The development of Egypt’s ICT sector is supported by concerted efforts to diversify the economy and develop knowledge-based industries. In FY 2019/20 and FY 2020/21 the sector’s growth significantly outpaced that of the broader economy. This trend is set to continue, with the government working to bolster internet access in rural areas, improve service delivery, and develop infrastructure that will support data centres and technologies such as artificial intelligence (AI). The acceleration of ICT development has been driven in part by the Covid-19 pandemic, which underscored the urgency of digitalisation efforts as many businesses and social interactions shifted online.
Oversight
The Ministry of Communications and Information Technology (MCIT) oversees the ICT sector. Created in 1999, the MCIT aims to boost the digital economy; ensure that the sector is a key driver of growth; and create an ecosystem that supports transparency, competition and inclusivity. The ministry’s longterm framework for digital transformation is the Digital Egypt Strategy, which includes targeted investments, digital government reforms, training programmes and infrastructure development initiatives. It also focuses on value-added segments such as electronics design and manufacturing, technology parks and data centres in order to maximise the sector’s contribution to GDP.
The MCIT has also worked to leverage international meetings such as the COP27 UN Conference on Climate Change, which Egypt will host in November 2022, as opportunities to develop ICT infrastructure further. In February of that year the ministry released plans to install smart systems for visitors and participants at the event, as well as leverage AI and other tech tools.
The National Telecommunications Regulatory Authority (NTRA), for its part, works to ensure that the telecoms market is transparent, competitive and respects user rights. Established in 2003, the authority prioritises cybersecurity, national security and service quality. It works to bolster access throughout the country by offering incentives via the Universal Service Fund, created in 2005, among other initiatives. The authority also allocates radio frequency spectrum, organises interconnection agreements and certifies telecoms equipment in line with international standards.
Established in 2004, the Information Technology Industry Development Agency (ITIDA) works to support the development of Egyptian ICT companies by advising policymakers, strengthening local capacity, and attracting both local and foreign investment. The agency aims to support Egyptian companies throughout their lifecycle, offering incubation, accelerator and mentorship programmes for start-ups and new entrants; skills development for more established entities; and other supportive infrastructure such as technology parks and innovation clusters, as well as services related to e-tenders and intellectual property rights.
Outlook
The pandemic saw a swift increase in demand for telecoms services as business and social interactions moved online. In a global context, this has allowed Egypt to position itself favourably to companies looking to strategically realign their operations. “In the current global situation where the supply chains of many industries are being disrupted and reshaped, IT offshoring is not an exception,” Mahfouz told OBG. “Many businesses are diversifying their operations and delivery location portfolio, and Egypt is well positioned to cater to this global demand and secure its fair share of the global market.” On a national level, the more widespread use of digital payments, online shopping and other e-services is expected to help sustain growth and investment in the sector in the coming years as companies adapt to meet new customer demands.
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