Egypt’s IT sector sees influx of global tech firms, garners global recognition
November has witnessed an abundance of exciting developments in Egypt’s IT and tech startups ecosystems, as the sector continues to attract investment, accolades, and global interest.
As the Information Technology Industry Development Agency (ITIDA), part of the Egyptian Ministry of Communications, is working diligently with its stakeholders to deliver on the Digital Egypt Strategy for Offshoring 2022 – 2026, the technology sector is buzzing with new Egyptian excellence.
Unwavering Government Support
The Egyptian government is giving an extra boost to the thriving outsourcing sector. Egypt’s Prime Minister Moustafa Madbouly continues his visits to the outstanding technology hubs in the east and west of Cairo where dozens of global players and technology brands are located. Minister of Communications Amr Talaat and ITIDA CEO Ahmed El Zaher accompanied the prime minister to showcase how the local talent pool effectively contribute to transforming Egypt into a global business services hub.
Visiting the likes of Capgemini, Amazon, Pepsico, PwC, Siemens, and Geidea, Prime Minister Madbouly and Minister Talaat expressed their pride in Egyptian talents – from entry-level CX agents to advanced computer scientists – and reiterated that capacity building in the digital space is a key driver of the Egyptian economy.
“Global industry giants and high-tech companies from all over the world are reaping the benefits of working with Egyptian talents, from entry-level CX agents to subject matter experts’ engineers, and programmers. This visit has confirmed that Egypt’s skilled workforce is among the best in the world,” said Madbouly.
Prime Minister’s visit is the second of its kind in less than two months, involving a diverse array of global service centres and outsourcing companies in Egypt, operating in various fields of IT offshoring services including customer experience (CX) services, IT solutions, shared and professional business services, software delivery operations, research and development, and electronic design services.
Meanwhile, Ahmed El-Zaher said Egypt’s wealth of skills and young talents serves as the driving force behind the influx of foreign investments and the dynamic expansion of the outsourcing industry.
“Over the past two months only, we’ve seen the inauguration of new offices for three global companies, Luxoft, Capgemini, and Vehiclevo. This underscores investors’ confidence in Egypt’s business landscape and the IT sector, showcasing their belief in the capabilities and digital skills of our youth,” ITIDA CEO flagged.
“The unwavering government support is not only boosting the sector’s growth but also amplifying its appeal to foreign investments and global corporations.”, EL-Zaher concluded.
The government continues to champion the ICT sector as an integral part and a key driver for developing the local economy. The results of these efforts – including investment in digital infrastructure, investing in the local talent and improving the ease of doing business – have led to spectacular results.
In 2022/2023, the ICT sector surged 16.3 percent to become the fastest growing sector in Egypt for the fifth year in a row. Egypt aims to double its outsourcing sector exports up to $9 billion in 2026 as part of the Digital Egypt Strategy for the Offshoring Industry.
Egypt Climbs Ranks of the Offshore BPO Confidence Index
Ryan Strategic Advisory and Cognitive Copy have released their much-anticipated annual Offshore BPO Confidence Index and Egypt is ticking all the right boxes. Through surveying over 250 global nearshore and offshore BPO leaders, the study has measured the experts’ first-hand experience across seven categories: the Local Labor Market, Infrastructure, Commercial Property, Political Stability, Public Security, Economic Stability, and, of course, the BPO Ecosystem.
Egypt ranked an impressive third place among 17 countries measured, with an overall Global Confidence Rating of 83.8 percent backed by the country’s impressive infrastructure and commercial property, as well as, the incredible local labour market which ranked second in this category.
European High-Tech Powerhouses Inaugurate Egyptian Expansion
Exemplifying exactly why Egypt ranks so favourably for offshoring, Cairo’s high-tech offering has expanded this month with French ITS giant Capgemini officially opening its new local headquarters. In addition, Vehiclevo, one of the leading tier 1 suppliers of software and automotive technology serving the world’s largest automotive manufacturers, is inaugurating its new office in Egypt as part of the company’s global expansion strategy.
Capgemini’s newest headquarters builds on its previous expansion into Egypt in September 2022. This state-of-the-art facility, designed with cutting-edge technology, accommodates 1,600 of Egypt’s finest multilingual tech talents, strengthening the country’s role as a critical hub for outsourcing and digital transformation services for Europe, the Middle East, and North America.
Meanwhile, Vehiclevo ’s new facility, known as the Cairo Competence Centre, already employs more than 75 Egyptian engineers making a mark in software testing and the mastery of electronic control units from the upscale new office in west Cairo.
