June-In-Review: Bridging Borders with Tech and Business Excellence

The month of June has been transformative for Egypt’s Global Business Services (GBS) and technology sectors. With key events, strategic partnerships, and groundbreaking initiatives, Egypt continues to establish itself as a leading global hub for business and technology services. This review highlights the major milestones and developments that have shaped Egypt's competitive edge in these fields.?

Egypt-EU Investment Conference: A Gateway to Growth and Innovation?

The Egypt-EU Investment Conference marked a pivotal moment for Egypt's Global Business Services (GBS) and offshoring ecosystem, highlighting Egypt's commitment to becoming a global hub for business and technology through strategic partnerships and robust government initiatives.?

A key session, titled “Leapfrogging with Technology and a Growing Entrepreneurship Ecosystem,” was moderated by Amane Dannouni , Managing Director & Partner at BCG. It featured notable leaders, including HE Dr. Amr Talaat , Minister of CIT; Mathieu Bousquet, Director of DG NEAR; Mohamed M. , CEO & Chairman of Si-Vision LLC; Hicham Arafa , COO at Brightskies & Chairman of Octopus Outsourcing ; Gellért Jászai , Chairman of 4iG; Vach Kompella , President of Nokia IP Networks; and Norman A. , CEO of AFR-IX Telecom. The discussion underscored Egypt’s strategic location, extensive telecom digital cable network, and significant investments in digital infrastructure, positioning it as a prime hub for technology and business services.?

A major highlight was the signing of an MoU to expand 诺基亚 ’s operations in Egypt. Witnessed by HE Prime Minister Mostafa Madbouly and including Eng. Ahmed Elzaher , CEO of ITIDA, this partnership aims to establish a Center of Excellence for network automation innovation, initially supporting service exports to 60 countries in the Middle East and Africa. Dr. Amr Talaat highlighted that Nokia’s expansion reflects Egypt’s attractiveness for global investments, driven by a talented digital workforce and strategic public-private partnerships.?

The conference identified six key investment areas in Egypt's ICT sector: Data Centers, Telco Infrastructure, Business Process Outsourcing (BPO), Digital Banking, IT Delivery Centers, and Engineering Research & Development (R&D). These areas offer robust connectivity, skilled labor, competitive energy costs, enhanced service delivery, financial inclusion, and a pipeline of skilled IT talent, making Egypt an ideal investment destination.?

Strategic highlights reinforced Egypt's role as a global business and technology hub. Egypt’s strategic location, coupled with the Suez Canal, enhances its role in global commerce. The modernization of ports, highways, and railway systems strengthens Egypt's strategic position in the global supply chain. Additionally, Egypt aims to become a hub for technology, business, and green energy, supported by cooperation with Europe to diversify gas sources and enhance energy security.?

The supportive ecosystem for startups includes a digital platform for comprehensive services, a permanent support unit for startups, and investment incentives for SMEs. The EU's growing interest in investing in Egyptian startups highlights the mutual benefits and strategic importance of this partnership.?

Minister of Communications Highlights ICT Sector Growth and Expansion?

HE Dr. Amr Talaat, Minister of CIT, highlighted significant growth and transformation in Egypt's ICT sector during a recent industry event and the 20th anniversary of the Egyptian Information Telecommunications Electronics and Software Alliance ( EITESAL NGO ). He emphasized the expansion of 70 global companies in offshoring centers, creating 60,000 job opportunities, and the sector's critical role in driving economic growth across various industries.?

Dr. Talaat noted that the ICT sector has grown by over 70% since 2004, with annual growth rates exceeding 11%, making it the fastest-growing state sector, surpassing 16%. He pointed out that Egypt has become a global leader in offshoring, with 170 companies delivering a wide range of services. ITIDA has signed agreements with over 70 companies to expand offshoring centers, creating more than 60,000 job opportunities in the next two years.?

