Cairo, Egypt – July 14, 2021 - The Information Technology Industry Development Agency (ITIDA) has participated in the “Egypt: Your Hub for IT Services” webinar, organized by the U.S.-Egypt Business Council, the Embassy of Egypt in Washington, in collaboration with the American Chamber of Commerce in Egypt (AmCham).
The webinar aims to encourage and support foreign and US investors seeking to enhance their global presence and leverage Egypt as a global hub for IT/ITES and technology innovation.
The webinar was attended by Mr. Motaz Zahran, Ambassador of Egypt to the United States, Mr. Steve Lutes, Executive Director of the U.S.-Egypt Business Council, Engineer Amr Mahfouz, ITIDA’s CEO, Mr. Hisham Fahmy, CEO of the AmCham Egypt and representatives of several major Multinational companies.
Egypt’s ICT sector has recently recorded remarkable economic indicators; the sector is expected to achieve a growth rate amounting to 16% during the current fiscal year. The value of the sector’s domestic product increased from EGP 93.5 billion to EGP 107.7 billion, during the last fiscal year, with a contribution of 4.4% to the GDP. Furthermore, the value of digital exports improved from USD3.6 billion to USD4.1 billion.
Motaz Zahran, Ambassador of Egypt to the United States said that “Egypt is undergoing major digital transformation, much of which could be attributed to its regional leadership, connectivity and digital literacy”. He noted: “Egypt’s commitment to building the ICT sector is part of the broader Digital Egypt initiative, which adheres to three key pillars, namely, digital transformation, digital skills and jobs, and digital innovation”.
He further noted that on the legislative and regulatory side, the Egyptian government has made legal reforms to in consumer protection, intellectual property, personal data protection and digital signature.
Zahran highlighted that the Egyptian government has strategically and heavily invested in developing its ICT infrastructure and expanding the fiber optics across the country, resulting in tangible outcomes, as Egypt came 2nd in Africa in Internet speed, with an average speed of 33Mbps.
For his part and during his introductory remarks, ITIDA’s CEO Amr Mahfouz said that Egypt’s ICT sector is witnessing great development, where a large number of national-scale initiatives and projects are being implemented to enhance Egypt's position on the global ICT industry map.
He emphasized Egypt’s resilience during the global pandemic due to the government’s strategic infrastructure investments, contrary to other ICT markets.
Mahfouz affirmed that ITIDA is extending unprecedented support in areas of human capacity building and developing digital skills, by offering training programs on a national scale in high technology and IT tracks, in addition to providing scientific degrees in partnerships with prestigious universities and global tech players.
“Egypt’s ICT sector is steadily growing in terms of its aggregate contribution to the GDP”, Mahfouz said. “To take full advantage of the innovation and technologies, we believe that it is vital to maximize the potential for our partnerships, explore new collaborations, both with longstanding businesses that have been doing business in Egypt and newly created startups, to tap into that entrepreneurial community”, Mahfouz added.
In his opening remarks, Mr. Steve Lutes, Executive Director of the U.S.-Egypt Business Council, said that “Egypt’s digital economy has seen accelerated adoption of technologies and innovation in magnitudes of growth during the pandemic”.
Hisham Fahmy, CEO of AmCham Egypt commented: “Egypt’s ICT sector is a main contributor to the country’s GDP which supports attracting more investments to Egypt.” Fahmy stressed the necessity to the continued development to keep pace with disruptive technological, especially artificial intelligence and cyber security.
During the webinar, Amani Rabie, ITIDS’s VP for Markets Development, reviewed the investment opportunities available in the ICT sector and showcased the value proposition of Egypt as a favorite destination for IT and business services.
Rabie pointed out that more than 40 US Tech and non-tech companies are already working in Egypt where they are leveraging the country’s capabilities in the offshoring industry and where they have opted to outsource their IT services and shared services centers to Egypt.
The meeting also discussed enhancing bilateral trade between Egypt and the U.S., and the existing investment opportunities in the sector. In this regard, Mahfouz stated: “We look forward to further cooperation opportunities and to attract more direct investments from the United States, as we encourage US companies to expand their business operations in Egypt”.
He added: “Such opportunities always instill exchange of experience, latest technologies, and know-how, in addition to deepening the strategic relationship between both countries”.
It is worth noting that Egypt has been ranked 15th globally in the latest Kearney report; “Global Services Location Index 2021”. The country has recorded 5.62% in the index, retaining its top spot in the Middle East and Africa region.