Tuesday, February 21, 2017

Connecting Egyptians with tech jobs [from Business Monthly and Zawya]

By Tamer Hafez 

Starting in 2003, when Xceed Call Center launched Egypt’s call service industry in Smart Village, a sleek new business park on the outskirts of Cairo, fresh university graduates looking to kick-start a career in tech—or just find a job—manned phones in the country’s fast-growing outsourcing sector. The work ranged from taking fast-food orders to providing emergency tech support for multinational companies, with call center employees earning anywhere from a few hundred to a few thousand pounds a month—with the more skilled positions paying three times as much as new entrants to the workforce might hope to make in other sectors. Ahmed Saeed, who was among this early crop of young call center agents, saw the opportunity in this growing new sector and parlayed the experience into opening his own business. Now 39, Saeed is the owner of a service that provides training for call center employees.

With a prime location at the locus of three continents and a cheap, plentiful workforce, Egypt saw the potential of this growing industry to boost its economy and provide badly needed jobs for young people—following in the footsteps of India, the global leader in so-called outsourcing. Dozens of call centers opened in Egypt after Xceed paved the way, growing some 30 to 50 percent by 2008, and by 2011, the country was named the fourth-best destination for call centers by A.T. Kearney Global Services Location Index. However, the January 25 revolution—during which the government temporarily cut mobile and internet service—greatly spooked multinational firms that had contracts with local call centers, particularly after the months of instability that followed. According to data from the Ministry of Communications and Information Technology, the number of new job postings in the call center industry dropped from more than 5,000 in fiscal 2008/09 to half that in the years following the uprising. Egypt is now ranked the 16th best location for call centers worldwide, though it’s still number one in the Middle East and North Africa region.

In recent months, the government has stepped up its ongoing efforts to transform Egypt into a technology hub, seeking to attract not just call centers but tech-related research and development and manufacturing as well. A proposed investment law meant to overhaul Egypt’s business climate calls for “free tech zones,” to attract ICT firms by promising them tax-free status on everything from machinery to imports. The Ministry of Communications and Information Technology is also pushing a multi-pronged strategy to lure more of these firms to Egypt by creating specialized tech zones outside of the capital to house call centers, R&D firms and factories that make electronic devices and components. In November, at the Cairo ICT conference, President Abdel Fattah el-Sisi unveiled an approximately LE 100-billion fund to support new and existing tech companies. 

Not only is outsourcing a rapidly growing industry with lots of potential jobs for young people, according to the government’s rationale—call centers can be established anywhere, offering a way to create employment in remote parts of the country. In Egypt, the vast majority of the population is currently crowded into the Nile Valley. 

In December 2015, Minister of Communication and Information Technology Yasser el Kady announced that the Information Technology Industry Development Authority, with the help of consultant Ernst & Young, was assessing the economic feasibility of seven zones with gated business parks suited to tech firms. “We will not stop at smart buildings and providing innovation centers,” Kady told the media, pointing out that fully serviced and integrated zones would pave the way for an ICT sector boom in Egypt. To that end, Silicon Waha, a joint venture between ITIDA, the Information Technology Industry Development Authority, and the New Urban Communities Authority, is currently working with Wadi el Nile Developments to build a 41-feddan tech zone in Assiut and a 30-feddan zone in Borg el Arab, with a total investment of around LE 400 million. Speaking to the press last month, Kady said that eight tech companies would be up and running in the two zones by the end of 2017. 

“We are currently looking at both zones,” says Mohamed Ismail, the regional director for development at Transmission Holdings, a company that builds mobile phones. “Our criteria is logistics and the size of the plots on offer.” Ismail aims to have a prototype 4G-capable smartphone before the end of the year and be manufacturing 6 million phones, tablets and mini-laptops annually by 2020. Silicon Waha has also signed MoUs with Samsung, Huawei and ZTE to manufacture ADSL equipment, routers and modems in the new tech zones.

The ministry also has plans to establish other similar tech zones in Sadat City (50 feddans), Beni Sueif (100 feddans), New Aswan (40 feddans), 10 Ramadan City (85 feddans) and Ismailia (100 feddans) at an estimated price tag of LE 24 billion. Mohamed Abdel Wahab, an aide to the Minister of CIT for tech zones, was quoted last month as saying the government would charge $9 to $10 per square meter. “This is a competitive rate,” he said. Each zone will eventually have a board of directors that oversees operators and enforces regulations.

