ITIDA offers local electronics manufacturing incentives to foreign and Egyptian investors

The Information Technology Industry Development Agency (ITIDA) organised workshops, attended by more than 80 representatives of foreign and local companies, to offer packages and incentive programmes designed by the authority in coordination with the Ministry of Communications and Information Technology. The workshops are meant to cover the industry’s needs such as circuits designing and manufacturing …

The Information Technology Industry Development Agency (ITIDA) organised workshops, attended by more than 80 representatives of foreign and local companies, to offer packages and incentive programmes designed by the authority in coordination with the Ministry of Communications and Information Technology. The workshops are meant to cover the industry’s needs such as circuits designing and manufacturing and electronic systems and products.

Hossam Osman, executive vice president of ITIDA, said that the general framework of the strategy adopted by the state in the field of electronic industries is based on stimulating foreign investments. He added that this strategy enables research development and innovation, while promoting exports by activating trade agreements, developing the capacity of human resources, and improving the regulatory environment.

This comes in light of the presidential initiative for the design and manufacture of electronics called Egypt Manufactures Electronics, which is overseen by the Ministry of Communications and Information Technology. The initiative aims to make the electronics industry one of the pillars of economic growth by doubling Egyptian electronics exports, and achieving self-sufficiency in the local market, which lowers the rate of imports. The initiative also aims to provide new job opportunities for professionals and technicians working in this field.

The initiative seeks to manufacture a number of promising electronic products including mobile phones, tablets, navigation devices, and its feeding industries such as lithium batteries, electric chargers, screens unit, speakers, LED lighting products, smart counters, televisions, and LED screens. Under the initiative solar energy systems such as solar cells, transducers, controllers, energy batteries, and industrial electronics would have local manufacturing rates ranging from 40-60%.

Stimulus programmes provided by ITIDA includes encouraging companies to increase their investments in the field of electronics such as their capital attraction programme, which includes financing a local partnership with an international company or financing a local company that manufactures one of the most promising products and its feeding components with advanced technology.

Stimulus programmes also include the capital programme for modernising feeding industries. This programme includes financing a local party to develop existing feeding industries. ITIDA also offers a programme for supporting operating expenses, which aims to increase competitiveness of some components manufactured locally such as printed circuits, micro-chips packaging, headphones, and lithium batteries.

ITIDA also has an innovative designs stabilisation programme designed to finance the research, development, and creativity of electronic components in electrical appliances, automobiles, and other projects.

Stimulus programmes also include the development programme for financing companies’ research in the field of the Internet of Things and emerging electronic companies. This programme provides financing in the field of electronic design and covers the financing costs of design patents on an international level.

ITIDA also offers a technical and specialised training programme, which focuses on basic and advanced training levels for workers in the electronics industry. The programme is meant to generate 500-800 engineering graduates a year. Furthermore, the technical training programme offered by ITIDA aims to produce 2,000 skilled technicians and workers a year. Another programme aims to train 50-100 entrepreneurs and leaders every year.

Jobs and Skills for PwDs with Focus on ICT-Based Solutions Project Session to Hold

In celebration of the International Day for Persons with Disabilities (PwDs), a dialogue session on the Jobs and Skills for PwDs with Focus on ICT-Based Solutions Project is held on December 21, in Cairo, where representatives of the community, training and recruiting institutions, as well as the project partners, participate in the event. The event aims to review and exchange experiences in the field of qualifying and employing PwDs using ICT tools; in light of the state's Strategy for Sustainable Development—Egypt Vision 2030, and cooperation with international institutions and civil society organizations in raising awareness in the field of learning skills for employment opportunities.

The celebration includes three sessions, the first discusses the training on employment skills programs, while the second is about how to create jobs for PwDs, and the third session on the holistic integration and employment. The sessions tackled best practices in the field of PwDs employment, and the challenges facing them with means to overcome those challenges.

The project is launched by EGYPT ICT Trust Fund in September 2014, in partnership with the United Nations Development Program and the International Labor Organization (ILO), in line with the Ministry of Communications and Information Technology (MCIT) role in activating the sustainable development using ICTs, which is particularly concerned with empowering PwDs and developing their abilities, providing more training and employment opportunities and helping them integrate into the labor market.

The project is based on several objectives including qualifying persons with visual and physical disability with skills needed by the labor market and raise the efficiency of specialized NGOs to provide services and better job opportunities for PwDs. It also aims to contribute to finding practical training opportunities in the private sector for their employment and innovate technological solutions and applications to support them in their daily lives.

The project targeted young people with physical and visual disabilities in the age group from 18 to 35 years, exactly 600 PwDs, and 60 trainers to qualify them for the training programs, which varied between customer service, call centers, management and entrepreneurship skills, presentation skills, leadership and communication skills, marketing and e-marketing skills, management and planning of small and medium enterprises, the maintenance basics of computers, laptops and mobile phones, and the basics of design and graphics.

Egypt Partakes in OECD - CDEP MSG Meeting

Egypt, represented by the Ministry of Communications and Information Technology (MCIT), will participate in the Ministerial Steering Group (MSG) Meeting that prepares for the Organization for Economic Cooperation and Development (OECD) Committee on Digital Economy Policy (CDEP) Ministerial Meeting, held on February 22-23, in Paris, France. CDEP Ministerial Meeting is scheduled to be held in June 2016.

MCIT is a member of the CDEP Ministerial Steering Group where Egypt is the only developing country that joined the Steering Group in light of its valuable contributions to the works of CDEP and its affiliated sub- committees. The Steering Group includes the United States, Canada, Japan, Korea, Mexico, Italy, the United Kingdom, Norway and Switzerland.

MCIT also participated in the meetings of the Steering Group of CDEP Ministerial Meeting held in June 2015 and a number of virtual meetings. 

This MSG meeting is due to complete discussions on the preparations for CDEP Ministerial Meeting 2016. The MSG meeting is scheduled to complete discussing the amendments received by CDEP from the States representatives on the initial version of the Ministerial Declaration and deliberate the working papers and agenda of the Ministerial Meeting, along with preparations for the meeting sessions.

OECD was established in 1961, and includes 34 member states. OECD aims to assist states to increase their economic growth, employment rates and the trading volume between member and non-member states. Egypt joined OECD as a permanent observer at the ad hoc committees of the Organization in 2007.

OECD plays an important role in the ICT sector service through the preparation of studies and research that help governments in comparing different policy experiences and find solutions to common problems. This is in addition to its role in coordinating the domestic and international policies of the countries and identifying good practices.

MCIT joined OECD in 2008, representing Egypt in the Committee for Information and Communication and Computer Policy which is known now as the Committee on Digital Economy Policy (CDEP).

Source: Ministry of Communications and Information Technology (MCIT), Smart Village, Cairo, Egypt

Egypt builds upon its outsourcing growth | ICT | Egypt | Oxford Business Group

Economic News Update from Oxford Business Group, OBG
Over the past 15 years, Egypt has built a growing reputation as a centre for export-oriented ICT services, particularly business and knowledge process outsourcing (BPO and KPO), with revenues that exceeded $1.1bn in 2011, according to a Ministry of Communications and Information Technology (MCIT) presentation last year.

As with many other service sectors, the BPO and KPO industries were affected by the fallout from the 2011 revolution. Research by the London School of Economics (LSE), Offshoring Unit in early 2013 found that among prominent outsourcing destinations, Egypt’s risk profile was one of the most elevated in the areas of regulatory risks, macroeconomic risks and political risks. A 2013 report on the “Top 100 Outsourcing Destinations” by US-headquartered advisory firm Tholons cited the fallout from the Arab Spring as the main reason for Cairo’s drop from 49 to 58. Alexandria fell four spots to rank 77 in the same analysis.