ITIDA inks MoU with Major Electronics and Semiconductors Players
ITIDA CEO Ahmed El-Zaher has signed memoranda of understanding with U.S. company Synopsys Inc and their Egyptian strategic partner, Si-Vision. The signing is in line with the Ministry of Communications, and ITIDA’s ‘Egypt Makes Electronics’ initiatives which aim to develop the country into a regional and global hub for advanced electronics design and manufacturing in Arab, African, and European markets.
Synopsys is an U.S. electronics design automation company that focuses on silicon design and verification, silicon intellectual property, and software security and quality. Si-Vision was launched in 2007 as one of the pioneers in the semiconductor industry in Egypt. Together, and in light of this MoU, Synopsys, and Si-Vision will have ITIDA’s support to add 500 engineering jobs over the next three years, adding to Egypt’s ER&D exports.
The signing ceremony was attended by Prime Minister Mostafa Madbouly, as well as Minister Amr Talaat.
“The MoU comes within the framework of the important role that ITIDA plays in building technological capabilities and supporting innovation by offering different models of collaboration, with a strong focus on the export sector.” Talaat said.
Large players like Valeo, Siemens, IBM, STMicroelectronics, Luxoft, and Goodix along with several local players such as Si-Vision, Pearl, and BrightSkies are leveraging Egypt’s top-tier capabilities in areas of electronics manufacturing, semiconductors and IC design, and automotive software.
Web Summit
Web Summit 2023 was indeed an annual fixture on ITIDA’s calendar.
Held in sunny Portugal, Egypt’s ICT, GBS, BPO, and startup industries took centre stage at the remarkable edition of the Web Summit. Not only did ITIDA represent Egypt with a country pavilion, designed as a one-stop-shop for business leaders to delve into the country’s endless opportunities, but it also took the chance to spotlight an excellent array of local startups and entrepreneurs on a global stage. Founders from 33 Egyptian startups had the ‘Startup Island’ buzzing, as they showcased their innovative companies and, by extension, the massive potential of young, Egyptian talents.
Egyptian Startup Sprints wins Bronze in Africa’s Business Heroes Prize
Egyptian entrepreneur Ayman Bazaraa, CEO and co-founder of Sprints, has won the bronze trophy in the annual Africa’s Business Heroes competition (ABH). The ABH Prize Competition is a philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy. In its fifth year, ABH’s annual competition continues to highlight the remarkable talents of African entrepreneurs dedicated to effecting positive change within their communities.
500 Global and ITIDA’s Scale-Up
At Giza’s impressive Creativa Hub, ITIDA’s partnership with 500 Global witnessed tech leaders connect with budding entrepreneurs while celebrating the first batch of graduates from the intensive Scale Up programme, designed to nurture startups and take them to the next level.
Global 500 COO and managing partner Courtney Powell reiterated the endless opportunities Egypt’s most innovative minds continue to put forward.
“500 Global has been excited about Egypt since we made our first investment in 2013. The opportunities that Egyptian startups have to scale and accelerate over the next few years are quite substantial. We’re excited that ITIDA has been able to bring 500 Global to Egypt and have a programme like this that we’re going to see the effects of for years to come.” Powell said.
Hossam Osman, advisor to Minister of ICT and ITIDA’s vice president, said: “The Ministry of ICT has a strategy to enhance the startup ecosystem in Egypt. To do so, we’re focusing on four dimensions: an enabling environment, access to finance, access to talents, and access to the market. What we’re doing with 500 Global works to enhance the capability of startups.”
The event also reflected an opportunity for a new batch of startups to sign up for their next round, as well as experience what Creativa Hubs have to offer.
Egyptians dominate Forbes Middle East 30 Under 30
Forbes Middle East’s 30 Under 30 list for 2023 was released with outstanding representation from Egypt. In Science and Technology category, Egyptians made up a whopping 30 percent of the honorees.
“Here at ITIDA, we pride ourselves on fostering and upskilling talents and watching them flourish. One such example is the brilliant Hadeer Shalaby who started her journey in the tech space in TIEC’s Start IT programme and has since launched the e-commerce platform Freezania, which landed her a spot on this year’s coveted list.” ITIDA report read.
“Likewise, we’ve been lucky to witness the journeys of Aly Mohamed, founder of micro-mobility startup Seavo , and Alaa Afifi, founder of Bekia inc , who have joined us at past editions of Web Summit and have also been honored this year by Forbes.”
The Global Startup Ecosystem Report: Climatech Edition
As COP28 is taking place in the UAE following a successful COP27 in Egypt in 2022, Startup Genome has released its latest report, that focused on climate and sustainability entrepreneurship and funding.
When ranking MENA ecosystems, Cairo came in third for Climatech and fourth for the Blue Economy – a testament to the lasting impact COP27 had on the local ecosystem, and the increasing importance of sustainability across all sectors.
