BUILDING RESILIENCE: LESSONS FROM EGYPT’S RESPONSE TO DISRUPTIVE EVENTS

No crisis is the same as the previous one; neither can it be managed the same way. Resilience is more than just the capacity to bounce back rapidly, contrary to popular belief. History shows that in times of disruption, resilience depends on response, foresight, and adaptation. Therefore, it should come as no surprise that resilience, the capacity to flourish in the face of change, has become a top priority for many global business leaders.

Business executives have been repeatedly reminded over the past few years of how interconnected and unpredictable economies, societies, and industries are. From the pandemic to the conflict in Ukraine, to recent natural disasters, global instability has profoundly impacted geopolitics, economics, trade, energy, and financial markets. Unexpected impacts have been noticed on supply networks, markets, employees, and business reputations alike.

So how can organizations adopt a resilient state where they are aware of what is coming, prepared to endure setbacks, and ready to move quickly into the next reality??

• Simulations and exercises can develop the team's "muscle memory," spot weaknesses and strengths, and come out stronger from a crisis, the organization can test, reassess, and improve using simulations and exercises.
• The creation of a plan is essential to a successful crisis management strategy and, eventually, a crisis response. The strategy serves as the cornerstone of response and offers structure and direction to meet the challenges of a major disruptive event.

EGYPT’S RESILIENT FOUNDATIONS IN A DISRUPTIVE WORLD?

During the pandemic, Egypt’s ability to respond to the crisis was significantly strengthened by its national economic and social reform program over the years. Recent energy sector reforms and macroeconomic stabilization initiatives have aided in resilience building, and international financing mobilization has helped maintain foreign reserves at relatively high levels. Government support and incentive schemes have helped FDI continue to flow into the country, creating new jobs and areas of expertise. Egypt has become a hub for ITS and BPO services due to its strategic location and the government's strong commitment to promoting technological innovation and workforce training. An attractive outsourcing market as it is central at the intersection of Europe, Africa, and Asia, sharing an Eastern European Time (EET) zone with Europe and regarded as a nearshore destination.

In addition, effectively leveraging digital technologies for a more efficient public sector and strengthening the foundations of the digital economy has seen ICT emerge as a prominent characteristic and one of the crucial foundational elements for Egypt’s economic growth. During the COVID-19 pandemic, for example, the local ICT sector showed resilience and grew at a 16.8% annual rate, making it the fastest-growing industry in the country. As a result, Egypt is now more appealing to foreign investors and more international businesses are selecting Egypt as their go-to location for offshoring and business services.?

INNOVATION BREEDS RESILIENCE

The IT industry in Egypt has shown remarkable resilience over the years. Despite facing numerous challenges such as political instability and economic downturns, the IT sector in Egypt has continued to thrive. This resilience can be attributed to several factors, including the availability of a highly skilled and educated workforce, a supportive government, and a growing entrepreneurial culture. For example, the government has created technology parks and provided tax incentives to attract foreign investment.?

Additionally, IT professionals in Egypt were able to work remotely for companies around the world, demonstrating the country's capabilities in the IT outsourcing market. Overall, the IT industry in Egypt has played a critical role in enabling digital transformation in various sectors, including e-commerce, banking, healthcare, and remote work. The pandemic accelerated the adoption of digital technologies in Egypt, and the IT industry responded by developing innovative solutions to meet the changing needs of consumers and businesses.

Egypt has made a significant leap in internet infrastructure with a $2 billion investment, resulting in a remarkable upgrade in internet services. The fixed internet speed has skyrocketed from 5.6 Mbps in 2019 to an impressive 47 Mbps in 2023. This substantial improvement promises to enhance connectivity, enable faster browsing, and empower the digital economy in Egypt.

ITIDA prides itself in supporting the tech innovation community. It has a specialized tech innovation and entrepreneurship center ?that is essential to the growth of Egypt's growing startup industry. It provided support for the 'Wild Card' online hackathon in the EMEA region, which asked for the construction of various elements of a response system that aids people and businesses in coping with the disruption that occurred because of the pandemic. ITIDA was also a strategic partner in Pandemic TechHack, a virtual hackathon with many local and foreign institutions, research organizations, and startups to adopt moonshot ideas that will help deal with the crisis or position Egypt well for the aftermath. Additionally, a hackathon was co-launched by ITIDA and Dell Technologies to encourage student and startup creativity and support those ideas that use cutting-edge technologies like artificial intelligence (AI), blockchain, cloud computing, data science, and analytics to stop the spread of the new Coronavirus.?

Egypt Makes Electronics (EME) is a flagship initiative supported by the Capacity Building-EME Program led by ITIDA. This program aims to strengthen and expand the electronics manufacturing sector in Egypt. Through a comprehensive approach that includes training, infrastructure development, and industry support, EME has successfully attracted investment and facilitated the establishment of local electronics manufacturing companies. By fostering a favorable environment for innovation and collaboration, the program has positioned Egypt as a competitive player in the global electronics market and contributed to the growth of the country's economy.

BUILDING A BETTER FUTURE FOR EGYPT

To create a more resilient business model and foster confidence, it is crucial to build a strong and resilient remote workforce that is secure, connected, and productive. Recent years have seen an uprise in the popularity of emerging technologies such as cloud computing, data analytics, artificial intelligence, and protection software. They are now viewed by businesses as essential tools for doing business, and Egypt prides itself with the top tier talent it nurtures for these future-ready jobs, including multiple training and certifications programs that we at ITIDA dedicate time and effort toward.

Business resilience has perhaps never been more crucial. It allows companies to adapt quickly to disruptions, maintain continuous business operations, and protect people, assets, and brand equity. More resilient companies achieved superior outcomes and some even became innovators, as we saw with COVID-19. The emphasis must shift from defensive measures and short-term goals to a sustainable, inclusive growth agenda to achieve success for businesses.