With half of its public green investments directed toward transportation, Egypt is accelerating its shift to eco-friendly mobility to reduce emissions, cut fuel costs, and create jobs.
As the world pivots toward sustainable solutions, green transportation is becoming a vital component of economic development, especially for developing nations like Egypt.
Green transportation refers to eco-friendly transit methods that reduce greenhouse gas emissions, such as electric vehicles (EVs), cycling, and public transport powered by renewable energy.
Egypt has set ambitious goals to develop the transportation industry to support the transition to green transport.
Egypt’s green transport projects account for approximately 50% of the public green investments within FY2024/2025 investment plan, according to a report released by the Egyptian Cabinet’s Information and Decision Support Center (IDSC).
This is part of the ongoing efforts to expand the metro network and develop electric transportation systems. In this context, the Egyptian government has taken several measures to facilitate the shift toward green transport.
“The Egyptian government is strongly committed to integrating environmentally friendly transport systems. Since 2014, all national transport projects have aligned with this green vision, focusing on electric-powered transit,” said Dr. Hassan Mahdy, Professor of Transportation and Roads at Faculty of Engineering, Ain Shams University in an interview with Business Today Egypt.
Mahdy added that this includes the expansion of Greater Cairo’s metro lines, the development of the Light Electric Train (LRT), and the Monorail systems on both the East and West banks of the Nile.
In Alexandria, the traditional Abu Qir train line is being replaced with a modern metro system. Additionally, a Bus Rapid Transit (BRT) system is being implemented along the Ring Road.
Egypt’s green transport revolution
Egypt is currently implementing a range of green transportation projects aimed at enhancing infrastructure and promoting environmental sustainability. Key projects include:
• High-Speed Electric Train: Designed to connect major cities such as Ain Sokhna, Marsa Matrouh, and Alexandria, this project will help reduce travel time and ease traffic congestion.
• Monorail Project: Comprising two main lines—one connecting Nasr City to the New Administrative Capital, and another linking Mohandessin to 6th of October City—with a total length of approximately 100 kilometers.
• Cairo Metro Expansion: This includes the completion of Line 3 (Adly Mansour – Imbaba – Cairo University) at a length of 41.2 kilometers, the construction of Line 4 (6th of October – New Cairo) at 42 kilometers, and the planned Line 6 (El-Khosous – New Maadi) at 35 kilometers.
• Bus Rapid Transit (BRT): A project being developed along the Ring Road, covering 110 kilometers, aimed at enhancing mass transit services and reducing reliance on private cars.
• Alexandria Metro Development (Abu Qir – Misr Station): The conversion of the Abu Qir railway line into an electric metro line spanning 21.7 kilometers to improve transport within Alexandria.
• Raml Tram Modernization: A project to upgrade the Raml Tram line, which runs for 14 kilometers, enhancing urban mobility within Alexandria.
• High-Speed Electric Rail Network: Consisting of three major lines with a total length of up to 2,000 kilometers, this network will connect areas such as Ain Sokhna, Matrouh, Fayoum, 6th of October City, Luxor, Aswan, and Abu Simbel.
“A key part of this transition is the creation of a high-speed rail network, consisting of three lines: Green, Blue, and Red,” professor Mahdy added.
The cost of green projects In FY2022/2023 plan reached $336 billion, spanning several key sectors. The transportation sector alone accounted for $300 billion of this total, according to a statement released by the Ministry of Planning, Economic Development, and International Cooperation.
“Egypt can strengthen its green transport sector through infrastructure upgrades, private sector incentives, and international green financing,” said Dr. Eng. Ahmed Abdelsalam, Consultant in Project Management & Business Development, in an Interview with Business Today Egypt.
Abdelsalam added that expanding electric metro lines, trams, and BRT systems will modernize mobility while reducing emissions.
At the same time, offering tax benefits can attract investment in local manufacturing of electric buses and eco-friendly vehicles.
