Egypt’s “economic complexity” and potential makes it Africa’s 3rd most attractive investment destination

Cairo – August 8, 2024: Egypt’s “economic complexity” and potential makes it one of Africa’s most attractive investment destinations, according to a new report by African corporate and investment bank Rand Merchant Bank (RMB).

With an overall score of 0.49, Egypt was ranked the 3rd most attractive investment destination in Africa, following top destination Seychelles with 0.72 and Mauritius with 0.69 at 2nd place.

Representing Africa’s largest economy by GDP in 2023, RMB highlighted Egypt’s substantial market opportunities for investors in sectors such as technology, manufacturing, and service. It also noted that the country’s “strategic location and economic complexity further enhance its attractiveness.”

Egypt’s economic performance & potential rating drove its ranking, leading the top 3 countries with a score of 1, (RMB’s report uses a rating system with 1 as the best score). The 2nd ranked African country, Mauritius, had the worst rating in the top 3 with 23, while Seychelles scored 11. Egypt was the only country to receive a score of 1 in the report.

On market accessibility & innovation, Egypt scored 5, lower than Mauritius’ 3 but higher that Seychelles’ 14.

Egypt’s lowest score was on economic stability & investment climate with 23, while top destination Seychelles received a score of 1 and Mauritius a score of 2.

“With a GDP of $394 billion in 2023, Egypt was the largest economy on the continent. Egypt’s GDP per capita (of more than $15,000) places it sixth overall. Further, with more than 110 million people this is a large market that is attractively positioned relative to European markets,” the report explained.

Egypt was considered as one of the continent’s biggest “highflyers” – representing the large, well-established economies that offer stability and a range of investment opportunities.

The United Nations Conference on Trade and Development (UNCTAD) named Egypt as the leading investment destination in Africa for 2023 last month – continuing its lead as the top destination in 2022.

Egypt’s government continues to intensify efforts to enhance its business climate to further attract foreign direct investments and stimulate private sector investments, as outlined in its State Ownership Policy Document.

Under the document, Egypt plans to exit from seven sectors through its IPO program, including pharmaceuticals, chemicals, and construction, while also reducing investments in seven other sectors such as power plants.

Earlier this week, Minister of Finance Ahmed Kouchouk shared that it was looking to revive its initial public offering (IPO) program sometime this year