Elsewedy Commits $2.5B To Algeria: A New Era for African Manufacturing

Egypt’s Elsewedy Electric has signed a $2.5 billion framework to build factories and expand renewable energy and electrical equipment capacity in Algeria, committing large scale capital to onshore manufacturing of cables, renewables kit and related components. The deal is being marketed as a manufacturing reset. Elsewedy says the investment will be phased across factories, solar and distribution assets.  

Insight: Elsewedy’s $2.5 billion investment in Algeria underscores a significant trend. We’re seeing African capital increasingly being reinvested within the continent. Last month, the Nigerian Dangote Group signed a $2.5 Billion dollar deal with the Ethiopian government to construct a large scale fertiliser manufacturing plant in Gode, southeastern Ethiopia. This trend of intra-African investment is especially significant in the manufacturing sector, as such investments are pivotal in driving economic growth through job creation, strengthening regional supply chains, and fostering inter-country collaboration. They not only enhance industrial capacity but also promote economic interdependence, which is crucial for sustainable development across Africa. We hope to see more of such deals being made in the future.