BAGHDAD: Power-starved Iraq on Thursday signed a deal with a Norwegian-led consortium to build two solar power plants, officials said, a day after inking a similar agreement with the UAE.
War-scarred Iraq is the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), but the country faces a severe energy crisis and chronic power cuts that feed social discontent.
Thursday’s agreement with the consortium led by Scatec is for the construction of two solar plants south of Baghdad with a total capacity of 525 megawatts (MW), the oil ministry said.
The project will cost around $500 million, with one plant to be built in Karbala and the other in Babel, it said.
“It is a step toward the development of durable energy,” Oil Minister Ihssan Ismail told a news conference.
Abdelaziz Atribi, Scatec’s vice president for the Middle East and North Africa, told AFP construction should begin “as quickly as possible” and take about a year.
The consortium also includes Egypt’s Orascom Construction and Iraq’s private Albilal Group.
Iraq on Wednesday inked an agreement with UAE-based renewable energy company Masdar to build five solar power plants with a total capacity of 1,000 MW.
They are part of deals with which Iraq aims to add 7,500 MW to its grid by 2023, Suha Daoud Najjar who heads the state’s investment authority, told AFP.
Iraq’s crude accounts for more than 90 percent of Baghdad’s revenues, but decades of conflict, poor maintenance and rampant corruption have battered its energy sector.
Iraq currently produces 16,000 MW of electricity, far short of the estimated 24,000-MW needs of its fast-growing population which the UN says is expected to double by 2050.
Iraq has grown dependent on gas and electricity imports from neighboring Iran, under exemptions to US sanctions on Tehran.
In September, Iraq signed a multi-billion-dollar contract with France’s TotalEnergies on projects including the construction of a 1,000-MW solar plant to supply the southern region of Basra.
Iraq signs 1.5 GW solar deals with UAE's Masdar, Norway-led consortium
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Iraq signs 1.5 GW solar deals with UAE's Masdar, Norway-led consortium
- Iraq signs deals for five solar parks with Masdar and two with Scatec consortium
Egypt defies African FDI trend with inflows of $11bn in 2025: UNCTAD
RIYADH: Egypt emerged as Africa’s top destination for foreign direct investment in 2025, attracting an estimated $11 billion in inflows in a year marked by declining investment across the continent.
According to UNCTAD’s latest Global Investment Trends Monitor, the North African country ranked ahead of other major African economies despite a sharp regional slowdown.
The performance underscores Egypt’s relative resilience at a time when foreign investment into Africa has normalized following an unusually strong 2024, which UNCTAD said was inflated by a single large project. As a result, the 2025 data reflects a return to more typical investment levels across the continent.
“Among African economies, inflows to Angola reached an estimated $3 billion, marking a return to positive values after nine consecutive years of net divestments,” the report stated.
It added: “Egypt, with inflows of $11 billion, remained the largest FDI host country in Africa.”
While Egypt solidified its position as Africa’s leading FDI host, other notable movements on the continent included Mozambique, where inflows surged 80 percent to $6 billion, driven by renewed activity in major liquified natural gas projects.
Angola also saw a positive shift, recording an estimated $3 billion in FDI after nine consecutive years of net divestments.
UNCTAD noted that Egypt’s strength extended beyond headline inflows, with the country also contributing to an increase in greenfield investment activity across Africa. While the number of greenfield projects fell globally and across most lower-income economies, Africa recorded a 5 percent increase in project numbers in 2025, supported in part by growth in Egypt and Côte d’Ivoire.
Globally, FDI flows rose by 14 percent in 2025 to approximately $1.6 trillion, though growth was heavily concentrated in developed economies, which saw a 43 percent increase.
In contrast, flows to developing economies declined by 2 percent, with the least developed countries particularly affected; three-quarters experienced stagnant or falling investment.
The report highlighted that new project announcements remained weak globally amid elevated policy uncertainty, with international project finance declining for the fourth consecutive year.
Looking ahead, UNCTAD warned that geopolitical tensions, regional conflicts, and economic fragmentation could continue to suppress real investment activity in 2026, even as financing conditions are expected to ease.
For Africa, sustaining FDI inflows will require navigating persistent challenges such as financing constraints, risk perceptions, and structural vulnerabilities.
