The African Development Bank (AfDB) has approved $184.1 million in financing for Egypt’s landmark Obelisk solar project, which will become the continent’s largest solar installation upon completion in 2026. The 1-gigawatt photovoltaic facility, coupled with 200MWh of battery storage, represents a transformative leap in Africa’s renewable energy landscape.
Located in Qena Governorate, the $590 million project forms the centerpiece of Egypt’s Nexus of Water, Food and Energy (NWFE) initiative launched during COP27. Under a 25-year power purchase agreement, the Egyptian Electricity Transmission Company will receive 2,772 gigawatt-hours of clean electricity annually, enough to displace 1 million tons of CO2 emissions each year while powering hundreds of thousands of homes.
The AfDB’s financing package showcases an innovative blended finance approach, including $125.5 million from AfDB’s ordinary capital, $20 million from the Sustainable Energy Fund for Africa, $18.6 million from the Canada-AfDB Climate Fund, and $20 million from the Clean Technology Fund. This structure has attracted over $4 billion in private investment for Egypt’s broader plan to deploy 10GW of renewables by 2030.
Beyond its climate benefits, Obelisk promises significant socioeconomic returns. It will create 4,000 construction jobs with local hiring commitments, more than 50 permanent operational roles emphasizing women and youth employment, and strengthen energy security through diversified generation.
AfDB energy director Wale Shonibare highlighted the project’s replicability across Africa, where solar potential remains vastly underutilized despite abundant irradiation. The Golden License designation underscores its strategic importance as Egypt positions itself as a renewable energy hub bridging Africa, Europe, and the Middle East.
With construction slated for completion by Q3 2026, Obelisk demonstrates how multilateral partnerships can accelerate Africa’s energy transition while delivering tangible economic benefits, a model that could inspire similar mega-projects across the sun-rich continent.
