An ICT Summit Where Foreign Investors Do Not Fear to Tread

Egypt hosts ITU Telecom Africa for second consecutive time, highlighting its important position in the continents’ ICT industry

Copyright © Egypt-On.com


Cairo, xx May 2008: Egypt will be hosting ITU Telecom Africa for the second consecutive time. The event, taking place at the Cairo Exhibition Centre from 12–15 May 2008, brings together more than 250 exhibitors from 30 countries; almost 6000 trade visitors from 75 countries; 500 dignitaries including 50 ministers; regulators and more than 30 CEOs. The Egyptian government is providing unequivocal support for the event where information communication technology (ICT) stakeholders from all over the world will connect, interact and map the future of ICT in Africa.

Egypt’s ICT development has taken a significant step forward as a result of several reforms, not only in the sector but also in the country’s wider business environment. The number of ICT companies working in Egypt has increased rapidly from 226 in October 1999 to 2400 in February 2008.

Furthermore, the country has seen huge leaps in the number of internet users in the country, rising from 0.3 million in 1999 to a staggering 8.97 million in February 2008. Coupled with increases in the number of fixed line communications (currently 11.330 million) and mobile phone subscribers (42.33 million compared to 1 million in 1999), Egypt is constantly improving its ICT infrastructure.

The unique geographical location of Egypt has allowed it to become a hub linking Africa, Europe, Asia and the Arab world. Many multinational ICT companies have capitalized on this location and on Egypt’s sound infrastructure and large talent pool to set up regional and global headquarters. The latest multinational to embrace Egypt is Teleperformance, one of the world’s leading providers of outsourced CRM and contact centre services, which has set up a new contact centre in Cairo that will be home to over 2500 workstations. Other companies using Egypt as a base for their software development and technical support contact centres as well as research facilities include IBM, Intel, Microsoft, Cisco and Oracle. The move by such high-profile companies highlights how fast Egypt is becoming the desired location for setting up business process outsourcing and knowledge process outsourcing centres.

Commenting at the ITU Telecom Africa event, His Excellency Dr Tarek Kamel, Egypt’s minister of communications and information technology said: “In our own ICT sector we are demonstrating how partnerships between government, private sector, multinationals, trade associations and our young and talented workforce is helping to make Egypt part of the global knowledge society.”

With the support of ITIDA, Egypt’s IT industry development agency, the country’s outsourcing industry continues to grow. A recent Global Service-Tholons Study of emerging outsourcing cities recently listed Cairo as the world’s 11th best city for outsourcing specific functions. Furthermore, A. T. Kearney’s 2007 Global Services Location Index Egypt leads the African and Middle East region and is ranked 13th, based on financial attractiveness, people and skills availability, and business environment.

People are a key component of Egypt’s attractiveness as an outsourcing location. It is currently ranked 25th overall in the world in Heidrick & Struggles’ Global Talent Index. The index, which is developed in cooperation with the Economist Intelligence Unit, looks at a country’s education quality, its nurturing environment and the proclivity to attracting talent. However, Egypt is ranked 15th in the quality of universities and business schools and 18th in the proclivity to attracting talent.

To support this ongoing development of its workforce, the country started an ambitious “employability” skills program in the higher education stage. The first phase of this endeavor involves training more than 3000 students from IT and non-IT faculties on skills needed for the IT services market. The second and third phases will increase the number to more than 15000 students annually.

Commenting on Egypt’s position in the global market, Dr Hazem Abdelazim, CEO, ITIDA said: “Egypt has built an entire ecosystem to support the country’s ICT industry. The availability of a qualified multilingual workforce, excellent infrastructure and political stability has all helped attract companies to invest in Egypt.”

Egypt’s Smart Village has been a particularly success story for the country. Following its opening in 2001, Smart Village Company has been in talks with Nigeria, Ghana and Gambia to set up parks similar to that in Cairo.

The ICT is one of the fastest-growing sectors in Egypt and is at the forefront of Egypt’s development. As an African country, Egypt has made gigantic steps in the IT/ITES sector and proved to be the land where foreign investors will not fear to tread. In its annual “Doing Business” report, the World Bank hailed Egypt as the world top reformer and said “Egypt's reforms went deep with substantial progress in 5 of the 10 areas studied by Doing Business, and the country greatly improved its position in the global rankings as a result”. Egypt also has been ranked as the first choice for investors in the North Africa Region and the second choice in the continent after South Africa in The World Investment Prospects Survey 2007-2009 issued by the United Nations Conference on Trade and Development (UNCTAD).

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Notes to editors:

Contact details:
Ahmed Reda
Media & Communication Manager
Information Technology Industry Development Agency
T: +202 3534 5185
E: areda@itida.gov.eg