1 - Towards a Digital Society and Knowledge-based Economy
The Egyptian Information Society Initiative,
introduced in 2004, achieved tremendous
progress in expanding and modernizing the ICT
infrastructure. It also laid firm foundations for
continuous development at a rate at which
Egyptian society could adapt, reducing the
digital divide between different sectors of
society by providing access to high-speed
internet and ICT tools for individuals and
institutions. A major success of the initiative
was the establishment of an educational base
offering all Egyptians the chance to adopt
and use ICTs. The plan also focused on using
ICTs to develop and improve public services,
particularly in the fields of healthcare and
education. The 2004 strategy focused on Public
Private Partnerships and on fair regulation of
the ICT market.
Recognizing the essential role of ICT in social
and economic development, MCIT devised the
ICT for All program to fulfill two main goals:
first, raising citizens’ quality of life by helping
the government improve public service
provision through the use of ICTs and the
development of a knowledge-based society;
and second, facilitating citizens’ access to
computers and high-speed internet, raising
youth employability through ICT training,
thus, encouraging government employees
to undertake internationally accredited ICT
certification programs.
Egypt’s ICT Strategy of 2007 was formulated
to build on the progress achieved by the
government in partnership with the private
sector and civil society.
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It focused on establishing local, regional and
global partnerships attracting investment
through a range of incentives, and the
establishment of technology parks such as
Smart Village and Contact Center Park in Maadi.
A major component of the strategy was the
promotion of exports in ICT outsourcing services.
Strategically located at the crossroads of Europe,
Africa and the Middle East, and enjoying and a
large pool of young, multilingual and technically
proficient human resources, Egypt has quickly
developed a strong outsourcing industry and
positioned itself as a world leader in the field.
The successful growth of Egypt’s ICT sector is
clear in the following indicators:
During the period 2008/09-2010/11, the ICT
sector raised an annual average of LE 33.71
billion in revenues, with an average annual
growth rate of 11.63%, and contributed
about 4% of GDP
The ICT sector recorded a growth rate of
3.71% in the last quarter of 2011
Between 2006 and 2011, the ICT sector
contributed with LE 82.28 billion to the treasury.
Egyptian exports of cross-border outsourcing
services via the internet were worth $1.487
billion a year by the end of 2011. Egypt,
represented by the Information Technology
Industry Development Agency (ITIDA), was
named Offshoring Destination of the Year in
2008 by the National Outsourcing Association,
received a European Outsourcing Award in
2009 and was ranked fourth in the 2011
Global Services Localization Index published
by A.T. Kearney
At the end of 2011, the number of mobile
phone subscriptions was about 83.4 million,
representing a penetration rate of about
102.76%
At the end of 2011, the number of internet
users in Egypt was about 29 million with an
annual growth rate of 26%
At the end of 2011, the number of fixedline subscribers reached 8.71 million, with a
penetration rate of 10.91%
The Smart Village technology park has
attracted investments amounting to LE 6
billion and created 40,000 job opportunities
followed by Cairo Contact Center Park in
Maadi
42,000 direct job opportunities and 120,000
indirect job opportunities were created in the
last three years through outsourcing and the
export of technology services
Despite the difficult circumstances of the
transition period ushered in by the revolution
of January 2011, which has had a major impact
on the Egyptian economy, the ICT sector has
continued to flourish, with its growth rate rising
to 3% in the fourth quarter of 2011.
The sector has also continued to create jobs,
with a 41% rise in the number of employees
of international ICT companies in the Egyptian
market in 2011 over the previous year and an
18% rise in those employed by local companies.
In addition, and according to the Ministry of
Planning, primary indicators for the third quarter
of the fiscal year 2011/12 show that the ICT
sector recorded an increase in real growth rates
from 2.8% in the third quarter of 2010/11 to
8.9% in the third quarter of 2011/12.
In November 2011, a report issued by
Oxford Business Group noted the significant
investments in the Egyptian ICT sector despite
the disturbances following the revolution, and
that the sector is expected to recover to levels
seen prior to the revolution and the global
financial crisis. In 2008/09, the sector attracted
investment of LE 14 billion.
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