As an added incentive for developers and tech companies to set up shop here, Minister of Investment Dalia Khorshid said that the draft investment law currently before Parliament has proposed that such companies manufacturing goods for export and servicing foreign clients remain exempt from tariffs. “Our aim is to increase the amount of investments in the tech industry to $3 billion and provide an additional half a million more jobs by the end of 2020,” Khorshid said in January, following the Cabinet’s approval of the most recent version of the law. 

ITIDA is managing the fund the president unveiled in November. It includes LE 50 million in subsidies specifically earmarked for new tech-hardware manufacturers that make devices such as mobile phones and tablets or components like circuit boards or chips. Companies with capital of at least LE 10 million can apply for up to 30 percent of their capital expenditures on equipment to be paid for by the government, provided that 40 percent of their purchasing budgets are earmarked for locally made machines and components. The fund will cover an additional 10 percent of equipment expenditures if a company exports at least 25 percent of its goods. The fund also offers support for existing tech firms that use local inputs—and even more for those that export at least a percentage of their final goods. It also aims to support employee training, offering even more for enterprises whose work forces are at least one-quarter female.  

Even though these funds have not officially launched, new investors are already factoring them into their investment decisions. “We are looking at which of these incentives would suit our business model,” says Mohamed Salem, CEO of Sico Technology, a hardware firm that’s building a LE 100-million mobile phone factory in the Assiut tech zone. Ahmed Kandil, the exclusive local dealer for Xtouch, a Chinese electronics brand that makes smartphones and other devices, has long-term plans to partner with an Egyptian factory to build various Xtouch phones and tablets. “We are still only a few months in the market, but we see great potential with these initiatives,” says Kandil. “At this stage, partnerships will work very well with us.” 

MCIT’s goal is to boost Egypt’s ICT exports to $2.5 billion by the end of fiscal 2017/18, up from $1.8 billion in fiscal 2015/16. Officials are hoping these measures will help create jobs for the millions of youth who need them. Unemployment, a chronic problem, has only gotten worse in recent years, especially among the young and educated, with 42 percent of Egyptian youth between 15 and 24 jobless, according to the International Labor Organization, compared to 12.5 percent of the general population. In the last academic year, some 500,000 tech-trained young people graduated from Egyptian universities, according to the Ministry of Higher Education. Since the rise of tech parks in the early 2000s, the government says it is also trying to integrate more ICT skills into the basic curriculum as well as offering post-graduate courses through the state-owned Information Technology Institute, the Software Engineering Competence Center and the National Telecom Institute. Meanwhile, the ICT ministry has authorized training centers to offer an International Computer Driving License in cooperation with UNESCO.

While Egyptian university students remain fixated on the traditional prestige professions of medicine and engineering, an increasing number of youth are drawn to the tech industry. Tamer Hassan is a senior at Cairo University’s Faculty of Computer Science and Engineering who would happily accept an entry-level job at a call center, even if it meant working night shifts or 12-hour workdays. Over the summer break, he interned answering phones at a call center. “I have established very good relations with my future employer,” he says. “This is why I think my first step is to work at a call center and see where it takes me.”

Another student, Hadya Yassin, is studying electronic hardware design. Recently, she’s been learning how to design circuit boards, and she hopes to parlay this into a factory job upon earning her diploma. While some might see working on an electronics assembly-line or answering phones as menial, Yassin proundly points to her elder sister, who took an outsourcing job upon her graduation from university back in 2005 and now has a good job managing one of the country’s largest call centers. “It is always better from a career perspective to work in a new industry,” declares Yassin. 

Othman Lotfy, a computer science professor at Cairo University, says that students who can speak a foreign language have an edge in landing jobs at Egypt’s call centers, which cater to callers across Europe as well as in places like Russia and Latin America. In recent years, the ICT ministry has organized job fairs at the university, big employers like IBM and Microsoft search for recruits among the soon-to-graduate.

