Structural reforms, renewable energy and a booming digital finance sector are creating new opportunities in Africa's second-largest economy Egypt is seeking to reposition itself as a manufacturing, energy and technology hub as policymakers push a new phase of economic reforms aimed at attracting investment and boosting exports.

At the EBRD Annual Meeting in Riga, ministers, investors and business leaders argued that Egypt's next growth chapter will be built on industrial development, renewable energy and financial innovation rather than traditional sources of economic expansion.

"Egypt offers scale, diversification, and a reform-driven environment that is increasingly aligned with the needs of global capital," said the spokesman for Foreign Minister Badr Abdelatty.

The government is targeting a significant increase in private-sector participation, aiming for the private sector to account for 65% of total investment while attracting $60bn of annual foreign direct investment. Officials highlighted record FDI inflows of $46.1bn in 2023-24, boosted by the $35bn Ras El Hekma development project.

A central pillar of the strategy is manufacturing. Egypt's new industrial strategy identifies seven priority sectors: textiles, garments, automotive, food processing, engineering industries, electronics and pharmaceuticals.

"We are aiming to put Egypt on the map of the global supply chain of those industries," said Daniel Calderson, co-founder of Alcazar Energy. "At least top five by 2030."

Energy is expected to play a crucial role in that ambition.

For renewable energy investors, Egypt's combination of abundant solar and wind resources, improving regulation and large-scale energy demand is increasingly attractive. Alcazar Energy Partners, one of the country's largest renewable investors, expects to reach financial close this year on approximately $1.2bn of wind investments.

"I really feel strongly that Egypt is an exceptional financing destination," said Calderson.

The economics are compelling. One planned 500MW wind project alone could generate around $150mn of annual savings by replacing gas-fired generation, according to the company. If Egypt achieves its target of sourcing 45% of electricity from renewables, annual savings could reach $11bn.

"Security, economics and emissions in Egypt are fully aligned," said Calderson.

The EBRD, which has invested more than €14bn in Egypt since 2012, believes the country's renewable energy potential extends beyond electricity generation.

"The potential for the country to do manufacturing and export both products and energy from Egypt is dramatic," said Reem El Saady, deputy head of the EBRD’s Egypt mission.

Officials and investors also highlighted the rapid growth of Egypt's fintech sector, which has become one of the country's most dynamic areas of innovation.

ValU, one of Egypt's largest consumer finance platforms, grew from a corporate startup launched with a $10mn investment in 2017 into a publicly listed company with a market capitalisation of approximately $500mn.

"We were able to go from an idea to a public company in seven, eight years," said Walid Hassouna, CEO of ValU.

The sector's expansion has been supported by cooperation between banks, regulators and non-bank financial institutions. Unlike many other markets, fintech companies in Egypt often work alongside banks rather than competing directly with them.

Financial inclusion remains a major opportunity. According to ValU, around 60% of its customers had never previously borrowed before using the platform.

The company is now expanding into green finance, including electric vehicles, renewable energy and energy-efficient appliances.

Together, manufacturing, renewables and fintech are forming the backbone of Egypt's economic strategy. Supporters argue that the combination of scale, infrastructure and policy reforms gives the country an advantage over many emerging markets.

For investors, the government's message is straightforward: Egypt is no longer simply a large consumer market but increasingly a platform for production, exports and innovation.