However, Egypt’s competitive advantages as a global centre for ICT-intensive industries, including BPO and KPO, are manifold. “In spite of the instability, the quality and competitive costs of Egypt’s
outsourcing services have not been impacted,” Giorgio Modesti, CEO of Teleperformance Egypt, said in an interview with OBG.


The local cost advantage is an important factor: labour, land and power are all affordable by international standards. But while workers’ wages are relatively low, the skills base is strong. As well as native Arabic, English is widespread.  

Competitive skills and cost

Employment estimates vary but the number of people employed in the sector is about 43,000 positions in total. Egypt’s Information Technology Industry Development Agency (ITIDA), part of the MCIT, estimates that each year around 273,000 students graduate from Egyptian universities with degrees in fields suited to outsourcing, including technology and commerce, while 31,000 students are fluent in a Western European language on graduation.


As with many outsourcing destinations, such as The Philippines and Morocco, Egypt grapples with finding qualified labour for middle management roles, but MCIT, in collaboration with the Ministry of Higher Education, has also been in the process of implementing a multi-phase curriculum development and training programme, known as EDUEgypt, at university level to help ensure graduates are able to meet the job requirements of the BPO sector. The programme has been rolled out in 16 universities around the country, with more than 6000 trainees in specialised BPO-related technology-tracks.


Price competitiveness remains an ever-important factor. According to ITIDA, costs for voice-based BPO services in Egypt are comparable to those in India and the Philippines, two global leaders in the sector that have successfully capitalised on low-cost bases. In 2010, the organisation estimated that fully loaded operating costs for call centres stood at $15,830 per employee, compared to $16,360 in the Philippines and $15,010 in India. Of this, personnel costs averaged $9430, with the balance of $6400 accounted for by technology, telecoms, rent and maintenance.


“With its vast dedicated technology and low costs, Egypt is accessible and attractive for global ICT companies, compared with other emerging outsourcing locations,” Maged Taher, CEO of Xceed, told OBG.


Egypt has even taking to exporting some of its BPO expertise to other burgeoning markets, such as Uganda, where the MCIT signed an MOU last year with the Ugandan Ministry of ICT to provide support and guidance for their BPO industry. In spring of 2013, Egypt sent a team of trainers to Uganda to provide technical assistance, and the MOU outlines plans for the further training of 3000 Ugandans employed in the BPO sector in Egypt.  

EU market rebounding

European language skills could become an increasingly important tool this year and beyond. Opportunities for Egyptian outsourcing service providers appear to be on the rise, with a slow but steady recovery in the EU. Demand for outsourced services in Europe climbed in the last quarter of 2013, according to a study released in late February by market research firm Everest Group. The report showed that global outsourcing transaction volumes reached their highest point since the
beginning of 2012.


If demand continues to strengthen in the EU alongside more robust growth in the US and the Arab world, Egypt’s attractive fundamentals as a BPO destination, including its cost competitiveness and skill set, should help the country see a jump in both employment and activity over the medium-term.

Sky News: Future bright for Egypt's web-savvy

Online companies such as Google are seeking out web pioneers in Egypt to put their skills into business prospects.

Egypt's economy may have been damaged, but information technologies in the country have grown by a yearly average of 37 per cent.

The ministry of communications and information technology says it expects the industry in Egypt to be worth 2 billion U.S. dollars (USD) by 2013.

Internet giant Google is one of the many companies hoping to harness the talents of the Egyptian web savvy.

The company is running a nationwide internet entrepreneur competition with a reward of 200,000 USD for the pioneer with the most impressive web concept. Google has already whittled down the many applicants to just 50 budding entrepreneurs.

Head of Google's Public Relations for the Middle East and North Africa Maha Abou El Enain said most of the 4,000 applicants for the competition entitled 'Google Ebdae' (Google Creativity) came from rural communities.

She says the internet is key to Egypt's economic development.

'I think the internet is going to be a key driver as a catalyst to change in accelerating economies like Egypt, especially in its rebuilding process since the revolution,'' she told Reuters.

'Ten to twelve million users are coming online every single year in the Middle East,' she added.

Egypt names new telecommunications minister

Egypt swore in a new Minister of Communications and Information Technology on Monday in a cabinet reshuffle aimed towards appeasing protestors who have grown impatient with the speed of reforms in the country.

Hazem Abdel Azim took the oath in front of Field Marshal Mohamed Hussein Tantawi, the head of the Supreme Council of the Armed Forces, the military body that is acting as the executive since former President Hosni Mubarak handed over control last February.

Abdel Azim is an industry figure and former computing professor. His academic research focused on “Artificial Intelligence, Natural Language Processing and Electronic Computing,” according to a statement released by the Ministry of Communications and Information Technology (MCIT).

He replaces academic Maged Osman, who had held the post since February 2011. A press release from the MCIT said that Azim stressed that the new cabinet is a transitional rather than a caretaker government. During his tenure he would focus on “short-term-high-impact targets.”

Azim is one of 15 new ministers in the cabinet, creating a group in which more than half are newcomers.


Jahd Khalil

Source: http://www.itnewsafrica.com/2011/07/egypt-names-new-telecommunications-minister/

Developing Egyptians’ leadership and administrative skills - The Egyptian Gazette

Developing Egyptians’ leadership and administrative skills

By Marwa Moneer - The Egyptian Gazette

CAIRO - Minister of Communications and Information Technology Maged Osman, and Minister of Higher Education and Scientific Research Amr Ezzat Salama have recently signed a co-operation protocol between Telecom Egypt’s Leadership Development Centre and the Technical Faculties Development Project.

According to this agreement, training sessions on leadership and administrative skills are to be provided to technology faculties’ professors, leaders and administrators affiliated to the Ministry of Higher Education.

The educational level of these calibres shall always keep pace with the rapidly increasing market requirements of higher technology-related skills in different sectors, according to officials. The period of this signed protocol is five years and is to be renewed according to both sides willingness.

As a first stage, the Leadership Development Centre at Telecom Egypt has already provided eight training sessions for 120 trainees representing the elite of scientific calibres at universities and institutions affiliated to the ministry. The total training hours reached 180 along 30 days.

These training courses have achieved a distinguished success praised by the ministry’s trainees themselves. Upon this success, the Technical Faculties Development Project attached to the Ministry of Higher Education proposed to provide more sessions and prepare for a co-operation protocol so that the Leadership Development Centre at Telecom Egypt could pursue the training process.

Viewing that Telecom Egypt has various training sites nationwide, trainers at the Leadership Development Centre, affiliated to Telecom Egypt, will be providing training sessions for the trainees of the Ministry of Higher Education at the nearest locations to their working places in all governorates in order to reduce burden on trainees.

In a previous stage, the Ministry of Higher Education proposed a tender for the provision of training sessions regarding leadership and management skills for faculties’ professors, and leaders. The Leadership Development Centre was ranked the first on this tender.

This is due to the distinguished level of training courses and qualified trainers working at the centre and its ability to meet the training requirements of the Ministry of Higher Education.

Huawei Enterprise seals two deals at Cairo ICT | Huawei Technologies | AMEinfo.com

Huawei Enterprise seals two deals at Cairo ICT | Huawei Technologies | AMEinfo.com

Huawei, a telecom solutions provider announced the signing of two agreements (MOU) with the National Telecommunication Institute (NTI), an affiliate of the Ministry of Communications and Information technology (MCIT), during Cairo ICT 2011.

