Why Cairo Is the Beating Heart of North Africa’s Deep Tech Scene

In the race to shape the future’s advanced and export-driven job markets, deep tech is emerging as the defining force behind innovation, prosperity, and economic resilience.

This year’s Deep Tech Index affirms a rising star in this domain: Cairo, the beating heart of North Africa’s deep tech scene.

Conducted annually by the European Centre for Entrepreneurship and Policy Reform (ECEPR) with the support of Nordic Capital, the Deep Tech Index maps and evaluates the global landscape of cutting-edge companies.

While North America, Europe, and Asia dominate, the report reveals that Africa is quietly cultivating its own centres of excellence, with Cairo leading the charge.

“Cairo stands out as the deep tech centre of North Africa,” says Nima Sanandaji, CEO of ECEPR.

At the core of Cairo’s rise is its strength in clean tech: an area particularly relevant as Africa’s urban populations grow and cities grapple with the environmental challenges of scale.

The city’s innovative spirit is increasingly channelled into sustainable solutions, making it not just a tech hub, but a centre for purpose-driven progress.

Cairo’s momentum is more than a local success story. It’s a signal that technological development is intrinsically tied to economic and social well-being. Countries that lead in deep tech don’t just innovate, they create. They produce high-value jobs, improve national competitiveness, and elevate living standards.

The Deep Tech Index reveals that youth unemployment is significantly lower in nations with a high density of world-leading deep tech firms per million adults. For every additional leading company, unemployment drops by 0.46 percentage points, and youth unemployment decreases by 0.78 percentage points. These firms, often at the upper end of the value chain, generate substantial export revenues and help anchor advanced economies.

“High-quality education that develops technical skills is vital for future competitiveness. Leading countries boast top-tier schools in these fields. Through targeted educational investments and favourable tax policies, nations can enhance their standing in this sector and attract both domestic and international talent,” says Klas Tikkanen, COO of Nordic Capital Advisors.

Indeed, the Index shows that thriving deep tech ecosystems are often underpinned by strong property rights, low capital gains taxes, exceptional mathematics and engineering education, and internationally recognised universities.

Cairo, blending its youthful energy, entrepreneurial spirit, and academic strength, has become the pulse of innovation in North Africa. As deep tech reshapes global economies, the city is not just keeping pace, it’s setting the rhythm.

The Index charts the locations of the world’s 500 leading deep tech firms and is available via ECEPR, with full findings and methodology detailed at www.ecepr.org.