The launch of the Digital Egypt platform, offering 170 digital government services with over eight million registered users, has significantly facilitated citizens' access to digital services. Additionally, the fixed Internet speed has increased 13-fold, making Egypt the leader in African fixed broadband speed for three consecutive years. The number of cell towers has increased five-fold over the past decade, and Internet access has risen from 11% to 70% over the past 20 years.?

Dr. Talaat also highlighted the automation of the universal health insurance system in six governorates, with further expansions planned, and the launch of the e-litigation platform for economic courts, accelerating remote litigation procedures. He noted that ICT sector exports grew by 26%, and business process outsourcing (BPO) exports surged by 54% in one year.?

Furthermore, Egypt advanced on the World Bank’s GovTech Maturity Index and the Government AI Readiness Index, highlighting its progress in digital governance and AI readiness. Dr. Talaat reaffirmed the government's commitment to further developing the ICT sector, aiming to boost its contribution to GDP and solidify Egypt's position as a premier destination for offshoring and global business services. He concluded by emphasizing the sector's remarkable achievements, its role in driving economic growth, and its focus on attracting foreign investment.?

Egypt-Hungary Business Forum: Strengthening IT Sector Cooperation?

ITIDA recently organized the Egypt-Hungary Business Forum, which saw participation from 13 Hungarian companies and academic institutions alongside 19 specialized Egyptian companies in telecommunications and information technology. The forum was designed to enhance cooperation, knowledge exchange, and networking, with the aim of fostering bilateral projects and stimulating joint investments, thereby promoting economic growth.?

During the event, Hungarian companies introduced their businesses, products, and services, followed by pre-scheduled bilateral meetings with Egyptian companies to build fruitful partnerships. The discussions underscored Egypt’s competitive advantages in the IT sector, such as its skilled workforce, competitive business costs, advanced infrastructure, and continuous government support. These factors collectively bolster Egypt’s position as a leading regional IT hub.?

ITIDA's strategic initiatives were a focal point, particularly its efforts to support local SMEs by creating opportunities for networking and partnership, thereby enabling their expansion into foreign markets. This forum highlighted the significant export experience of Egyptian companies to the European market, covering areas like software development, mobile application development, design and electronics engineering, and business process outsourcing.?

The forum underscored the potential for increased bilateral cooperation and investment between Egypt and Hungary in the IT sector. It aims to drive innovation and attract investments, supporting Egypt’s goal of building a sustainable digital economy and enhancing its stature as a global hub for business services.?

Webinar with ABSL DACH : Elevating Global Business Services Strategy?

On June 20, ITIDA participated in a highly insightful webinar hosted by ABSL DACH, titled "The New World of Business Services Locations." This event brought together global experts to explore prime locations for the Business Services sector, offering invaluable perspectives on infrastructure, talent availability, and strategic advantages of various regions.?

Egypt, represented by ITIDA, was featured alongside other prominent locations. Our participation underscored Egypt's strategic positioning at the crossroads of Europe, Africa, and the Middle East, providing unparalleled access to diverse markets. The rapidly growing, tech-savvy workforce, supported by ITIDA's initiatives, presents a dynamic talent pool for businesses. Coupled with a business-friendly environment, robust infrastructure, and a government committed to innovation, Egypt stands out as a prime destination for growth and expansion.?

Nevin Khaled Helmy , Senior International Marketing Lead at ITIDA, provided an in-depth analysis of Egypt's competitive strengths in the global business services landscape. Her presentation highlighted the country's robust market, skilled talent pool, and supportive business environment. The session emphasized Egypt's pivotal role in diversifying outsourcing strategies amidst a global talent shortage.?

ITIDA's partnership with ABSL DACH is crucial in promoting Egypt's potential as a top destination for global business services. This collaboration aims to foster international partnerships, drive innovation, and expand Egypt's footprint in the global market.?

Egypt's Comparative Advantages in IT-BP-ER&D Services Unveiled in New Report?