The first agreement, launching Egypt Governmental ICT Training for Employment Project, was signed by Mr. Rao Xiaobo, Egypt Country Manager and Dr. Ahmed El Sherbini, NTI Director and it was witnessed by Dr. Maged Osman, the minister of MCIT and the Chinese Ambassador Mr. Song Aiguo.


Huawei plans to support the Egyptian ICT sector by providing trainings to ICT graduates in all aspects of the ICT business to enhance their skills and the level of expertise they bring to the Egyptian ICT market.


During a period of 2 years, Huawei aims to train as much as fresh graduates, after which Huawei and NTI will both assist these graduates in finding jobs, by introducing them to partner companies within the MENA region.


As a future plan, and as a symbol of partnership between Egypt and China, the 'Egypt-China Joint ICT academy' will be established in Egypt. The Academy will be fully equipped with the latest technologies from Huawei, such as FTTx, GPON, and LTE. The academy will be a continuation on enhancing Egyptian ICT market by training students in the various technologies.


Rao Xiaobo, Huawei's Country Manager said: "We believe the next period will prove to be a challenging one; therefore we believe that the honest way to pass through is through empowerment. This can only come by providing proper information and structured training that enables youth who are truly the backbone of the ICT industry."


He added:" Huawei has always advocated training through rigorous training modules across the multiple sectors within our industry. This agreement will crown our CSR initiative that we have started 3 years back when we launched our first training center in Egypt."


The ceremony also witnessed the launch of Huawei's Authorized Network Academy (HANA). A worldwide renowned program provided by Huawei, where top universities and/or institutes are chosen as partners. Huawei Egypt is the first to deploy this project and has certified NTI as their strategic partner, to provide certified trainings to Egyptian youth in Huawei network products.


This project is launched in alignment to Huawei's strategic march into the Enterprise business, by giving the opportunity to Huawei users, distributors and partners to learn more about it. The Academy will also make it easier for graduates to find jobs at Huawei or its partners by enabling them and providing them with the right tools.

Friday of work in Egypt | euronews, world news

Friday of work in Egypt | euronews, world news

Friday is traditionally a day of prayer in Egypt, but since the January revolution, it has also been a day of protest.

Now a group of IT workers have come together to convince their fellow citizens to work on Fridays and help boost an economy which shrank by an estimated seven percent in the first quarter of this year.

Employees with US technology firm Oracle are among those taking part.

The idea, suggested by activists via a Facebook group, has been taken up by the IT industry development agency, an offshoot of the ministry of communications.

The turmoil that eventually led to the ousting of former president, Hosni Mubarak, has dented revenues in key sectors such as tourism.

Egypt’s budget deficit is expected to reach 11 percent by the end of next year and talks with the IMF are expected to be concluded on Sunday over a 2-billion-euro bridge loan.

Copyright © 2011 euronews

Egypt May Put Off Fourth Mobile License - Bloomberg

Egypt May Put Off Fourth Mobile License - Bloomberg


Egypt’s government may put off a fourth mobile-phone license following the ousting of the former regime, potentially prompting Telecom Egypt to consider a new bid for the rest of Vodafone Group Plc (VOD)’s local unit.

“There are a lot of changes in Egypt now and we are not sure whether launching a new license at this moment is the right decision from the economic point of view,” Communications Minister Magued Osman said yesterday in a phone interview.

Telecom Egypt, the fixed-line monopoly that owns 45 percent of Vodafone’s local unit, has said it wants to offer mobile- phone services and is prepared to acquire an existing operator if it can’t gain a wireless license. Vodafone, the world’s largest mobile-phone company, ended talks last June to sell the business after Telecom Egypt (ETEL) initiated negotiations.

“They were looking to sell previously,” said James Crawshaw, an analyst at Standard & Poor’s Equity Research. “It could be another boost for the shares if they can sell it for a good valuation,” he said, adding that Vodafone is focusing on selling its stake in Polish operator Polkomtel SA.

Vodafone has risen 31 percent in the last 12 months, compared with a 15 percent gain in the U.K.’s FTSE 100 benchmark index. Sanford C Bernstein’s Robin Bienenstock last year valued the company’s holding in Vodafone Egypt Telecommunications Co. at about 3 billion pounds ($4.8 billion).

Vodafone spokesman Simon Gordon declined to comment. Spokesmen for Telecom Egypt couldn’t immediately be reached.

‘All Options’

Egypt’s Telecommunications Regulatory Authority is studying the possibility of offering a fourth mobile-phone license, Al Ahram reported in April last year, citing Amr Badawi, executive president of the agency. The study will evaluate the impact of the proposed license on competitiveness in the Egyptian market, the newspaper said at the time.

The ministry is working with Telecom Egypt and the country’s three mobile-phone operators -- Vodafone, Mobinil and Etisalat -- and is considering “all options,” Osman said yesterday.

During the protests, which ended the three-decade rule of President Hosni Mubarak, Egyptian authorities cut Internet access and mobile-phone service and instructed operators to send out text messages on its behalf.
“This was a decision that has negatively reflected on all citizens in Egypt,” Osman said. The ministry is currently revising the law to make clear who is responsible for such a decision and aims to publish its draft within three weeks.

Emergency Powers

Vodafone in February said that the authorities can instruct the operators to send messages under emergency powers provisions and that the messages were not written by the company.

“We would like to be more specific in terms of identifying who should be in charge to take that decision if needed,” Osman said, adding that he’d prefer the president or prime minister to be responsible if the government needed to take over mobile services again.

Mubarak resigned on Feb. 11 after 18 days of mass rallies, handing power to the military, which suspended the constitution and announced plans to hold parliamentary and presidential elections this year. Egypt’s ruling military council said in March that it will continue to run the country’s affairs until there’s a new president.
Telecom Egypt, whose Chief Executive Officer Tarek Tantawy resigned last month, is seeking to offer mobile services in a country where about 95 percent of Egyptians are clients of a mobile-phone network. The local government owns a majority stake in the company.

Minority Asset Sales

Vodafone CEO Vittorio Colao has said that the company is focused on sub-Saharan Africa. When the company halted talks about the Egyptian unit last year, analysts said Vodafone didn’t have much negotiating power as there was only one bidder. 

Colao, who took charge in 2008, has sold minority assets to unwind some of the takeovers by his predecessors. Arun Sarin pushed Vodafone into markets such as Ghana and Turkey. Christopher Gent led Vodafone through a six-year $300 billion acquisition spree. 

Vodafone sold stakes in China Mobile, reduced interests in Japan’s Softbank Corp. and in April agreed to sell a 44 percent stake in French operator SFR for 7.95 billion euros to Vivendi SA. The sale brought the total value of Vodafone’s disposals to about $22.8 billion since September. 

To contact the reporter on this story: Jonathan Browning in London jbrowning9@bloomberg.net.
To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

Pilot program for 3G mobile broadband use in remote diagnosis of patients launched in Egypt | Egov Innovation, Government Solution in Asia

Pilot program for 3G mobile broadband use in remote diagnosis of patients launched in Egypt | Egov Innovation, Government Solution in Asia

By eGov Innovation Editors | May 1, 2011
CAIRO – A pilot program to test the technology framework which enables dermatologists to use 3G mobile network to diagnose skin conditions remotely was launched recently in Egypt by various government agencies and the private sector.

Involved in the initiative were Qualcomm's Wireless Reach initiative, Egypt's leading mobile operator Mobinil, ClickDiagnostics, the Egyptian Ministry of Health (MOH), and the Ministry of Communications and Information Technology (MCIT).

