Information and communications technology (ICT) amplifies human ability for the benefit of the economy and the community. Increasingly present in all forms of human activity, ICT is fundamental to the progress of society. Governments around the world are becoming increasingly aware of the strategic value of ICT in economic development. The Government of Egypt (GoE) recognizes the ICT sector as a critical component of the national economy, not only due to its substantial contribution to employment, exports and diversification of the economy, but for its dynamic and innovative potential, and its broader role in providing enabling technologies, products and services that underpin the development of Egypt as a knowledge economy in the global market.
Egypt has successfully mainstreamed ICT as part of its national development strategy over the last decade. The government formulated an ICT Master Plan in 2000 to ensure the effective deployment and use of ICT for the benefit of citizens and enterprises. Comprehensive assessment and review mechanisms were established to analyze the policy challenges and opportunities of ICT for the information economy. This process allowed the country to identify critical success factors and best practices, as well as impediments, in order to adjust and update ICT policies.
Egypt’s telecommunications infrastructure has increased dramatically over the last decade. Fixed telephone lines have shown a steady increase, from 7.5 million in 2000 to almost 11 million in 2007. At the end of 2001, two private mobile operators were servicing 3.4 million mobile users. By the first quarter of 2007, this figure had increased to over 16 million, and a third mobile operator was awarded a license in 2006. The ICT sector has sustained double-digit growth and continues to be one of the fastest growing sectors in the economy.
The Egyptian Information Society Initiative has made great progress in the modernization of ICT infrastructure over the past five years. Solid foundations have been laid for continuing development at a rate Egyptian society can adapt to, gradually closing the digital divide for Egypt’s industries, people and culture to allow the country to move forward as a whole. This, in turn, allowed the establishment of a solid education base that provides all Egyptians with the opportunity to adapt and use ICT developments for themselves.
Emphasis is placed on continuing research and development in the application of ICT in industries to allow Egypt to become and remain a world-class competitor. Progress is seen as no longer dependent on natural resources but rather on creativity and innovation. Research and Development Centers of Excellence have been established to provide an enhanced environment for Egyptian researchers. Each acts as a consortium bringing together professionals, private sector entities and educational establishments for the development of ICT.
Significant efforts have also been made to facilitate access to the Internet and related services in order to allow entrepreneurs and markets to fulfill their potential. The government’s e-access policy seeks to harness the power of ICT in the development of traditional and older industries in Egypt. Companies must be assisted in maximizing their output potential through ICT to increase their competitiveness and create new employment opportunities. Another focus is reaching out to the poorer, rural areas of the country, where ICT furthers the objectives of capacity building in the community. In this context, IT Clubs, of which there are now over 1,500 nationwide managed by partnering local NGOs, continue to be successful as educational and ICT access centers in outlying areas, particularly for women.
MCIT is a keen supporter of capacity-building programs leading Egypt across the digital divide. A wide spectrum of programs has been developed, ranging from basic ICT literacy to advanced and specialized training. These programs have served more than 100,000 people of various skill levels to address market needs.
The promotion of ICT literacy and an entrepreneurial culture, particularly to young people and in academic circles, is essential for the sustainable development of the Egyptian ICT environment. With this in mind, MCIT launched the Egyptian Educational Initiative (EEI), through which it has established infrastructure in 2,000 K-12 schools, upgraded that of the Egyptian universities network and also provided high-speed connectivity to many of these institutions. The initiative has also addressed issues of capacity building for in-service professionals and those under training in aspects of utilizing ICT for education and content development. The capacity-building programs have benefited more than 80,000 trainees at different levels.
With the increase in utilization of ICT within the Egyptian economy, there has been significant growth in the number of Egyptians employed in ICT by both ICT and non-ICT firms. The growth in employment in the Egyptian ICT sector has outstripped the national average, indicating Egypt’s increasing contribution to the knowledge economy. This has resulted in a significant increase in national ICT capabilities, especially in the areas of software and IT services development and export, as well as research and development.
The government recognizes that an open, market-oriented and stable economic environment is necessary in order to build a knowledge-based society. Yet it also sees that economic reforms must be accompanied by a focused and concerted effort that combines the imaginative use of emerging technologies with creative public-private partnerships and multi-stakeholder partnerships to accelerate development. The government maintains a strong and cooperative relationship with multinational ICT companies, and this partnering has seen a catalogue of successes, particularly in the implementation of e-access and innovation programs. Indeed, the ICT sector in Egypt has become a model of success in the use of public-private partnerships, and the GoE remains committed to the use of partnering as a foundation for development.
Working practices and cultures are changing worldwide as ICT technology alters the way we work. Societies need to address issues such as privacy, security and protection of intellectual property, and to face new challenges such as cyber-crime. Adaptable regulatory policies are thus essential, both to cater to a changing market environment and to address the new challenges at this stage of Egypt’s development. Yet in all aspects of development, the government is aware that it must build public confidence in the benefits available for all, such as those offered by new e-government services.
