ICT sector in Egypt
Unlike many other sectors of the Egyptian economy, the ICT (Information and Communications Technology) industry has remained remarkably resilient in the face of the political uncertainty and macro-economic instability brought by the 2011 revolution. The ICT industry is expected to play a central role in driving growth for Egypt’s economy in the future.
Egypt’s ICT sector increasing every year, it is forecasted that ICT sector will represent 8.43% of GDP by 2020. This makes the country one of the most important leaders in the Middle East and North Africa region and could be potential competitors for the ICT companies operating in Central and Eastern Europe.
According to results of “ICT Access and Use by Households and Individuals Survey for 2015-2016” there are 29,84 million internet users in Egypt, internet penetration rate is 37,8 %. Main Egypt’s ICT indicators, reported by the official statistics are provided in the table below.
|INDICATOR||QUANTITY||GROWTH RATE % (2016)|
|Mobile subscriptions||97,40 million||3,98 %|
|Mobile penetration||109,45%,||2,27 %|
|Mobile internet subscriptions||28,65 million||13,56 %|
|USB Modem subscriptions||3,30 million||15,08 %|
|International bandwidth||089,37 Gbps||68,47 %|
|ADSL and mobile internet users||4.60 million||23.22 %|
|Proportion of mobile internet users of total mobile subscriptions||29.42 %||26 %|
Egypt’s ICT sector is strongly positioned for future growth, regarding the growing consumer market, government support and the development of the infrastructure. There is effective competition between the mobile network operators. Mobile penetration has increased steadily
in recent years, reaching about 110% by late 2016. The main reasons of the fact ICT sector development are: growing ICT usage among middle-class Egyptians and the business community, rapidly expanding international bandwidth and decreasing tariffs. Nevertheless, the expansion of mobile data and smartphone usage in Egypt is quite slow. Challenges of the ICT sector include bureaucracy, red tape and limited infrastructure, these are the issues that the government has been committed to resolving in the future.
Egypt’s ICT sector’s contribution to GDP grew by 13% in 2015, reaching 3.37 billion Euro and representing 4.1% of total GDP. For instance, in 2014, 177 export-oriented firms, employing 45,000 workers, generated ICT exports of 0.57 billion euros. Egypt has achieved significant success in exporting ICT services. In 2014 the value of such exports grew by 7%. Asia (including the Gulf) takes the biggest share of Egyptian ICT exports, accounting for 55% of the total value. This was followed by North and South America with 27%, Europe with 12% and Africa with 5%.
Call centre services accounted for 41% of exports. Software and application development made up a further 15%, while technical support accounted for 14%.
This is the first our post from series about analysis of Egypt IT/ICT market, stay tuned for more or subscribe to our mailing list. Here is a plan of our next posts in series:
- ICT sector in Egypt
- Market characteristics of the ICT sector in Egypt and main consumers
- ICT services and products in Egypt
- ICT services and products: supply and demand (current situation and prognosis)
- Main competitors of the ICT market (companies and short description of the activities)
- The pricing of the ICT services and products
- Main premises of the entrance to the market (legal, financial, infrastructure, cultural)
- SWOT analysis of the ICT sector in Egypt
- Doing ICT business in Egypt and start-up’s communities
- Powerpoint presentation (all topics included + more)
Notes & Links:
- When analysing ICT sector in Egypt it is important to consider Egyptian crisis 2011-2015 which began with the Egyptian revolution of 2011.
- The organisation spearheading Egypt’s ICT growth
- Egyptian Ministry of Communications and Information Technology, National Telecom Regulatory Authority
- Egypt – Mobile Infrastructure, Operators and Broadband – Statistics and Analyses