Under the program, physicians can now take photographs of patient skin conditions and capture symptoms in text format using a 3G-enabled wireless device. This information is then sent through Mobinil’s 3G HSPA mobile broadband network to swiftly obtain diagnosis from specialists working elsewhere.

During the pilot phase, both an onsite physician and a remote specialist diagnose skin conditions, and the results are then compared to confirm the prognosis. To date, diagnosis comparisons completed during the pilot have demonstrated full agreement in 82.2 percent of cases examined.

The medical staff at the clinics has been equipped with handsets with high-resolution cameras and an application that enables them to send photographs and contextual information about skin conditions to the appropriate specialist.

ClickDiagnostics developed the software application and participated in the development of the business model, training, testing and implementation.

Qualcomm said teledermatology has been successfully used in clinics throughout the world, but the equipment and processes currently used for teledermatology, such as digital cameras, laptop or desktop computers and wired Internet connectivity, often make telemedicine services cumbersome to use and deploy, and expensive to expand and scale.

"Mobile phones can combine the functionality of this equipment into a smaller, less expensive, portable device and 3G networks support the high-bandwidth data transfer required to send high-resolution photos over the Internet," it said.

“This project is an example of how Mobinil’s state-of-the-art network can improve the lives of Egyptians,” added Hassan Kabbani, chief executive officer of Mobinil. “We will continue to work in this direction by cooperating with various parties in diverse fields to make Mobinil’s network technology resources available to serve more than 30 million customers. Mobinil has drawn on the expertise and resources of all the project partners to develop the business model and technology underpinning the remote diagnostics service.”

U.S. and Egyptian Governments Bring Entrepreneurship Delegation to Cairo

 U.S. and Egyptian Governments Bring Entrepreneurship Delegation to Cairo


Media Note

Office of the Spokesman

Washington, DC

January 9, 2011

The U.S. Department of State’s next Global Entrepreneurship Program (GEP) delegation will be to Cairo, Egypt, from January 9 to 12, 2011. In coordination with the Egyptian Ministry of Communications and Information Technology (MCIT), the U.S. Department of State is sending 13 prominent U.S. investors and entrepreneurs–along with several U.S. government employees – to meet with Egyptian innovators, to learn about business opportunities, and to foster partnerships in support of entrepreneurship in Egypt.

“The Middle East and North Africa region is poised to become one of the next global centers of entrepreneurship, and Egypt is a central focal point of entrepreneurial activity in the region,” said the U.S. State Department’s Senior Advisor for Global Entrepreneurship, Steven Koltai, explaining the impetus for the delegation’s trip. “That’s why the U.S. chose Egypt as the first country for the GEP’s launch. Regional investments in economic reform and human and capital infrastructure in Egypt provide a strong foundation for entrepreneurs and investors, both local and international.”

The U.S. delegation will be hosted by representatives from Egyptian government, business, industry, and academia, including MCIT, Cairo’s Smart Village, Nile University, the US-Egypt Business Forum, the American Chamber of Commerce in Egypt, and the American University in Cairo. The Lead Private Sector Partner for the Egypt Delegation and organizer for many of the events in Cairo is Sawari Ventures, LLC.

The delegates will begin their trip on January 9 with a visit to Smart Village to learn about Egyptian and multinational technology companies and the general ecosystem in Egypt for technology, entrepreneurship, and venture investment. On January 10, Google Egypt will host the delegation for a working lunch and presentation on the MENA Digital Landscape, and on January 11, Nile University will provide a presentation entitled, “Research and Innovation in Egypt: Powering the Next Generation of Entrepreneurs.” The delegation will also be received by Dr. Ahmed Nazif, Prime Minister of Egypt. Between these events, there will be spaces for private meetings with Egyptian start-ups. On January 12, at an event hosted by the American Chamber of Commerce in Egypt, the American University in Cairo, and Sawari Ventures, the delegates will award a cash prize for the winning concept for a new Egyptian startup business.

U.S. and foreign investors are already actively engaged in the Egyptian market, and more are looking to join. The GEP’s role is to catalyze, consult, and coordinate with partners (including government ministries, non-governmental organizations, universities, professional associations, foundations and businesses) in support of the burgeoning trend of business start-ups and social innovation in Egypt. The GEP brings U.S. and local partners together to work around six main activities related to supporting entrepreneurship in Egypt: 1) identifying opportunities, 2) training aspiring entrepreneurs, 3) connecting and sustaining them, 4) assisting with access to funding, 5) enabling policy decisions, and 6) celebrating entrepreneurial successes in Egypt.

Today.Az - 16th Azerbaijan International Telecommunications & Information Technologies Exhibition & Conference to be hosted soon

Today.Az - 16th Azerbaijan International Telecommunications & Information Technologies Exhibition & Conference to be hosted soon

BakuTel 2010, the 16th Azerbaijan International Telecommunications & Information Technologies Exhibition & Conference, will take place within International ICT Week on 23-26 November in Baku Expo Center. Over the past 16 years, BakuTel has become the leading ICT forum in the Caspian region, each year attracting the attention of the international community.

The prestige of the event is shown by the fact that, in recent years, the President of Azerbaijan, His Excellency Ilham Aliyev, has visited the exhibition on the opening day. The support of the Ministry of Communications and Information Technologies of the Republic of Azerbaijan underlines the significance of the exhibition for the strategically important ICT sector.

The international authority of the BakuTel exhibition is shown not only by the presence at the exhibition of leading manufacturers of telecommunications equipment and information technologies, but also by the support of industry associations, such as the International Telecommunication Union (ITU), Regional Commonwealth in the field of Communications (RCC). BakuTel also holds “UFI Approved Event” status from the Global Association of the Exhibition Industry (UFI). The exhibition is organised by Iteca Caspian LLC, part of ITE Group PLC (UK).

The General Sponsor of the exhibition this year is Huawei Technologies. The exhibition is also sponsored by Oracle. Among the partners of the autumn exhibitions in 2010 are the companies Azerfon-Vodafone, Pasha Sigorta, Caspel, Greenwich Travel Club, SIAR and Caucas Point Hotel. The technical partner, Caspel, will provide information kiosks for visitors at the exhibition.

BakuTel will bring together over 115 companies from 16 countries, including Azerbaijan, China, Israel, Lithuania, Malaysia, Turkey, USA and others. One measure of the stability and increased potential of the industry is the fact that the area of the exhibition this year has increased by 30%, and the number of regular exhibitors has exceeded 70%. BakuTel continues to attract new exhibitors, with 24 newcomers to the exhibition this year.

Over 40% of the exhibition area will be occupied by major ICT companies, most of which are regular exhibitors at BakuTel. They include: Azel, Azercell Telecom, Azerfon-Vodafone, Aztelecom, Azqtel, B&B TV, Bakcell, Baku Telephone Communications Production Association, Caspel, Caspian Navtel, Delta Telecom, Huawei Technologies, Idrak Technology Transfer, Microsoft, Nokia Siemens Networks, Oracle, Orbital Sciences Corporation, R.I.S.K., SINAM, Softline, Teleradio, Ultra and others.

During the exhibition, leading local and international companies will present to visitors: telecommunications and networks, broadband services and technologies, cable and wireless communications, satellite communications and technologies, broadcasting equipment and technologies, automation software and systems, IT and office technologies, security systems, and banking technologies and services. As in the past, at BakuTel, Azerbaijan’s Ministry of Communications and Information Technologies, together with partner companies, will present the projects “National Computer”, and the creation of a regional innovation zone (RIZ), as well as talk about the progress of the Trans-Eurasian Information Superhighway project, which will cover about 20 countries in Western Europe and East Asia.

