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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:
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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. |
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• To create a vibrant and export-oriented ICT industry.
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To leverage public-private partnerships as an implementation mechanism whenever
possible. |
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• To enable society to absorb and benefit from expanding sources of
information.
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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.
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To support the development of the skills required by the ICT industry. |
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• 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:
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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. |
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Partnerships between the education sector and the ICT industry to meet industry
needs for expertise and to increase capacity for innovation and research. |
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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
Outreach
Egypt’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.
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Related
Documents
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| Egypt's Information Society
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An outline of the initiatives implemented to bolster Egypt's transition into a
fully-fledged information society while simultaneously addressing internal
development issues through R&D, total domestic e-Access as well as the
implementation of adaptable regulatory procedures in order to attract foreign
investment.
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First Published :
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Dec 2003
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Updated :
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April 2004
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| Egypt’s Vision of the Information Society |
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The document outlines Egypt's vision of building the Information Society and
bridging the digital divide together with a closer look at the country's
Egyptian Information Society Initiative (EISI), structured around seven major
tracks: e-readiness, e-learning, e-government, e-business, e-health, e-culture
and ICT export initiative.
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First Published :
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May 2005
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Updated :
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Oct 2005
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Introduction
 ICT Sector
Reform
ICT
for Development
Innovation
and ICT Industry Development
Conclusion
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