Egypt aims to raise ICT's contribution to GDP to 5% by 2025



Sun, 29 Aug 2021 - 03:19 GMT


Sun, 29 Aug 2021 - 03:19 GMT

 Economy Index - Pixabay

Economy Index - Pixabay

CAIRO – 28 August 2021: The quantitative targets of the communications and information technology sector in the medium term are to achieve three main goals by 2025, which are to raise the sector’s contribution to the grpss domestic product (GDP) to reach 5 percent, compared to a target of 2.6 percent expected in 20/2021, in addition to increasing its export capacity of products., according to Minister of Planning and Economic Development Hala El-Said.

El-Said added that the sector and outsourcing services to reach $6 billion, compared to the $3.5 billion targets for the 21/2022 plan year.

Moreover, the share of technology exports to total merchandise exports has increased to 5 percent, compared to the current rate, which does not exceed 2.5 percent, noting that the communications and information technology sector investments in the year 21/2022 are estimated at LE 60 billion.

The Ministry of Planning and Economic Development reviewed the objectives of the communications and information technology sector in the current fiscal year 21/2022 plan, which is the fourth year of the medium-term plan for sustainable development (18/2019 - 21/2022).

The minister stressed that the world today is experiencing a real revolution in the field of communications and information technology, and no country aspiring to achievement and development to achieve sustainable development at all levels can no longer succeed without this sector is one of its main pillars.

The ICT strategy supports achieving the goals of Egypt’s Vision 2030 in building a digital Egypt, by developing ICT infrastructure, enhancing digital and financial inclusion, supporting capacity building, encouraging innovation, and ensuring information security.

The report of the Ministry of Planning and Economic Development stated that the objectives of the plan for the year 21/2022 for the telecommunications and information technology sector are that the telecommunications sector comes at the forefront of the sectors whose high growth rate is expected to continue to exceed 16 percent during the year 21/2022. 

The conditions of the Corona pandemic and its spread since the beginning of 2020, have shown the critical importance that this sector occupies, as the demand witnessed an unprecedented boom in technological means in communications and reliance on Internet networks in light of the precautionary measures calling for social distancing, as well as conducting all financial and banking transactions through the automated service.

The pandemic highlighted the role of technical education and distance education as an alternative to school education, as well as the role of working from home as an alternative to traditional work, as well as the revival of e-commerce, banking, and e-government within the framework of financial inclusion.

Based on the foregoing, the sector’s production is expected to increase by 20.4 percent at current prices, as well as to increase the sector’s output by 20.5percent, and it is expected that the performance indicators will continue to improve significantly in the year of the plan, whether in the field of developing communication systems and its infrastructure, or deepening the local industry, or developing the sector’s exports of electronic products, outsourcing services, and computer applications.

Likewise, the sector's contribution to the GDP is expected to rise to 2.6 percent in the plan year, and the sector's contribution to economic growth will remain high at around 11.5 percent in the plan year.

In the field of education, training, capacity development, and human skills, it is aimed to continue training about 100,000 young men and women in technological disciplines that are in growing demand, especially in light of the Fourth Industrial Revolution, as well as expanding initiatives that support technological education and digital transformation, including increasing electronic exports to about $ 3, $ 5 billion in the year of the plan, in addition to following up on the implementation of the second phase of the Internet development plan, which started in the second half of 2020 for LE 300 million.

The most important development programs targeted in the sector for the 21/2022 plan are the Transformation to Digital Society Program, the Technology Skills Development Program, the Communications Infrastructure Development Program, the Electronics Design, and Manufacturing Program, and the Information Security and Electronic Signature Development Program.




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