The space industry sector will underline the relevance of the exhibition: BakuTel will provide an opportunity to learn about the latest successes in the project to launch the Azersat satellite into orbit, which is at the stage of completion, as well as the establishment of a satellite ground control system and training.

An integral part of the exhibition is the comprehensive business programme, which enables extensive business communication and includes forums, seminars and presentations. Due to the urgency of the problems associated with global climate change, as well as the Year of the Environment in Azerbaijan, the special topic of the conference will be “ICT and Climate Change”. The conference will be held on 24 November in the Hyatt Regency.

The conference accompanies the exhibition each year and is organised by the Ministry of Communications and Information Technologies of the Republic of Azerbaijan. Representatives of relevant ministries, guests and experts from abroad will participate in the conference. The speakers at the conference will include specialists from local and international ICT organisations, who will share their experiences and talk about future projects.

For the first time, the exhibition will include a special section of the Egyptian Ministry of Communications and Information Technology. A separate stand will present the interesting Culturama project, which has already visited many exhibitions around the world. Culturama, abbreviated from Cultural Panorama, is an innovative project which is shown on a nine-screen panoramic display using the latest multimedia applications and display technologies. Staff from the Egyptian Centre for Documentation of Cultural and Natural Heritage will demonstrate the rich, almost 5000 thousand year history of Egypt, citing examples of the country’s Ancient, Coptic and Islamic heritage.

During International ICT Week, the 43rd session of the Heads of Communications Administrations Council of the Regional Commonwealth in the field of Communications will be held. At the session, after discussion of current and future cooperation in the field of communications and information technologies, appropriate resolutions will be passed.

News of the exhibition and conference, articles by key figures in the ICT sector, presentations and industry news will be published in issues of the annual exhibition newspaper, “Daily News”. The newspaper will be distributed free of charge to exhibitors and visitors.

The exhibition will be key event for industry professionals, featuring a wide range of ICT products and solutions: from computer software to the space industry. Maintaining the show’s best traditions, the only difference at BakuTel this year will be the venue. For the first time, the exhibition will be held in Baku Expo Center.

This is a long-awaited event for exhibitors, as holding BakuTel in a modern exhibition centre will allow exhibitors to present their products and services more effectively. Many regular exhibitors have increased the size of their stand, which will expand the range of products and services on offer at the exhibition. At their stands, exhibitors have prepared surprises and prize draws for visitors, which demonstrates the active preparation for the event.

An important feature of this year’s show is the number of presentations of the latest products and services. According to research, the interest of visitors in new products and technologies far exceeds the supply of new products from exhibiting companies, so the organisers of the exhibition have decided to introduce an Innovation Zone, which will present the latest domestic and international ICT equipment, technologies and solutions.

The Innovation Zone, in which over 60% of the exhibitors will participate, will showcase new software programmes, navigation systems, WIMAX, Smart House systems, modern equipment, and much more. So that visitors can easily find these new products, the companies’ stands will display a special sign. The same sign will be displayed on the exhibition floor plans, next to those companies showing a new product. In addition, there will be an Innovation Zone catalogue, which will act as a guide to the world of new technologies and solutions. It will be distributed to visitors at the exhibition. The catalogue contains a detailed description of all the products/technologies/services presented, and the contact details of the companies.

The organisers hope that BakuTel will further serve to strengthen mutually beneficial relations between Azerbaijan and other countries in the development of high technologies and communications, and become an engine of innovation and technological modernisation in Azerbaijan’s İCT industry.

Education of Online Dangers Trumps Enforcement in Middle East,

Education of Online Dangers Trumps Enforcement in Middle East,

Educating parents and children about the dangers that exist online is more important than having law enforcement police the Internet, a top official in Egypt’s Ministry of Communications and Information Technology told Government Video.

Dr. Hoda Baraka, the first deputy to Egypt’s minister of communications and information technology, said educating families is currently more important than enforcement because children who are contacted online by pedophiles do not know the adult is violating the law. “They (children) don’t know this is criminal.”

So, educating parents and children of the dangers online can prevent a problem from occurring, said Baraka, who was a speaker at the Family Online Safety Institute’s annual conference held in Washington, D.C. on Nov. 9 and 10. However, to help parents if a problem occurs, Egypt has established a dedicated hotline where parents can turn to for help, she said. It was not until after the hotline was created, that the “frame work for enforcement” was put in place, said Baraka, who was on a panel about online safety and “Lessons Learned in the Middle East.”

In addition, Rob Middlehurst, deputy general director for Bahrain’s Telecommunications Regulatory Authority, said Bahrain’s population of just over a million is “highly connected” on the Internet, but the knowledge of dangers lurking online “are not being addressed” by families. “Imagine a society where everything is done by family. In such a close society, lots of things are known about, but not necessarily talked about openly, so people are aware of issues, but they don’t really know about issues,” he said.

Because Bahrain’s economic future is linked to the Internet, officials are trying to “change that condition,” and get people to think about the dangers online, rather than treating is as “a great taboo” where such issues are not discussed, Middlehurst said. Bahrain is different from other Middle Eastern countries in that it does not have huge oil reserves—and the wealth that goes with such reserves—like Saudi Arabia, so it recognizes the need to have good trade relationships.

An economy heavily dependent on trade is going to require a “rich environment” of “information and communications technology” (ICT), Middlehurst said. That means connectivity, international links, and “an environment where people know how to use ICT well,” he said. However, “at the same time we give everyone access to the Internet,” there are issues they need to be made aware of. “It’s not just about how we use it (the Internet), it’s where we use it and what we use it for.”

The economic future of Egypt, with a population of 80 million, is also becoming dependent on the Internet, Baraka said. Therefore, Egypt has established a national program that is focused on educating 17 million students in 40,000 schools, not only about online dangers, but also proper use of the Internet. “It’s not about technology, it’s about learning and empowering our young people to compete globally,” she said. Students need that education because “without these advanced technologies, our young people will not find any opportunity for the job market,” she added.

However, Middlehurst—who is British—said caution and an understanding of cultural differences is very important in the Middle East. “You have to take those into consideration as an ‘X factor’ in that environment, because if you don’t and it fails, all the good will you might have had is thrown away and it’s very difficult to get it back,” he said. Therefore, even though the penetration of ICT is moving fast into that part of the world, “you don’t do things rapidly in the Middle East.”

Vodafone to increase outsourcing to Egypt

Vodafone to increase outsourcing to Egypt

Vodafone CEO Vittorio Colao has met with Egypt's Minister of Communications and Information Technology (MCIT), Tarek Kamel, on increasing the company's investments in Egypt, the ministry announced. Vodafone International Services signed three cooperation agreements with the Information Technology Industry Development Agency (ITIDA) on offshoring customer and ICT services to Egypt. The ITIDA will provide investment incentives for Vodafone to increase its outsourcing to Egypt. Vodafone is expected to double staff at its Egyptian customer centre serving clients in the UK, Germany, New Zealand and Qatar. The company will also add 230 new specialists at its ICT centre which provides hosting, software development and other ICT services for Vodafone in Germany and other areas of the world. Vodafone will also set up a new R&D centre in Egypt with 100 staff working for Vodafone Global Enterprise.