As of 2014, the most recent year statistics are available, Egypt’s ICT sector employs 800,000 to 1 million people, according to officials. Even the Egyptian government now employs call centers, with the Ministry of Electricity outsourcing its customer service operations since 2016. Currently, call centers field calls from customers in southern Cairo, but eventually they will serve all of Cairo and Alexandria. The growing popularity of delivery services in the cities has also created call center jobs. “Those call center positions only require a basic education and good Arabic pronunciation along with the most basic computer skills,” says Lotfy.

Said Riad, head of the commercial sector at Wasla Outsourcing, a call center with offices around Cairo, agrees that the ICT sector is indeed growing again but that it will ultimately need more than just infrastructure in order to provide good, viable long-term employment for more Egyptians and deliver equitable growth. Workers need access to affordable public transit to get to work, among other things. “Youngsters are still not so desperate that they’ll be willing to work in the middle of nowhere,” says Riad.

© Business Monthly 2017

Thursday, January 12, 2017

GSMA Celebrates 4G Launch in Egypt and Commends the Government’s Commitment to Release More Spectrum in 2017



LONDON--(BUSINESS WIRE)--
The GSMA welcomes the successful launch of 4G services by mobile operators in Egypt, and believes that Egypt’s leadership in 4G will serve as catalyst for economic growth and deliver broad societal benefits.
During a recent visit to Egypt, the GSMA’s Director General Mats Granryd attended the CAIRO ICT Forum and engaged with leaders from the mobile operators and other Egyptian ICT companies. The GSMA found widespread industry support for the Government’s plans to release more spectrum in 2017, which were announced by HE Eng. Yasser ElKady and will further enhance the newly launched 4G services, allowing all mobile operators to offer quality 4G services to the people of Egypt.
“The GSMA is very pleased with the successful launch of 4G services in Egypt and we stand ready to engage with all stakeholders in Egypt to ensure continued success and growth of the Egyptian mobile economy. Having lived and worked in Egypt for several years, I feel confident that the launch of 4G will prove to be a key milestone for the country,” commented Granryd.
The International Telecommunication Union emphasises that abundant spectrum is essential to promoting competition and innovation in telecommunications markets.1 The Government’s plan to release more spectrum in 2017 can help ensure that sufficient spectrum is available for the delivery of high quality, competitive 4G services and to incentivise further investments in 4G networks.
John Giusti, the GSMA’s Chief Regulatory Officer noted: “In looking at other successful launches of 4G services, the total amount of spectrum assigned to each operator for 4G should be in the range of 2x30MHz to 2x60MHz, across a range of coverage and capacity bands, with a minimum contiguous bandwidth of 2x10MHz in each band. The GSMA looks forward to working with the Egyptian government as it plans the release of more mobile spectrum this year, so that mobile operators can extend 4G services and drive further socio-economic benefits for all Egyptian citizens.”
-ENDS-
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with almost 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170110005042/en/

Wednesday, January 4, 2017

Assiut Technology Park hosts job fair for Upper Egypt youth

The event is offering 450 job opportunities in the fields of communication and information technology
Assiut Technology Park, located in New Assiut city, will host the first job fair on Wednesday which will provide about 450 job opportunities for young people in the field of information technology in the Assiut province.

The job fair is organised by Egyptian Information, Telecommunications, Electronics, and Software Alliance (EITESAL) and is held under the auspices of Information Technology Industry Development Agency (ITIDA) and Silicon Waha. More than 12 specialised technological companies will offer a variety of employment opportunities in the field of information and communication technology, including technical support, network maintenance, website design, software and applications development as well as outsourcing and customer services. The companies will also offer job opportunities in marketing, sales, and human resources.

About 1,300 young graduates applied for the job fair, of whom 70% are residents of Assiut and the rest are from neighbouring provinces in Upper Egypt.
Minister of Communications and Information Technology Yasser ElKady inaugurated in November the first phase of the Borg El-Arab and Assiut technology parks in the framework of the national project to create technological zones all over the country. These projects aim to reduce internal migration by providing direct and indirect job opportunities for Egyptian youths. 
The technological zones also provide a competitive operating cost for investors and an adequate investment environment in different governorates, as the government seeks to develop disadvantaged and marginalised areas and provide electronic services for citizens there.

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.