EliTe Solar, a solar PV manufacturing company based in Singapore, achieved a great milestone in its expansion worldwide when it broke ground for a new manufacturing facility at Egypt’s TEDA Suez Economic and Trade Cooperation Zone. The planned capacity for the facility is 5GW. It will spread over an area of 78,000 square meters. The operations at the facility will begin by September 2025.

Key milestone in Egypt’s solar sector

The gathering had key persons such as Mr. Waleid Gamal Eldien, Chairman of the Suez Canal Economic Zone and Mr. Ouyang Xiaoming, First Secretary of the Chinese Embassy in Egypt. Attending it also was Mr. Li Daixin, Chairman of China-Africa TEDA Investment Co., Ltd and Mr. Liu Jingqi, Chairman of EliTe Solar, whose persons took time and spoke of what the said project holds in store for Egypt’s future in renewables.

Mr. Waleid Gamal Eldien, Chairman of the Egypt Special Economic Zone Authority said, “The launch of this project represents a major milestone in the development of Egypt’s solar industry.”

He added, “By introducing advanced solar manufacturing technologies and optimizing local supply chains, this initiative will raise Egypt’s overall manufacturing standards. EliTe Solar’s advanced solar technology and managerial expertise will further enhance our global standing in solar power industry.”

Also read: Egypt to Boost Renewable Energy Capacity by 10 GW by 2028

Strengthening Egypt’s Position in Global Solar Manufacturing

The new solar hub will introduce advanced technology to Egypt, create a thrust in the local solar industry, and enhance its export potential. This will assume a key position in helping Egypt pursue its 2030 renewable energy goal of transforming 42 percent of its energy mix to clean sources.

The new solar hub will play a central role in pursuing Egypt’s target of transforming 42% of its energy mix into clean sources in 2030.The plant will also generate 500 million kWh annually that will substitute for about 307 million tons of standard coal and save 84 million trees worth of carbon.
Addressing Egypt’s Energy Needs and Sustainability Goals

Amid recent power shortages in Egypt, this project offers a sustainable energy solution, leveraging renewable resources for energy diversification. It expects help meet the growing demand for electricity while ensuring the country’s energy independence.

IFC has invested heavily in the country’s first sustainability bond issued by Société Générale Madagasikara, SGM. The proceeds from the bond will go towards funding renewable energy projects and support small businesses in the growth of the economy.

Key Details of the Investment

The IFC committed around $11.5 million to underpin the three-year sustainability bond in local currency, Malagasy Ariary, of SGM. The latter generated $36.4 million in proceeds with co-investments from FMO and Proparco, of the Agence Française de Développement.

Proceeds from bond issues will target projects and businesses that, at inception, have significant environmental or social impact-often, small and medium-sized enterprises. With the estimated gap in funding over $2.6 billion-more than a quarter of Madagascar’s GDP-this is among the largest investments that are being made in order to cover the gap.

Empowering Small Businesses and Renewable Projects

IFC’s investments support better access to finance by MSMEs, of particular importance for Madagascar. Business and projects that further sustainable development goals on social and environmental fronts will now face no capital access difficulties since they will be fully supported with the funding available through the bond.

Mehita Fanny, IFC Country Manager for Madagascar said, “IFC’s support of SGM’s groundbreaking sustainability bond signals our commitment to helping achieve inclusive and resilient economic growth in Madagascar.”

She added, “As we work together to help provide vital financial support to small businesses, with a specific focus on sustainable ventures, we unlock new ways to create jobs and drive down some of the vulnerabilities introduced by climate change.”

Also read: IFC Issues $184 Million Green Bond to Support Biodiversity Projects in Emerging Markets

Boosting Local Capital Markets

The transaction represents a significant milestone in developing the local capital markets in Madagascar. As the country’s first sustainability bond, this is the first step into ensuring more sustainable finance transactions happen across Africa.

The bond attracts local and international investors, boosting funding for sustainability projects and small businesses in Madagascar.

IFC’s Continued Commitment to Madagascar

The IFC’s engagement in the sustainability bond forms part of its overall drive to support MSMEs in Madagascar. Since 2018, IFC has supported smaller businesses by improving credit access through funding and risk-sharing initiatives with local institutions. So far, IFC has worked with six local institutions, directing about $100 million in financing to small businesses.

In addition to direct finance, IFC has used advisory services to strengthen the credit ecosystem of the country. This includes developing financial services through digital means, improved risk management, and better access to sustainable finance from the private sector.

The IDA PSW Blended Finance Facility supports this sustainability bond by offering a pooled first-loss guarantee to the investment. The IDA PSW Local Currency Facility ensures funds are available in local currency, reducing exchange rate risks for the project.