Egypt boasts 60.2 mln mobile subscribers

Egypt boasts 60.2 mln mobile subscribers

(Daily News Egypt Via Acquire Media NewsEdge) CAIRO: The number of mobile subscribers in Egypt reached 60.2 million at the end of August, according to the latest statistics from the Ministry of Communications and Information Technology, an increase of 20.3 percent over the past year.

Mohamed Hamdy, associate director of the research department and telecom specialist at CI Capital, expects the mobile market to see even more growth despite talk of saturation.

Hamdy said CI Capital expects the mobile market to reach 100 percent penetration or 82 million subscriptions in 2013, driven by the multi-SIM phenomenon, or more than one line per user.

"We consider the market is now getting closer to the saturation phase, but saturation does not mean 'no growth' in the market," he explained.

Acknowledging the eventual saturation of the market, Hamdy said that mobile operators are planning to minimize the effects of market saturation by stimulating average revenue per user (ARPU) and subscription growth by offering value-added services such as mobile banking.

Acknowledging the eventual saturation of the market, Hamdy said that mobile operators are planning to minimize the effects of market saturation by stimulating average revenue per user (ARPU) and subscription growth by offering value-added services such as mobile banking.

"Companies [also] offer free or cheap handsets through bundles (phone + line) to low-income segments and governorates in an attempt to maintain subs growth," he added.

While mobile subscriptions are on the rise, the number of fixed-lines continues to decline with total subscribers decreasing by approximately 5 percent, bringing the number to 9.9 million subscribers.

"Normally, fixed telephone lines are declining due to fixed-mobile conversion (FMC). Mobile companies are competing in offering free and less-expensive minutes, approaching to the fixed-line minute cost of LE 0.03." Hamdy said the downtrend is expected to continue unless the triple-play services (voice, data and TV) come into the market.

Hamdy previously told daily news Egypt that the potential lies in Mobile Virtual Network Operator (MVNO) licenses, which the Telecom Ministry plans to issue, allowing Telecom Egypt, Egypt's only fixed line provider, to increase the penetration of fixed lines by bundling them with other services.

Government statistics show that the number of internet subscribers in Egypt rose to 22.1 million subscribers, an increase of 43 percent compared to the same period last year.

Hamdy attributes this to the fact that the penetration rate of internet users is still at a low level of around 15 percent.

"We believe there is a large room for internet growth in Egypt. Internet subscriptions will likely continue in delivering double-digit growth at least for the next five years," he said.

(c) 2009 Daily NewsEgypt Provided by Syndigate.info an Albawaba.com company

The face of the Egyptian digital tide | Al-Masry Al-Youm: Today's News from Egypt

The face of the Egyptian digital tide | Al-Masry Al-Youm: Today's News from Egypt



The digital boom is sweeping Egypt and effectively reshaping the economic and cultural identity of the nation. Various challenges remain but Egypt seems set on an irrevocable path toward digital embrace.

Digital media pervades nearly all facets of life today. The Internet is used for both social and professional purposes.

Con O’Donnell, co-founder and managing director of the digital media and marketing pioneer, Sarmady Communications, said that Internet usage and digital media are indispensable components to any business model today.

"People are no longer asking 'Should I spend money on digital marketing?'" O'Donnell told Al-Masry Al-Youm. "They are asking now about where should I spend and how much."

The total number on Internet users in Egypt has increased from 14.9 million at the end of the second quarter of 2009 to 19.7 million at the same juncture in 2010, according to the Egyptian Ministry of Communications and Information Technology. That's a growth rate of an astounding 32.3%.

Managing Director of Emerging Markets – Nielsen Online, Diego Semprύn, said those figures represent Egypt's path toward becoming a competitively "connected" society. "I think it's going to reach the worldwide average level," said Semprύn during the “Digital Boom” Conference which was organized last month to discuss the prospects and challenges of digital media in Egypt.

However, precise information on the nature of Internet users--utilized by companies to target potential consumers in advertising and marketing campaigns--is lacking, said Managing Director for UM Cairo Dina Hashem.

"Facebook is everywhere in Egypt but we don't know about the habits and trends of those users," said Hashem. "We need to know what the advertisements are that would attract such users."

Semprύn said that "online ads are quite effective in changing consumer behaviors; however steps still need to be taken from the advertiser's side to actually engage more of their budgets."

Online advertising represents just 1% of total spending in the region, but is expected to become "the fastest growing media sector over the coming years," according to the latest annual report by Dubai Press Club. Online advertising accounted for 12% of total global advertising expenditures in 2009 and is forecasted to reach 18% by 2013.

Google Marketing Manager in the Middle East and North Africa region, Wael Ghoneim, said this region spent US$100 million on online advertising in 2009 compared to US$8 billion in total advertising expenditures.

But that miniscule percentage appeared poised to change. In recent years digital media has spread throughout banking, finance and real estate sectors and greater focus on digital advertising is likely to follow, said Karim Khalifa, CEO and co-founder of Digital Republic, an innovative Digital Advertising Agency based in Cairo and Dubai.

“This new media is highly effective in terms of targeting, interactivity, entertainment, and it also talks to a very wide audience," explained Khalifa.

Mobinil and Coca-Cola are examples of companies that have profited substantially from incorporating social media into their marketing strategies.

Speaking about what he described as a major success story, Omar Mandour, General Manager at Coca-Cola for Egypt, Libya, and Sudan, said social media has enabled his company to effectively reach consumers—the younger generation in particular—in an unprecedented way.

"What we had in the past is a traditional media message from the advertiser to the consumer," said Mandour. "Now, thanks to social media, we have an interactive relationship with our consumers where we can get their feedback in a fast, direct and effective way."

Mandour said this approach cultivates the fertile ground of future consumption. “Digital media has enabled us to set a long term plan aims at building up a strategic relationship with teens who will lead the consumers market."

Coca-Cola launched a Youtube channel in December 2009 that has since landed four million views. Mandour said advertising through social media also allows a company to avoid burdensome requirements imposed by TV channels.

But obstacles remain. Nielson's Semprion explained the challenges are centered on building and engaging content, instilling the intended message into an audience, and financing digital media usage.

Sarmady's O’Donnell offers another challenge. He said a disconnection exists between companies and advertisers because of the esoteric terminology used in the digital media advertising world. This makes companies reluctant to explore digital media, according to O'Donnell.

Despite this challenge, he said digital media advertising is of grave importance and laying the groundwork for a long-term strategy is vital.

"Coming with a budget is not enough, you should have to think about long term engagement where you can learn and adapt in an evolving process," O'Donnell added. "You are going to make mistakes but you will later manage and willing to make changes that will make you gain 100 times over your competitors."

O’Donnell believes digital media in advertising will thrive and, as a result, severely detriment traditional media.

"I do think that the series fever during Ramadan is not going to happen again. What has been done is wasting money and fragmentation of the audience. TV in a nutshell will suffer," said O’Donnell.

The newspaper industry will suffer as well, according O’Donnell, unless “they are smart enough to have a very clever digital strategy that they will transfer.”

Digital Republic's Khalifa argues that digital media will not comprehensively substitute traditional media. "New" and "old" media, according to Khalifa, will need to work together in the future.

Google's Ghoneim disagreed, saying digital media poses a real threat to traditional media because "what is popular in traditional media is not necessarily popular in digital media."

Egypt Continues IT Outsourcing Push | CIO - Blogs and Discussion

Egypt Continues IT Outsourcing Push | CIO - Blogs and Discussion

The Middle Eastern country renews its efforts to build up its IT outsourcing industry.

