s global operational footprint
Elsewedy is one of the leading manufacturers of electrical equipment in the Middle East and African region, with up to 34 production sites across 19 countries.
These include Saudi Arabia, Tanzania, Algeria, Pakistan, Qatar, and Indonesia. In these countries, its main businesses focus mainly on:
- Wires, cables and accessories
- Electrical products
- Engineering and construction
- Digital solutions
- Infrastructure developments
Algeria, which seeks to diversify its energy mix from oil and gas, aims to produce 15,000 MW of electricity from renewable sources by 2035.
As of 2024, the company recorded a revenue of $5.23 billion with an active labour force of over 19,000 people.
In the first half of 2025, the company’s consolidated net profits increased to $181.04 million, up from the $175.62 million seen in the first half of 2024.
Algeria’s electricity push
In April, the country launched the Taqathy+ initiative with the European Union and Germany and secured €28 million to advance renewable energy and green hydrogen projects.
“The signing of the implementation contract for Taqathy+ constitutes a decisive milestone towards fruitful cooperation and a rich exchange of experiences centred on sustainable energy solutions,” said Noureddine Yassaa, Secretary of State for Renewable Energy.
Algeria also began exploring renewable partnerships with Turkish companies which have since developed interests in the country’s solar potential.
The country witnesses up to 3,500 hours of sunshine annually in its desert areas, capable of generating between 1,850 and 2,100 kilowatt-hours of power.
Four years back, Turkey established renewable laboratories in Algeria, with Yacine Merabi, the country’s Minister of Vocational Training saying“Algerian specialists should be trained in renewable energy in Turkey”.
Earlier this year, Algeria’s national oil company Sonatrach signed a preliminary agreement with the country’s Renewable Energy Development Centre (CDER) to explore partnerships around renewable energy.
The additional $2.5 billion investment plan by the Egypt-listed Elsewedy is expected to boost domestic supplies of electrical products that will help support Algeria’s electricity ambitions.