ITIDA, in partnership with Everest Group , has released a comprehensive report detailing Egypt's distinct competitive edge in IT, business process outsourcing (BPO), and engineering research and development (ER&D) services. The report conducts a thorough analysis, highlighting Egypt's superior cost efficiencies, expanding talent pool, and favorable business environment compared to other global locations. Positioned as a prime destination for service delivery, Egypt offers strategic benefits including robust infrastructure and a skilled workforce. Learn more about Egypt's potential by downloading the executive summary here or contacting Salma Tawfik ([email protected]) or Nevin Khaled Helmy ([email protected]) for the full report.?

Cairo Secures 3rd Position in MENA Startup Landscape?

Reflecting Egypt's growth as a regional entrepreneurial hub, Cairo has secured the 3rd position in the Middle East and North Africa (MENA) startup landscape in the latest Global Startup Ecosystem Report 2024 (GSER 2024) by Startup Genome .?

Egypt’s capital city climbed from the 51-60 range last year to the 41-50 range in the overall Emerging Ecosystems ranking, underlining its rapid development, and increasing influence within the global startup community. It also took the top ranking in the Bang for Buck category among MENA ecosystems, highlighting its efficient utilization of venture capital to support tech startups.?

With a 10/10 score in funding and an 8 in talent and experience, Cairo demonstrated its capacity to attract investment and nurture a skilled workforce essential for startup success. Silicon Valley maintained its top position globally, with New York City and London following closely.?

Egypt has become one of the largest startup hubs in the Arab world, with over 280 startups founded and funded since 2010. The MCIT’s initiatives, such as the TIEC and Creativa innovation hubs , have played a crucial role in cultivating the local startup scene and providing essential resources and support for entrepreneurs.?

FinTech Egypt – an initiative by the CBE – revealed that local FinTech and FinTech-enabled startups, and PSPs successfully attracted a total of $796.5 million in 2023, where private equity investments summed up to $437.7 million, in addition to a total of $358.8 million venture capital investments which have been multiplied by 28.7 times in the past 3 years.?

ITIDA and 500 Global Launch BAM Egypt and Celebrate Scale-Up Program Graduates?

ITIDA in collaboration with 500 Global , is launching a new cycle of the Business Accelerators Management (BAM) Egypt program. Scheduled from October 27 to 31 in Cairo, the program aims to enhance the capabilities of accelerators and incubators, supporting future entrepreneurs in Egypt and the region. The curriculum covers best practices for securing deals, finding experienced mentors, and designing effective programs. ITIDA and 500 Global bring together extensive expertise, with 500 Global having managed over 85 accelerator programs worldwide.?

In addition, ITIDA and 500 Global celebrated the graduation of the second batch of the Scale Up Program, held at the Creativa Innovation Hub in Giza. This seven-week program, designed for Egyptian startups at the Pre-Series A or Series A stages, focuses on expanding market presence and scaling operations. The 12 graduating startups include Akhdar, Amanleek, Dayra, ElGameya, enza, Hatla2ee, La Casa Egypt, Partment, Sympl, Tawredaat, YllaOrder, and Zeal.?

The Scale Up Program provides a structured curriculum with growth techniques and fundraising strategies, alongside personalized mentorship, and access to 500 Global’s network of investors and partners. Graduates also receive office space at the Creativa Innovation Hub for one year, free of charge.?

These initiatives underscore ITIDA's commitment to fostering a supportive environment for startups and accelerators, driving innovation, and contributing to Egypt’s economic growth. For more information about the BAM Egypt program, please visit the link.?

June has been a landmark month for Egypt, showcasing its strategic initiatives and partnerships that reinforce its position as a leading global hub for business services and technology innovation. From the significant discussions and agreements at the Egypt-EU Investment Conference to the impactful webinar with ABSL DACH and the comprehensive report by ITIDA and Everest Group, Egypt continues to attract international interest and investment. The collaborative efforts with 500 Global further highlight Egypt’s commitment to nurturing its entrepreneurial ecosystem. As Egypt continues to build on these achievements, it is poised for even greater growth and innovation in the months ahead.?