Posted by: Beth Bacheldor in News
Topic: Applications
Blog: Inside IT Outsourcing


As many of you know, India isn’t the only foreign game in town when it comes to building and growing an IT outsourcing industry. I’ve written about China, Vietnam and Egypt (you can read about those here and here). I’ve even written about Latin America in this blog (and expect to more on that in a few days, when I share with you some of the highlights of the conversation I had with TCS about its expansion into Latin America).

Anyway, Egypt continues to push for its share of the IT outsourcing market. According to this article from the Associated Press, the country is aiming for a tenfold increase in exports from its growing outsourcing industry by 2020. To get there, Egypt is focusing on boosting its IT entrepreneurship and co-ownership of intellectual property, according to the country’s IT minister Tarkek Kamel, who reportedly spoke at an investment conference in Cairo. Kamel said the IT outsourcing sector has brought in almost $1.1 billion in exports this year, and officials are estimating an increase to $10 billion by the end of the decade.

Apparently, outsourcing, call centers and other support services were creating about 40,000 jobs per year. But Egypt wants to go beyond the call center into higher-value IT services. Kamel pointed to Egypt's new Center for Innovation and Entrepreneurship. The new center is designed to stimulate plans for developing IT in Egypt carried out by Ministry of Communication and Information Technology (MCIT) in cooperation with other ministries and agencies.

Kamel also mentioned a pilot project with IBM on nanotechnology. Indeed, IBM has been working with the Egyptian government on a nanotechnology research center in Cairo. At the center, Egyptian scientists and engineers are working with IBM scientists and engineers on advanced nanoscience and nanotechnology programs. (By the way, back in 2008 IBM opened a service delivery center in Egypt, which provides business consulting, cross-industry expertise, application development and maintenance, software testing and embedded software development services).

To grow its IT outsourcing industry will require foreign investment in Egypt’s burgeoning economy. The populous country’s goals are big: it hopes to attract direct foreign investments of between $12-15 billion per year. Egypt acknowledges it need to build up its economy in order to meet the needs of its 80 million citizens and demands for more jobs.

The push for new revenue comes as Egyptian officials project economic growth could reach at least 6 percent this year, and inch up slightly higher in the coming year, according to the AP article.

Dr. Kamel Announces Launching the Innovation and Entrepreneurship Center in Smart Village

Minister of Communications and Information Technology Dr. Tarek Kamel announced the launch of Innovation and Entrepreneurship Center (IEC) at the Smart Village.

Viewed as a technological and civilization leap for Egypt, the center is likely to position the country on the world's technological innovation and creativity map over the coming period.

Minister Kamel stated that launching the center was a step on the way towards enhancing and stimulating plans for developing IT in Egypt carried out by Ministry of Communication and Information Technology (MCIT) in cooperation with other ministries and agencies.

Establishing the center had been entrusted by Prime Minister Dr. Ahmed Nazif during a meeting with the sector's stakeholders.

Dr. Kamel also announced the formation of the center’s Board of Trustees chaired by him.

Dr. Tarek Al-Saadany has been selected to hold the post of the Executive Director and Board Rapporteur.

The board members include Chairman of Academy of Scientific Research and Technology Professor Maged Al-Sherbini, First Assistant to Minister of Communications and IT Dr. Hoda Baraka, also Chairperson of the Information Technology Industry Development Agency (ITIDA), per se, Chairman of the Vodafone Data Engineer Omar Al-Sheikh, Chairman of Safari Ventures Mr. Ahmed Al-Alfi and ITIDA board member Mr. Amin Khair-Eddin.

The board of trustees also includes CEO of Si-Ware Systems (SIS) Hisham Haddara, Intel General Manager for the Middle East, Turkey and North Africa Mr. Khalid Al-Amrawi, Microsoft Research Director for Europe and the Middle East Dr. Tarek Al-Abbadi, EMC Director General and Deputy Chairman for Africa, the Middle East and Turkey Eng. Mohammed Amin, Google’s Managing Director for Southern and Eastern Europe, Africa and the Middle East Eng. Mohammed Gawdat, Managing Director of OTVentures, an affiliate of Orascom Telecom, Eng. Hanan Abdel-Meguid and Professor at the Imperial College, London, Moustafa Ghanem, also Co-Director of the Center for Informatics Science at Nile University

.

Minister Kamel noted that the center aims at promoting the structure of technological innovation as well as the culture of entrepreneurship among a segment of young people in IT and its applications.

Other purposes of the project include teaching young calibers the importance of innovation and creativity as two basic factors in a strategy that aims for the added value of the Egyptian economy.

The project will help create high-level job opportunities for the Egypt's professionals and qualified graduates to work in various specializations of the sector.

Dr. Kamel added that the center also aims to boost Egypt's position as an innovation and entrepreneurship hub that would attract the world's attention, making use of the country's competitive advantages for drawing up the technological creativity and entrepreneurship strategy for the communications and IT sector.

The center will operate within the framework of the public-private partnerships as adopted by Ministry of Communications and Information Technology (MCIT). It will also coordinate the creativity efforts in the field of IT between the Government and the private sector, universities and the research institutes and academies. The coordination of these efforts is based on focusing on creative capabilities.

 In addition, the center will pay great attention to encouraging the Egyptian small and medium-size enterprises (SMEs) to adopt the culture of technological innovation as a major component in their administrative systems with an emphasis on making the most of the creative elements to boost the added-value of the Egyptian IT exports.

The focus on the added value of the IT industry in Egypt is a major target of MCIT to increase the country's IT exports of both products and services.

The center’s executive director Dr. Tarek El-Saadany pointed out that the new project would create an enabling environment for developing and managing intellectual property within the framework of innovation in the IT sector as well as setting mechanisms for discovering creative and outstanding people to join promising companies.

Stimulating an economy based on creativity and entrepreneurship comes on top of the priorities of the center for increasing the added value of the Egyptian economy and managing intellectual property through focusing on achieving economic revenues reflected on the society as a whole in addition to luring investments by multinational companies operating in IT added-value specializations.

A budget of LE 50 million (US$8.7 million) of the IT sector resources for the current fiscal year till June 2011 have been allocated for the project to be doubled if necessary.