How green transportation can boost Egypt’s economy
Egypt faces mounting pressure from fuel subsidies, import costs, and urban pollution. Shifting to green mobility offers not only environmental relief but also an avenue to economic resilience and diversified growth, as highlighted by the International Energy Agency (IEA) in its global energy transition outlook (IEA, 2023)
Egypt spends billions annually on fuel subsidies. In FY 2022/2023, Egypt allocated EGP 28.1 billion (~$908 million) for fuel subsidies alone, according to the Ministry of Petroleum and Mineral Resources.
Cairo also ranks among the world’s most congested cities, with traffic jams costing the economy nearly 4% of GDP annually (World Bank, 2014).
Egypt imported over 25% of its petroleum consumption in 2023, making it vulnerable to global price fluctuations (BP Statistical Review of World Energy, 2023).
Switching to electric vehicles and modern public transport systems powered by renewable energy could slash Egypt’s fuel import bill.
Mahdy confirmed that Egypt is also actively promoting the use of electric vehicles by accelerating the rollout of electric charging stations on highways and within cities.
These efforts could save the government EGP 8–10 billion annually in fuel subsidies, with even greater returns as projects expand, Abdelsalam added.
He stressed that the broader impact includes lower energy costs, cleaner air, reduced healthcare expenses, job creation, and increased investment. Over time, the total economic benefit could exceed EGP 20–30 billion per year, helping Egypt meet its 2030 sustainable development goals.
Job Creation in Green Industries
Investing in green transportation can catalyze job growth. Manufacturing EVs, installing solar-powered charging stations, and maintaining electric transit fleets all create new employment opportunities. Training programs for engineers and technicians can also open high-skilled job markets in clean tech and smart mobility.
Public Transport Investment
Investment in clean transport like Cairo’s electric monorail or electric buses can reduce long-term fuel expenses and enhance mobility.
In2019, The European Bank for Reconstruction and Development (EBRD) announced that it is considering directing a sovereign loan worth €250 million to Egypt’s government as a fund to modernise and rehabilitate Cairo’s Metro line 2.
In 2022, The Bank extended a €250 million loan to co-finance the upgrade of the infrastructure and electrify an existing rail line, making it the first high-capacity metro line in Alexandria.
Consultant Abdelsalam confirmed that Green financing from institutions like the Green Climate Fund can support large-scale projects, while public awareness campaigns are key to encouraging the shift from private cars to public transit.
Electric Car Market Growth
Earlier in 2021, El Nasr Automotive Compay had signed an agreement with Chinese Dongfeng in January to locally assemble EVs in El Nasr’s factory through one of the Chinese group’s subsidiaries.
Recently, Sources revealed to Youm7 that the car’s local components will account for approximately 50% of the total, with the sheet metal, seats, and other components, including the glass, except for the battery, motor, control unit, and tires, being manufactured.
It Is worth noting that the company will release this car within the next three months.
Economic Challenges in Implementing Green Transportation
Despite its significant potential, Egypt faces a range of economic barriers in adopting green transportation on a national scale. These challenges span from infrastructure funding gaps to consumer affordability concerns and limited market readiness.
According to the IMF, Egypt will need $10 billion+ in infrastructure upgrades to make a meaningful shift to electric mobility. This includes charging infrastructure and electric fleets.
Consumer knowledge of green transportation technologies remains low. A 2023 survey by the American Chamber of Commerce in Egypt revealed that only 18% of Egyptians are familiar with EV benefits and maintenance.
With the Egyptian pound devaluing more than 50% between 2022 and 2024, importing EV parts or foreign technology has become significantly more expensive. Inflation also affects the affordability of green vehicles and infrastructure investments.
Green transportation offers Egypt a rare opportunity to achieve economic efficiency, energy independence, and job creation while reducing environmental harm. By investing in clean mobility solutions—supported by sound policies and strategic partnerships—Egypt can emerge as a green leader in the region.
