67.1 billion Pounds Targeted Investments for the communications & Information Technology Sector

The communications and information technology sector plays an important and major role in promoting the foundations of sustainable development, by providing it with modern means of knowledge and information that are motivating and guiding investment, production and operation decisions.

In this regard, the Ministry of Planning and Economic Development announced the objectives and investments of the communications and information technology sector in the plan for the current fiscal year 2022/2023.

To clarify the plan, Dr. Hala Al-Said, Minister of Planning and Economic Development, announced that the 2023/22 plan is intended to direct investments amounting to 67.1 billion pounds for the communications and information technology sector, compared to 58.2 billion pounds for investments expected by the end of the previous year 2022/2021, with a growth rate of 15%. The percentage of sector investments to the total investments of the plan is 5%.

Regarding the objectives of the communications and information technology sector in the 2023/22 plan, the report of the Ministry of Planning indicated that the sector’s production is expected to increase by about 20% at current prices, and by 14.3% at constant prices. and 14.4% at constant prices, with a contribution rate of 2.9% and 3%, respectively, of the GDP.

The report indicated that the strategic objectives of the sector's development vision revolve around interacting with the data of the digital age, in which technological developments follow in a steady and accelerating manner.

The most important of these strategic objectives are:

1- Developing and updating the information infrastructure and digital content.

2- Completing and developing the first and second phases of Knowledge City.

3- Developing and activating the use of modern technology.

4- Building an integrated information society capable of making full use of the communications infrastructure.

5- Investing in all innovative technological solutions.

6- Developing the communications and information industries.

7- Deepening the local manufacturing of electronics to increase the added value.

8- Expanding the establishment of technology parks to open new horizons for investment.

9- Raising the efficiency of public agencies and bodies, and developing existing systems to improve the level of services provided to citizens.

10- The strategic objectives of the sector include developing cooperation programs with international companies and international organizations to increase the efficiency of the state's administrative apparatus, by providing the latest software at competitive prices from companies working in the field of information technology.

11- Adapting the use of information and communication technology to provide educational services.

12- Achieving equality in scientific opportunities for all segments of society, in addition to developing the sector’s activities to raise its contribution to the gross domestic product from 2.5% in the year of the plan to reach 5% within two years.

13- Developing exports of outsourcing services and electronic products to exceed $6 billion, compared to $3.5 billion in 2021/2022, in addition to increasing the share of technological exports in total merchandise exports to 5%, compared to 2.5%-3% in 2021/2022.

14- Digital transformation and the development of communications infrastructure

It can be said that the communications and information technology sector achieved tangible achievements during the year 2021, as it was the highest growing sector, and it also witnessed a major transformation to complete the huge projects that are being implemented, such as digital transformation, the development of communications infrastructure, and the increase in digitized government services provided to citizens through the Digital Egypt platform and post offices. , raising internet speeds with huge investments, and providing new frequencies for mobile services that contributed to making a quantum leap in mobile data transmission services in 2022.

The most prominent achievements of the sector during 2021 were the increase in the growth rate of the sector to reach 16% in 2020/2021 compared to 15.2% in 2020/19, the growth of the value of digital exports from $4.1 billion in 2019/2020 to $4.5 billion in 2020. 20/2021, and the achievements have crystallized in improving Egypt's position on the digital world map.

One of the indications of this is that Egypt is among the 10 fastest growing countries for digital inclusion, according to the report issued by the Roland Berger Foundation. 36 out of 90 countries worldwide adopt this type of service, compared to the 79th position in 2019, achieving the highest growth rate in the index worldwide, in addition to the advancement of Egypt’s ranking by five positions in the Comprehensive Internet Index 2021 to become the 73rd position among 120 countries. Compared to the 78th position in the previous year, it also ranked fourth at the level of the 29 African countries included in the index.

According to a report issued by The Economist magazine's research unit, Cairo ranked first in the continent of Africa in strategies for attracting foreign direct investment, according to the report on the future of the technological business environment in Africa for the year 2022/21 issued by FDI Intelligence affiliated with the Financial Times newspaper. It is ranked first in the Middle East and Africa, and 15th in the world in the Global Service Locations Index issued by Kearney International Consulting for the year 2021.