One and one with Telecom Minister Tarek Kamel

One and one with Telecom Minister Tarek Kamel

By Richard Banks September 28, 2010, 11:31 am

CAIRO: Ahead of the Euromoney Conference that kicks off Tuesday, its director Richard Banks sat down with Minister of Communications and Information Technology Tarek Kamel to discuss the booming Egyptian sector. Banks, the director of the Euromoney Conferences for the MENA region, quizzed the minister on the dynamics of the ICT sector, its positioning within the global landscape and its development. Richard Banks: In the last decade, globally the ICT (Information and Communication Technologies) sector has ridden two cycles of boom and bust — first the dot-com era and then the credit super-bubble. Is boom and bust built-in to ICT more than other industries? Minister Tarek Kamel: I don’t think so. I believe that the global ICT sector was quite resilient during the financial crisis and was able to overcome it. The global ICT vendors have to now have a futuristic look: working on challenges that are customer-centered, introducing new services and products that have an economic return and similarly achieving return from rising data traffic, and making sure that value is created through off-shoring and out-sourcing for the benefit of the ICT global market. Thankfully, Egypt was not affected much by either of the dot-com or credit super-bubbles. The ICT sector has proven its strength through its support to the general economy over the last period by maintaining a growth rate of 13-14 percent throughout the last few years. How has the global ICT investment landscape in the sector changed in the last year? It is not really change, but rather a natural development and more of catering to long-term objectives and challenges. I believe major global investments have been geared towards R&D and innovation in specific fields such as cyber security, cloud computing, green ICT, Nano technology, and 4G technologies and applications. Other types of growing investments are targeted to support the demand and need for applications of social media, content, and mobility. Similarly, a number of mergers and acquisitions took place which should have a positive impact on the global market. What does this change mean for Egypt? Opportunity. Our 2011-2014 Strategy has a clear objective of developing a niche in innovation and entrepreneurship. Indeed we are pleased that our strategy fits well within current global trends. We see unique opportunities for our sector to export to the region, cater to 300 million Arabic speakers, provide more job opportunities for the new generation, and much more. Egypt’s ICT sector has proven throughout the last decade its capacity to lead the region into the digital future. Here I would like to note our successful experience: Global ICT players partnering with the Egyptian government were able to fulfill their plans for Egypt despite the global financial crisis. The commitments ranged from investing in establishing delivery centers to innovation and R&D centers, to setting up new operations and offices in Egypt. The result was always positive. Further business has been generated. Renewed commitments from existing investors have attracted new ones, who enjoy the enabling environment of doing ICT business in Egypt. On another note, Egypt has set a target for 2010 to reach $1.1 billion in exports of IT and IT-enabled services. After achieving this target, the goal is to reach $2 billion by 2013. And, as previously mentioned, we maintained the annual growth rate despite turbulences in the global economy. ICT is often a force for “streamlining” and “efficiency gains” — which means making people unemployed. How do you balance that force against the need for the government to provide jobs? The ICT sector was able to inject into the business community a great number of working opportunities for ICT-related jobs. Fortunately, the out-sourcing and off-shoring industry is human intensive. The type of jobs has developed, and a new base of qualified youth and business opportunities was created. We are able to commit to a continuous supply of competent human capacity through our various qualifying and development programs. We run 25 human capacity development programs in ICTs and related fields. This objective is very clear within our strategy: to contribute to the fulfillment of the employment component of [President Mubarak's] presidential program. If we take the newly inaugurated technology zone, the Cairo Call Center Park in Maadi, it is expected that by its completion in 2014-2015 it will offer 40,000 direct ICT work opportunities and 100,000 indirect work opportunities such as support services and so forth. The zone was inaugurated by President Mubarak last June. Is Egypt really just leveraging a low-cost workforce in its out-sourcing business or is it creating sustainable, high value employment? In our out-sourcing strategy we built our competitive advantage on several fronts, the key component being the skilled workforce. To sustain the supply of skilled individuals needed for a growing ICT Industry, we made sure such a workforce offers the world strong language capabilities, a mastering of soft skills, accent-free communication services, and expertise in technical capacities. As mentioned above, Egypt implements more than 25 capacity-building programs and even supports neighboring countries and efforts in Africa. The actual expertise and business range far beyond call center and basic BPO/KPO activity. An example of our proven track record is in areas such as remote infrastructure management, package implementation, technical support, engineering and R&D, testing, and application development. Skilled individuals are fundamental to developing the innovative and competitive capacity of local ICT companies serving the EMEA region. This requires strong, human resources with technical as well as business and commercial skills. Egypt’s talent pool is being qualified and offered on the market professionally by globally known Egyptian institutions such as the National Telecom Institute, the Information Technology Institute, the E-Learning Competence Center, and companies through the Software Engineering Competence Center which provide Capability Maturity Model and Capability Maturity Model Integrated services to local software companies while offering them technical and financial support to help them achieve Level 2 and 3 CMMI accreditation. Moreover, Nile University, a high-tech, not-for-profit research and development institution is offering specializations in engineering and management of technology and business administration, as well as research opportunities in specific fields of current focus such as Nano technologies. All our human capacity initiatives are conducted in partnership with global ICT technology innovators or professional training consultants. I would like to end my statement by saying that leading consultancy firms and global ICT and business reports have confirmed Egypt’s unique position in the O&O industry and recommend it as the preferred destination for conducting O&O business. SMEs are all the rage — how should the MCIT be encouraging them? SMEs constitute the core of the business sector in Egypt. Therefore, special modernization schemes — such as automation — are being implemented, cross-cutting the business community. Building on this potential, SMEs that heavily use ICTs in their daily business and start-ups that are ICT by nature are encouraged and supported by various means, such as the Business Plan Competition, venture capital fund, and incubation packages which cover various areas of support such as international and local marketing, management, skilled manpower, and legal and facility development. MCIT also encourages building the capacity of local ICT SMEs, providing them with accreditation as well as financial support programs, expanding incubation initiatives, widening the outreach of the Entrepreneurial Business Development Center (EBDC) to help growing IT firms satisfy the requirements of investors and financial institutions, and assisting in promoting the Egyptian IT industry in the global market. Should the MCIT be a financial investor? How does the MCIT balance investment returns with social and business development? MCIT is a government body responsible for policy development and strategy implementation. It makes sure that it works on various incentive schemes to attract FDI into the sector. MCIT aims that the ICT sector, through its successful developmental initiatives, leads other sectors of the economy. The ICT sector in Egypt has been successful in generating income and funds serving other sectors in addition to the public treasury, supporting the fulfillment of the socio-economic development agenda of Egypt. Here I would like to emphasize that during the financial crisis, stimulus packages and specific funds were injected into the local ICT community to support infrastructure projects in IT ad to help increase the local demand on ICT products and services. On another note, IT Industry Development Agency (ITIDA) supports other industries and academia through a number of programs and initiatives related to innovation, entrepreneurship and O&O with specific incentive packages. Over the last two years Egypt became attractive to many multinationals as a venue of O&O services. These include BPO and ITO deals with IBM, Vodafone, Sutherland, Sykes, Stream, EMC2, SQS, and Oracle. Those companies enjoyed the benefits of incentive packages formulated by ITIDA. Similarly, investors found Egypt a fertile ground for emerging engineering and R&D services. For example, Mentor Graphics, Valeo, Microsoft, Orange, and IBM all have labs and design centers here. The attraction of Egypt came by promoting the enabling environment for O&O: our abundant human capital, extensive and modern ICT infrastructure, competitive telecom prices, stable political, social and economic environment, the enforcement of the law, as well as a growing culture for respecting IPRs. Do we need more Smart Villages? Who will pay for them? The Smart Village in Sixth of October City is a model; it is Egypt’s first technology park. We have invested in its infrastructure, buildings, services and capacities. Today we offer other technology zones in other parts of Egypt, such as the Cairo Call Center Park in Maadi that started its operations last June. Similar initiatives are starting to sprout in areas such as Assiut, Damietta, and Alexandria. Public-private partnership has been our strategy since the establishment of the ministry in 2000. The ICT industry — with its multi-stakeholder players — has been taking part and has been engaging in mega-projects like Smart Village (and many others) that develop and empower the industry/sector. What three things can Egypt do to become more competitive? Our plan is to invest in human resource capacities, maintain state-of-the-art telecom and IT infrastructure, develop a niche in innovation and entrepreneurship, and to produce IPRs out of Egypt. Our core competitiveness will lie in our specialization. Egypt has been well known for its achievements in Arab-ization and localization. We are continuing our efforts in this area and proving international success while receiving global recognition. Will these things be done? Of course, those goals are core in our national plan/strategy. Our 2011-2014 strategy focuses primarily on embracing innovation. Several initiatives and projects are currently underway, some of which standout — such as the center of excellence in nano technology created in partnership with Nile University, Cairo University, and IBM —which focus on developing research in specific areas like solar energy or water desalination. Richard Banks is the Middle East director of Euromoney Conferences. This article is published by Daily News Egypt in collaboration with Euromoney Conferences.