Facing a severe energy crisis and economic instability, Egypt is intensifying its partnership with Chinese tech giant Huawei to revamp its renewable energy and digital infrastructure. The move comes as Cairo grapples with dwindling domestic gas production and the recent disruption of critical energy imports from Israel, pushing the nation to seek reliable alternatives to bolster its economy.
This strategic pivot eastward reflects a broader shift in global geopolitics. As reported in the newsletter' As Sisi avoids Washington visit, Egypt courts China's tech giant Huawei' by analysts Joyce Karam and Rosaleen Carroll, Egyptian President Abdel Fattah al-Sisi has made state visits to both Russia and China in recent years while forgoing a trip to Washington, signaling a deliberate diversification of foreign partnerships.
The collaboration with Huawei is multifaceted. Following a visit by Egypt's Minister of Electricity to Shenzhen, plans were discussed for upgrading the national power grid and expanding battery storage to help meet the country's goal of generating 42% of its electricity from renewable sources by 2030. This builds on recent agreements for Huawei to roll out 5G services with Telecom Egypt and pilot solar power projects at oil wells.
The urgency was highlighted after the recent halt of Israeli gas from the Leviathan field caused significant domestic shortages. The crisis, coupled with a 50% drop in Suez Canal revenues, exposed Egypt's economic fragility. While Cairo is not abandoning its U.S. partnership, its deepening ties with Beijing—already its largest trading partner—represent a pragmatic effort to secure its energy and technological future.
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