Market Trends of Egypt ICT Industry
This section covers the major market trends shaping the Egypt ICT Market according to our research experts:
ICT Export to Boost the Industry
- The Egyptian economy is anticipated to rise significantly in the upcoming years due to the ICT sector. To do this, the government developed a growth strategy with several key objectives, including enhancing the quality and usability of mobile, internet, and government services provided to citizens. Utilizing ICT infrastructure to enhance government efficiency, focusing on health, education, and tourism, and assisting in developing a sizable and diverse export-focused industry.
- During the Egyptian Economic Conference of the last year, Amr Talaat, the minister of communications and IT, spoke in support of a Roadmap for boosting technology exports. The ICT Minister stressed that the value of ICT exports comes from their foundation in innovation, creativity, and creative labor. He also stated that among the state sectors, the ICT industry is at the vanguard and oversees boosting Egypt's capacity to promote exports and draw in international investment.
- The ICT sector is known to have the fastest growth rate in Egypt. During the last fiscal year, the industry reached new heights, exceeding all other state economic sectors with a growth rate of roughly 16.3%. This has been made possible by the rise in the number of multinational corporations establishing operations in Egypt and the exponential development of ICT exports, which reached approximately USD 4.9 billion in last financial year.
- Amr Talaat (MCIT) also confirmed during a panel discussion at the Egyptian Economic Conference that Egypt had spent EGP 50 billion (USD 2 billion) on digital transformation initiatives. Notably, Egypt has increased the budget for the ICT sector by 22.6% in the current financial year compared to the prior fiscal year to increase exports in this industry.
- According to the research of the World Bank, ICT service exports in Egypt dipped during the last decade. However, from the period post-pandemic, the ICT export for the country is again steeply rising. For the last year, ICT service exports in Egypt reached a high of USD 1.4 billion.
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Digital Transformation Supported by the Egyptian Government
- Egypt has a unique opportunity to use digital transformation to transform several economic sectors, including financial services, retail, healthcare, agriculture, and manufacturing. This would open opportunities for people and businesses, as well as have an impact on inclusive development and economic growth.
- According to Egypt's Vision 2030 and digital transformation strategy, both the public and commercial sectors have come up with a vision and plan to lay the groundwork for Egypt's transformation into a digital society. As a result, the Digital Transformation Summit would be held in Egypt to discuss a wide variety of issues that are crucial to this journey and provide executives the chance to delve deeply into the new economy and learn what it means for their companies.
- Egypt has been implementing a solid plan and strong course of action to change the current community ecosystem and government services into a totally digital and data-driven ecosystem to deliver public services quicker and easier manner. The Ministry of Communications and Information Technology (MCIT) aspires to provide public value, including value for citizens via simple access to official documents and information and value for the government through increased efficiency.
- The Egyptian government planned to introduce a series of "TIBA Sat" for high-speed broadband internet and telecommunications in partnership with Airbus Defence and Space and Euro Star for a government organization. It would be a key component in achieving Egypt Vision 2030 for SDGs and shifting to a secure digital economy.
- Furthermore, The Egyptian government is developing national payment systems and overseeing frameworks to reduce risks and create safe, efficient, and effective systems to achieve financial inclusion using FinTech Apps by integrating the largest number of citizens into the banking system and by bringing the informal sector into the formal sector.
- In the Digital Quality of Life ranking for the last year, Egypt scored 0.35. As a result, the nation was ranked sixth among the 23 reporting African nations and 85th overall out of 117 nations. With 0.11 points each, e-government and e-infrastructure scored the highest ratings. The pillar with the lowest value, however, was internet accessibility, scoring just 0.01 points.