Egypt aims at building an export strategy based on competitiveness, which will attract foreign direct investment (FDI) and allow it to act as a regional hub. A study carried out in 2005 by US management consultant firm A.T. Kearney positioned Egypt number 12 on the global level in terms of competitiveness in outsourced services. This ranking is based on ICT infrastructure, government support, training programs available and the country’s multilingual workforce. Moreover, private sector initiatives are actively encouraged, and the government is maintaining its commitment to provide continued investment in human resources.
One of the principal areas of industry development for the government is creating a framework that will attract multinationals to Egypt, and foster the growth of new ICT industries such as contact centers. A parallel objective is to improve the international competitiveness of existing exporters and companies with export potential to enable them to successfully manage market-led development, production and sales of products and services suited to target segments of selected export markets. Ultimately, this should result in improved export capability, penetration of new markets and increased market share in existing export markets. During the last seven years, LE 30 billion has been invested in ICT companies, and the industry has witnessed growth of 700 percent.
Egypt’s 2010 ICT Strategy consolidates and builds on the progress made to date by the government in partnership with the private sector and civil society. For Egypt, with its unique location at the crossroads of Europe, Africa and the Middle East, and a young population with diverse skills and economic potential, ICT is one of the key drivers of economic development and growth. In the coming pages we share with you our vision for restructuring Egypt’s ICT sector, maximizing the benefits of ICT for development, and nurturing innovation to support industry development, while creating partnerships locally, regionally and globally. Our main priorities are:- To continue development of state-of-the-art ICT infrastructure that provides an enabling environment for government and businesses throughout Egypt and links it globally
- To create a vibrant and export-oriented ICT industry
- To leverage public-private partnerships as an implementation mechanism whenever possible
- To enable society to absorb and benefit from expanding sources of information
- To create a learning community whose members have access to all the resources and information they require regardless of gender and location, thus allowing all to achieve their full potential and play a part in the country’s socioeconomic development
- To support the development of the skills required by the ICT industry
- To support research and innovation in the field of ICT
MCIT is working on achieving its goals through three main tracks:
1. ICT Sector Restructuring
Reform measures undertaken by the GoE have played a key role in improving the outlook for local and foreign investment, as well as instigating and sustaining high levels of growth and employment creation. A policy framework promoting open markets, competition and public-private partnership was successfully put in place to enhance overall efficiency and lay the foundation for the implementation of several related programs and policies. The sound institutional framework that is already in place will bring more deregulation over the years ahead to the benefit of all stakeholders, especially consumers and investors. Strategies to improve regional and international connectivity, foster deployment of broadband technologies, promote convergence services and address cyber security will complement what has been achieved so far.
Analysis has shown that the Egyptian postal market is performing below potential. The government therefore decided to launch a comprehensive program for postal reform and modernization. The program aims at raising the level of postal services offered to all citizens, increasing private sector investment in the postal market and creating a new export-oriented postal service industry in Egypt. This ambitious reform program, being prepared in collaboration with relevant international organizations, will include the creation of an enabling institutional framework in order to facilitate the development of effective postal regulatory policies, laws and functions.
Egypt’s proactive ICT-related investment policies include both financial and non-financial incentives. The establishment of an institutional and legal framework that protects intellectual property rights enabled the country to attract more FDI over the past few years. This trend is expected to continue, and additional innovative incentives will be introduced.
The GoE is resolved to continue its efforts to maintain regulatory policies that make Egypt an attractive investment destination. The successful establishment of the National Telecommunication Regulatory Authority (NTRA) set the foundation for extensive deregulation. Privatization is also encouraging freer markets and introducing new opportunities, the initial public offering (IPO) of Telecom Egypt in 2005 is a case in point. In line with Egypt’s commitments to the World Trade Organization (WTO) there have also been huge reductions in customs tariffs for ICT products. However, building world-class industry in Egypt will not, as is often the case with the modernization of industry, lead to the downsizing and streamlining of companies. It will rather create new employment opportunities, as expansion of the workforce is being achieved through the creation of new and larger markets and capacity building.
2. ICT for Development
In today’s ICT-driven economy, it is not only the technical dimensions of ICT that need to be considered but the social aspects related to education, health, labor markets, intellectual content and other areas.
Egypt’s ongoing strategy to increase e-access, implemented in partnership with the private sector, is providing easy and affordable access to ICT to an increasing segment of the population. The government has also facilitated the emergence of a network of IT Clubs in underserved areas, while new initiatives, such as Egypt PC 2010 – Nation Online, will further increase access and improve the quality of public services.
ICT capacity-building programs have received huge support from the government with a wide spectrum of programs ranging from basic ICT literacy to advanced and specialized training. There is a growing need to ensure that larger segments of the population participate in the digital economy, irrespective of their gender, if Egypt is to take full advantage of ICT. The government will therefore continue to support programs for digital literacy and specialized professional training. In addition, the Egyptian Education Initiative (EEI) will continue as a public-private partnership aimed at developing the skills needed for the knowledge society by enhancing the effective use of ICT at all levels of education and for lifelong learning.
