According ITDIA, rebates to small and micro companies were fully distributed, while support for large and medium companies were disbursed at varying rates
The Information Technology Industry Development Agency (ITIDA) announced the disbursement of its Export-IT’s 2019 export support on ICT exports for local ICT companies.
The ICT product export support’s total export rebate for the program’s 11th round was stated to be EGP 70 million, paid to a total number of 131 companies out of 137 companies that have applied for the program this year.
According ITDIA, rebates to small and micro companies were fully distributed, while support for large and medium companies were disbursed at varying rates.
ITIDA’s CEO, Amr Mahfouz highlighted the importance of the Export IT program, as well as the government’s support and commitment to boost exports as one of the main sources of foreign currency for the Egyptian economy.
“[The] Export IT program is part and parcel of ITIDA’s strategy that primarily aims at boosting Egyptian IT exports, increasing competitiveness, and enabling them to expand and access global markets,” he added.
ITIDA has also reopened registration for the Export IT 2020 program until the end of July, based on local Egyptian ICT companies’ requests, hoping to expand the base of beneficiary exporting companies.
The agency launched its annual “Export IT” program earlier this year to manage the challenges introduced by the pandemic, offering local IT companies cash incentives on proceeds of value-added exports for two consecutive years, 2019 and 2020.
According to ITIDA, 33 companies applied for the program the first time, while 22 startup companies have joined this year. The 11th round of the program saw the participation of new companies from governorates other than Greater Cairo such as Alexandria, Dakahlia, and Ismailia.
All export transactions and supporting documents have been audited, reviewed, and cross-validated by the program's external auditor.
The program accepts local ICT companies with majority Egyptian ownership, headquartered in Egypt, and are exporting ICT services, IT-enabled services such as call center services, consultation, and training services related to the IT industry.
ITIDA has excluded the Egyptian IT startup companies that were founded in 2016 or later from the “headquarter in Egypt” condition.
Approved companies receive direct cash incentives up to 10%, and with a maximum limit of 20% of value-added exports based on the company size (micro, small, medium, or large), with a maximum amount of EGP2.5 million for each company or EGP3 million for companies operating in or have branches in one of the new tech parks, states their terms and conditions.
There are additional incentives for ecommerce, online gaming, e-health, and e-design service providing companies, as well as to companies operating in new tech parks, the new entrants to the program, and the companies operating in other governorates than Cairo, Giza, and Alexandria.
