Sonelgaz and Elsewedy Electric Lead Algerian-Egyptian Expansion into African Energy Markets
Image: Rass El Mal
Takeaway
The partnership between Sonelgaz and Elsewedy Electric signals a strategic move to capitalize on the growing demand for energy infrastructure in Africa. International investors should monitor the progress of the seven projects under review, as successful implementation could lead to increased opportunities in the energy equipment manufacturing, engineering, and renewable energy sectors. The focus on integrated infrastructure systems also presents potential for companies specializing in digital connectivity and fiber optic cable manufacturing.
Algeria is increasing its economic presence in Africa by expanding investments in the energy and infrastructure sectors through a new industrial alliance spearheaded by Sonelgaz, in partnership with the Egyptian company Elsewedy Electric. This alliance aims to execute strategic projects in promising African markets, focusing on renewable energy projects, particularly solar and wind power. The initiative is part of a broader strategy to expand into African infrastructure and energy markets, with Senegal, Ivory Coast, and Cameroon identified as early target destinations.
In April 2025, Sonelgaz and Elsewedy Electric signed a memorandum of understanding to strengthen economic cooperation between Algeria and Egypt. The agreement, signed in Algiers, aims to enhance investment opportunities in Algeria and unlock new economic horizons for both countries. The signing ceremony was held under the supervision of Mohamed Arkab, Minister of State, Minister of Energy, Mines, and Renewable Energies, alongside Badr Abdel-Atty, the Egyptian Minister of Foreign Affairs, Immigration, and Expatriates. The partnership is founded on a win-win principle and reflects the commitment to revitalize the historical ties between Algeria and Egypt.
The collaboration includes exploring the feasibility of a joint factory for the production of ultra-high voltage transformers, with the potential to establish a joint venture for constructing power plants in Africa and the Middle East, along with exchanging expertise and providing training. Seven projects are currently under review with Algerian authorities, signaling a growing pipeline of cross-border energy investments. The alliance is also exploring industrial diversification beyond power generation, including the manufacture of fiber optic cables to serve Algeria and other African markets, reflecting a broader push to build integrated infrastructure systems that combine energy, engineering, and digital connectivity across the region.
The consortium, uniting Egyptian and Algerian industrial heavyweights, is establishing a direct pipeline to funnel significant capital into major economic hubs like Douala and Yaoundé. Minister of Energy and Renewable Energies, Mourad Adjal, has emphasized that the sector's current priority is access to foreign markets, particularly in Africa and the Middle East, especially in areas of high demand such as energy equipment manufacturing, engineering, electricity production stations, and transformer centers. Adjal also noted that the business environment in Algeria, as well as in Egypt, is very favorable for investment, which strengthens opportunities for penetrating foreign markets.
Looking ahead, a joint committee comprised of representatives from both Sonelgaz and Elsewedy Electric will oversee the implementation of the memorandum, tasked with identifying new cooperation opportunities. Dr. Mourad Adjal issued instructions to accelerate the pace of work concerning the cooperation file between Sonelgaz and ElSewedy, particularly regarding entry into African markets, given the significant expertise possessed by both parties, especially in the industrial sector. This initiative marks a significant step toward deeper cooperation between Sonelgaz and Elsewedy Electric Algeria, reinforcing their commitment to mutual growth and the advancement of Algeria's energy sector.