The government has launched a series of e-health initiatives harnessing the power of technology to expand the delivery of medical care and diagnostic services throughout Egypt. The Telemedicine Network, the Health Informatics Programs and the Medical Emergency Call Center are successful technology-based programs that deliver improved healthcare and illustrate the importance of ICT as a tool for reaching underserved areas. Future steps will focus on deploying such programs nationwide as well as reducing the cost and increasing the efficiency of public health services.
Content industries worldwide are migrating to commercial digital applications with varying degrees of success. While games, music, scientific publishing and mobile content industries have very specific and different characteristics, digital content has become the major driver of growth in all these areas. Measures will be taken to ensure the continuing development of a world-class Arabic content industry through partnerships between the government, the private sector and civil society.
3. Innovation and ICT Industry Development
Technology is one of the main reasons for the growing importance of competitiveness. Since new technologies benefit all activities, rapid access to such technologies in the form of new products and knowledge is vital to Egypt’s development. Competitive success in an innovation-driven global economy needs strong local capabilities, the development of which raises numerous market and institutional challenges. In Egypt, as in many other developing countries, the bulk of technological activity is in mastering imported technologies, adapting them to local conditions, improving them and finally using them as a base for creating new technologies. While the previous Egyptian ICT strategy focused on developing a world-class IT and communications infrastructure, its success necessitates a shift of emphasis to continuing research and development in the application of ICTs in traditional and new industries to allow the country to become and remain a world-class competitor.
The government’s approach to ICT industry development is based on facilitating the establishment of effective and strategic partnerships in three key areas:- Inter- and intra-industry partnerships that promote better linkages, alliances, networking and the formation of industry clusters to promote complementary business activity, knowledge sharing and joint ventures
- Partnerships between the education sector and the ICT industry to meet industry needs for expertise and to increase capacity for innovation and research
- Collaboration between the government and multinationals to promote greater cooperation in the planning and funding of ICT industry development and infrastructure initiatives
Regional and International OutreachEgypt’s ICT sector is open to the world. International cooperation has been an integral part of the activities of the ICT sector for decades. However, the scope and focus of such relations have witnessed an evolution in line with the development of the sector.
Egypt acknowledges with appreciation the support provided over the last two decades by international development partners such as USAID, the EU, the International Telecommunication Union (ITU) and UNDP among others, without which the telecommunications infrastructure we are proud of could not have been established. Not only was support provided for essential physical infrastructure, but also for the strategic policy framework that guided the development of the ICT sector.
For Egypt, with world-class ICT infrastructure in place, a geographic location at the crossroads of major global submarine cables, a policy and regulatory environment that nurtures competition, and sizeable local and regional markets, the focus of international cooperation in the ICT sector has matured to a new level.
New infrastructure requirements are now fully funded by the private sector. Regional and international investors are partnering with Egypt’s ICT sector on the B2B as well as G2B levels to expand the market yet further. Egypt is actively engaged in global policy dialogues to shape the priorities of the knowledge society and address issues of common concern. We are now confident that Egypt’s ICT sector has gained recognition as an effective peer in the international ICT community.
As we look ahead to 2010, our vision for international cooperation has three main components: to enhance the political positioning of Egypt’s ICT sector globally in recognition of our role in bridging the digital divide; to increase opportunities for knowledge sharing and exchange of technical expertise, especially in the areas of ICT for development and innovation; and to maintain channels for policy-level dialogue in the widest sense possible.
To realize the vision, we will make use of existing regional and international cooperation mechanisms as well as explore and suggest new ones that add value. The current geographic scope of our activities covers the Euro-Med, Arab and African regions, as well as cooperation with North America and Asia. We will activate cooperation with Latin America in the coming period. We will also further develop cooperation with international development partners such the EU, the World Bank, UNDP and the ITU and will actively explore possible areas of cooperation with the Organization for Economic Cooperation and Development (OECD).
Egypt’s commitment to engage with the EU in policy dialogue and knowledge sharing is serious. In this context, we will work to activate systematic channels for such cooperation with relevant European counterparts, particularly on the Euro-Med level. We have already dedicated resources and created the necessary institutional capacity to ensure the effective participation of Egypt’s ICT sector in the EU’s FP7 research program.
There is no doubt that the momentum created by the World Summit on the Information Society (WSIS) process nationally, regionally and globally is a valuable channel for multi-stakeholder interaction. Egypt will continue its active participation in follow-up mechanisms, including the Internet Governance Forum and the Global Alliance for ICT and Development. Our position is that the diagnosis and piloting phase is over. It is now time for rollout and implementation of projects. This will be the main focus of our work, especially on the Arab and African levels, in coordination with existing regional institutional structures, namely the League of Arab States and the African Union.
The challenges for Egypt’s ICT sector are shared by many and the buzz words are repeated globally: cyber security, media convergence, multilingualism, responsiveness of the regulatory environment to new technologies, optimizing ICT for development, etc. We are now extending capable hands to partner with the world to tackle these issues.
|