Egypt showcases innovative schemes in promoting the information society

Notes and media contacts

About ICT In Egypt

The global knowledge revolution is placing ever-increasing demands on developing societies. Egypt is building a strong and durable information society for the future. It is determined to decrease the digital divide and position itself firmly among its peers in the international arena. Governing Egypt's initiative is the Ministry of Communications and Information Technology - MCIT. It was formed specifically to facilitate Egypt's transition into the global information society. Through Egypt's Information Society Initiative, EISI, the Ministry is realizing its twin objectives of building both an information society and a vibrant local ICT industry that fosters export growth. The Government of Egypt is committed to offering every individual, business and the community at large the opportunity to grasp the benefits of the new information era.

At the heart of Egypt's Initiative is a belief in the power of ICT as a vehicle to support the nation and address socio-economic challenges. To reinforce the country's e-readiness the initiative promises unified e-strategies formulated on the national level to set a credible national ICT plan that places heavy emphasis on joint public-private partnership efforts and the role of civil society for long-term success.

EISI revolves around seven fundamental components, each reflecting the power of technology as an agent for change: e-Readiness, e-Government, e-Learning, e-Business, e-Health, e-Culture and promoting investments in the sector. In each area, the MCIT has launched uniquely Egyptian schemes to manage traditional problems in untraditional ways. The success of the government in promoting ICT in Egypt and the framework for what lies ahead already acts as a guide for other emerging countries.

Unique Models

Aiming at encouraging citizens to access the web, the Subscription-Free Internet model is uniquely Egyptian; based on a revenue sharing scheme between Egypt's national operator, leading local ISPs and traditional content providers. It offers Internet at the price of a local call. This development lifted monthly payment barriers that lead to a significant leap in numbers of online users-exceeding 3 million; and the number of homes accessed the service-reaching 856 000. While contributing to a vibrant information society, this model also proved the elasticity of the Egyptian market, and empowered the development of localized, Arabic-language content.

Similarly, the PC For Every Home initiative -- launched by MCIT and implemented by Telecom Egypt and 18 private sector computer manufacturers is a model for public-private partnership, it offers affordable, internet-enabled family computer on installments, with no collateral and no deposit required - the only guarantee needed being a fixed telephone line. Since the launch of the project late in 2002, the initiative proved growth in both the local assembly and software industry as well. So far, over 65,000 PCs were purchased through the initiative.

The MCIT established more than 640 Information Technology Clubs in dense and remote areas of Egypt with an aim to familiarize people with computers and promote IT awareness regardless of skills, gender, and economic standing. In collaboration with NGOs and local organizations, the Clubs offer affordable access to computers, Internet, IT training and house software libraries. Through its continuing commitment to IT Clubs, MCIT is making IT part of local communities; linking the average Egyptian to the global information society and empowering individuals to meet the challenges of the global marketplace. Recently, the Clubs' project has been collaborating with other programs such as the UNDP and Unlimited Potential of Microsoft and The Korean Agency for Digital Opportunity and Promotion to achieve its objective.

Remarkably, since the creation of the Ministry in 1999, Egypt increased the number of fixed phone lines to 12 million; mobile subscribers surpass 6 million; and the number of Internet users exceeds 3 million.

Inviting innovation
Egypt, keen to promote investment in the CIT sector, has formulated a series of innovative incentives to create one of the most competitive marketplaces in the region. Egypt's General Authority for Investment and Free Zones is a one-stop shop for investors - local or foreign - that integrates all relevant administrative bodies to make investment simple and straightforward. Additionally, new legislations to empower the CIT sector have been created, including laws on intellectual property rights, telecoms (enforced by an independent Telecoms Regulatory Authority) and e-signature. This is in addition to legislation bringing banking, labor and investment procedures to world standards.

Innovation through public-private partnership
Egypt seeks to develop partnerships with international investors to develop its CIT landscape. Telecom Egypt, the national telephone operator, is implementing an ambitious program to modernize its infrastructure that has already borne notable success through partnerships with multinational corporations. There are growing opportunities for telecom investors in the telephony (both fixed and GSM) market and in the fast-growing internet connectivity market.

Another ambitious development program is MCIT's e-government project, which seeks to provide intelligent interaction between the government, citizens and the investment community. The e-government project, while striving to facilitate Egyptian citizens' dealings with the government is also intended to enable technology transfers between local and foreign companies by having them form partnership projects. Recently, Egypt's Prime Minister and Microsoft's Chairman launched Egypt's E-Government Gateway, a new citizen-oriented gateway that aims at enhancing the level of services offered to citizens and create a favorable environment for investors and members of the business sector. Currently, more than 15 complete services are available online; services now range from requesting a birth certificate, to checking the traffic fines to taxation and customs services. Additionally, information related to more than 700 services provided by the various ministries is available on Egypt's government services' portal www.egypt.gov.eg

Proven know-how
Egypt invests an important part of its budget in education and is keen to teach new technologies to students of all ages. As a result, Egyptian schools and universities produce high-quality graduates in the field of computer science and engineering that have been highly sought after by firms across the world; having proven themselves across the region and beyond.

In addition, Egypt has invested in giving ongoing training to CIT professionals, significantly through the Software Engineering Competence Center, which supports the industry by raising standards and improving software engineering practices. The SECC provides consultancy services to firms working in offshore software development.

Smart Village, Smart Move

A 300-acre technology park dedicated to the growth of the CIT sector, the Pyramids Smart Village, recently opened, providing state-of-the-art infrastructure just outside Cairo. The Smart Village, is owned by a private consortium and has already attracted leading international firms such as Alcatel, the Cairo and Alexandria Stock Exchange, Microsoft and Vodafone. It also hosts Xceed, Telecom Egypt's contact center facility, which has a capacity for 1200 agents. As it grows, the Smart Village is expected to create over 30,000 technology jobs.

Additional facts

The number of companies working in the ICT field reached 1141, employing 33,189 professionals.

Currently in the market there are two mobile operators, 7 public date networks, 4 internet backbone providers, 149 ISPs, 6 companies offering value added and voice services, 3 payphone companies, 10 telecommunications technology companies, 2 VSAT, and 2 GMPCS companies.

For more information on the ICT industry, visit citegypt.com.

For more information on exhibitors in the Egypt pavilion, kindly visit egy-cebit04.com

For further contacts: Mariam Fayez - Media Relations Coordinator, Ministry of Communications and Information Technology, Egypt