EXCLUSIVE- Egypt is the “most attractive reform story” among EEMEA countries- Renaissance Capital: Improving macroeconomic indicators and stabilizing public finances mean that Egypt is now the “most attractive reform story” among EEMEA countries, Charlie Robertson, global chief economist at Renaissance Capital, tells Enterprise. Rising economic growth, a shrinking budget deficit, interest rate cuts and increasing foreign direct investment: all of this is good news for investors, who are seeing Egypt as an increasingly attractive destination. “There is no other country in the EEMEA space where we see such commitment to successful reforms, and such obvious prospects for economic transformation,” he says.

Expect more credit rating upgrades: RenCap expects other ratings agencies to follow in Fitch’s footsteps and upgrade Egypt’s sovereign credit rating. High GDP growth, a primary budget surplus and falling interest rates will continue to improve the country’s credit profile.

Is Egypt on the verge of industrializing? RenCap’s analysis of electricity consumption and adult literacy rates suggests that Egypt has had the capacity to industrialize since 2010 and subsequently grow by 4-6% on a per capita basis. The political and economic instability that characterized the post-revolutionary years have held the country back from ramping up its industrial capacity. But, Robertson says, the news that Nissan intends to start producing cars in Egypt is a sign that we could finally be about to take industrialization to the next level.

Egypt’s lack of transparency is making the lives of investors and analysts harder, Robertson says. Accessing economic data in Egypt is harder in comparison to other emerging markets, and making it more readily available will increase confidence among investors, potentially helping to reduce our borrowing costs.