November has been a month of noteworthy advancements in Egypt's IT and tech startup ecosystems, as the sector continues to draw in investments, accolades, and global attention. While ITIDA diligently collaborates with stakeholders to fulfill the Digital Egypt Strategy for Offshoring 2022–2026, the tech sector is abuzz with emerging Egyptian expertise.
Consistent Government Backing
With the government providing extra impetus to the flourishing outsourcing sector, Prime Minister Mostafa Madbouly is actively visiting prominent technology hubs in the east and west of Cairo, home to numerous global players and tech brands. Accompanied by Minister of ICT Amr Talaat and ITIDA CEO Engineer Ahmed El Zaher, the prime minister's visits spotlight the local talent pool's significant contribution to making Egypt a global business services hub.
During visits to companies like Capgemini, Amazon, Pepsico, PwC, Siemens, and Geidea, Madbouly and Talaat expressed pride in Egyptian talents, spanning from entry-level CX agents to advanced computer scientists. They emphasized that capacity building in the digital space is pivotal to Egypt's economic growth. Madbouly stated, “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.”
This visit marks the second by the Prime Minister in less than two months, involving diverse global service centers and outsourcing companies in Egypt, covering various IT offshoring services.
CEO of Egypt’s IT Industry Development Agency (ITIDA), Ahmed El-Zaher, underscores that 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.
In the past two months alone, new offices for global companies, Luxoft, Capgemini, and Vehiclevo, have been inaugurated, showcasing investor confidence in Egypt's business landscape and the IT sector.
“The unwavering government support is not only boosting the sector’s growth but also amplifying its appeal to foreign investments and global corporations,” highlighted El-Zaher.
The Egyptian government remains committed to positioning the ICT sector as a key driver for developing the local economy, resulting in the ICT sector being the fastest-growing in Egypt for the fifth consecutive year, with a growth rate of 16.3% in 2022/2023. Egypt aims to double its outsourcing sector exports, targeting up to $9 billion in 2026, as outlined in the Digital Egypt Strategy for the Offshoring Industry.
Egypt Ascends the Offshore BPO Confidence Index
In the eagerly awaited annual Offshore BPO Confidence Index by Ryan Strategic Advisory and Cognitive Copy, Egypt claims an impressive third place among 17 measured countries. With an overall Global Confidence Rating of 83.8%, Egypt stands out for its robust infrastructure, commercial property, and an outstanding local labor market that secures the second position in this category.
European High-Tech Giants Expand Into Egypt
Illustrating why Egypt is an attractive destination for offshoring, this month witnessed the expansion of Cairo’s high-tech landscape. French ITS giant Capgemini officially opened its new local headquarters, complemented by Vehiclevo, a leading tier 1 supplier of software and automotive technology, inaugurating its new office as part of the company's global expansion strategy.
Capgemini’s new Egypt HQ accommodates 1600 multilingual tech talents, strengthening Egypt's role as a critical hub for outsourcing and digital transformation services for Europe, the Middle East, and North America.
Vehiclevo’s Cairo Competence Center, with 75+ Egyptian engineers, is making strides in software testing and electronic control units from its new office in west Cairo.
ITIDA Signs MoU with Major Electronics and Semiconductors Players
In alignment with the Ministry of Communications and Information Technology (MCIT), ITIDA CEO Engineer Ahmed El-Zaher signed MoUs with American company Synopsys Inc and their Egyptian strategic partner, Si-Vision.
Synopsys, an American electronics design automation company, and Si-Vision, a pioneer in the semiconductor industry in Egypt, will add 500 engineering jobs over the next three years with ITIDA’s support. This aligns with Egypt’s ‘Egypt Makes Electronics’ initiatives, aiming to develop Egypt into a regional and global hub for advanced electronics design and manufacturing.
Global Startup Ecosystem Report: Climatech Edition
As COP28 commences in the UAE, Startup Genome's latest report on climate and sustainability entrepreneurship and funding highlights Cairo's third-place ranking for Climatech and fourth place for the Blue Economy in the MENA ecosystems. This underscores the lasting impact of COP27 held in Egypt in 2022 on the local ecosystem and the growing significance of sustainability across sectors.
Web Summit
ITIDA’s annual participation in Web Summit 2023 showcased Egypt’s ICT, GBS, BPO, and startup industries, with a country pavilion designed as a one-stop-shop for business leaders. The event also provided a platform for 33 Egyptian startups to exhibit their innovations globally.
Egyptian Startup Sprints Wins Bronze in Africa’s Business Heroes Prize
Egyptian entrepreneur Ayman Bazaraa, CEO and Co-Founder of Sprints, secured the bronze trophy in the annual Africa's Business Heroes competition. This philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy spotlights African entrepreneurs effecting positive change within their communities.
500 Global and ITIDA’s Scale-Up
In November, ITIDA’s partnership with 500 Global celebrated the first batch of graduates from the Scale-Up program at Giza’s Creativa Hub. The program aims to nurture startups and elevate them to the next level, with Global 500 COO Courtney Powell expressing excitement about the substantial opportunities for Egyptian startups.
Egyptians Dominate Forbes Middle East 30 Under 30
Forbes Middle East’s 30 Under 30 list for 2023 featured an impressive representation from Egypt, especially in the Science and Technology category where Egyptians comprised 30% of the honorees. Fostering and upskilling talents, as done by ITIDA, has contributed to the recognition of innovative Egyptians on a global scale.
In conclusion, November was a month where Egypt's IT sector not only attracted global attention but also demonstrated its capabilities through strategic partnerships, expansions, and recognitions. The unwavering support from the Egyptian government, coupled with the country's growing talent pool, positions Egypt as a thriving hub for technology, innovation, and outsourcing.
