“Hatem Hesham Tawfik: We Are Betting on the Future of Solar Energy… And Suspending the Circular Letter Puts 168 Companies at Risk”
Cairo – Maii Abdo:
In his calm, understated office at Cairo Solar—one of the most prominent players in Egypt’s solar energy market—we sat down with Managing Director Hatem Hesham Tawfik, a man who chose the road less traveled.
Despite holding Canadian residency and promising prospects abroad, he returned to Egypt determined to build something meaningful at home.His journey blends international education, entrepreneurial ambition, and a strong belief in the transformative potential of renewable energy. In this interview, Hatem shares—for the first time—the founding story of Cairo Solar, the company’s financing strategies, insights into major projects, and the challenges facing the sector today, particularly the government decision to halt the circular letter regulating net-metering as of 31 December 2025.
From Banking to Business Leadership
Hatem begins:“I graduated from Cairo American college and then earned a degree in Economics from McMaster University in Canada. When I returned to Egypt, I joined CIB. My goal was to work in private equity, but hiring was frozen after the financial crisis, while banks were still taking people.
I was hired by Mr. Amr El-Ganainy, and I’ll always be grateful for that opportunity.”After two to three years in banking, he realized it wasn’t his calling:“I inherited the entrepreneurial mindset from my family. I wanted to create something of real value. I even considered charity work, but decided that I must first succeed in a tangible project—then give back.
Returning Home—and Declining Canadian Citizenship
In 2013, Hatem went back to Canada to complete his MBA. He became eligible for Canadian citizenship:“I was offered permanent residency, but I felt a strong urge to live in my own country, in an environment that shaped me. So I chose to return to Egypt and build my future here.”—The First Startup: A Sports App Before Cairo Solar
During his MBA, Hatem launched his first entrepreneurial project:“I developed an app—through an Egyptian company—that connects people who want to exercise together. It was accepted on Canada’s Shark Tank and received excellent feedback. I began signing partnership agreements with major universities.”
Despite its promise, he stepped away:“My father visited me that summer and discussed solar energy. I realized it was a sector that could benefit the country and generate solid returns. I said to myself: Egypt needs energy and water more than anything.”
Cairo Solar: The Start of the Vision
After discussions with Dr. Mohamed Shaker, Minister of Electricity, regarding the country’s upcoming renewable-energy legislation, Cairo Solar was established in 2014.Hatem returned from Canada within seven months, took over as Managing Director, and spent two to three years training before his father was appointed Minister of Public Enterprise in 2018.—Evolving from Homes to Industrial Solar PlantsHatem recalls:“We started with branding that made us look like a residential-focused company.
People would ask: why install a solar system if electricity prices are stable? We treated electricity like a stock—if it goes up, you profit; if not, you wait.”As the market evolved, the company shifted toward large-scale industrial and commercial clients:Factories owned by eco-conscious entrepreneurs
Beneficiaries of the 5% financing initiative
Users of the 8% industrial and 12% financing programs
Clients who secured a 10% non-refundable grant from the EBRD
“We learned to operate not just as an EPC contractor but as a construction-and-financing company. That’s been our key to success—making financing accessible for clients.”
Competition and Market Reality
Cairo Solar faced strong competition from companies selling power directly to customers:“Competitors sell energy at 10% below government tariffs. Clients ask: why own a solar plant? The answer: ownership saves you 30%—not 10%.”The company’s portfolio includes:Fresh Electric – annual savings of EGP 20 millionTradco El-Sayad – pioneers in electric motorcycles
Beco Agriculture – solar plants powering high-quality fruit farms
Factories in 10th of Ramadan and 6th of OctoberHelwani Ikhwan
El-Marakby Steel
Crystal Asfour
—Market Position and Achievements
According to Hatem:Cairo Solar holds the highest qualification level in Egypt: the Platinum Certificate
Over 10 years: 20 MW installed across 80 projects
30% market share in industrial rooftop systems
First company to receive a cheque for electricity generated from solar power—Challenges Ahead—Especially the 31 December Decision
The company now faces several critical challenges:
1. Suspension of the net-metering circular letter“This decision affects the core mechanism used by 168 companies. Its impact on the sector will be severe.”
2. Unequal tax treatment versus green hydrogen“Green hydrogen projects pay 0–5% tax, while we pay 14%.”
3. Ministry of Electricity comments—and responses
Slow execution:“Due to high interest rates and financial pressures on factories. But now, our numbers are improving significantly.”
Pressure on USD demand:“There is no real dollar gap. A 10-MW system requires only half of its cost in USD.”Concerns about efficiency in some government buildings:“Private-sector systems are well maintained and operate at high efficiency. Official utility reports confirm this.”Solar energy as a requirement for exporting industries:“Meeting clean-energy standards is mandatory for export—making solar energy essential.”
A Vision for the Next Phase“We hope authorities reconsider and reinstate the circular letter so the market can continue operating. We also hope for tax incentives and concessional financing to help us expand our project pipeline.”
—Advice for Young Entrepreneurs
With unwavering sincerity, Hatem says:“Entrepreneurship requires passion and patience. Even if your progress is tiny every day, you are still moving forward. Know your strengths, work hard, be patient, and don’t try to carry everything at once.
Give God His due, honor your family—and God will give you more.”—Cairo Solar emerges from this conversation not merely as a renewable-energy company but as a model of purposeful entrepreneurship rooted in a clear economic and social vision. Despite regulatory uncertainty—especially the suspension of the circular letter—the company’s commitment to innovation, financing solutions, and strong partnerships suggests that the future of solar energy in Egypt remains bright. Solar energy is no longer optional; it is an economic necessity for industry, development, and export.
In the end, Hatem Hesham Tawfik stands out as more than a successful entrepreneur. He is a voice determined to contribute to the solution, not add to the problem. He walked away from guaranteed opportunities abroad to build success at home—believing that real achievement belongs on the land you know and with the people whose values you share.He is not just leading a company; he is helping drive a national mission—placing Egypt confidently on the regional solar-energy map. His path reflects a balance of passion, expertise, responsibility, and patriotism.Hatem exemplifies an entrepreneur who sees what others overlook: that success is not measured solely in profit, but in what you contribute to people and to your country. And that is precisely the legacy he is building.
