IT is good for Egypt and IT investors alike, Pierre Loza reports Three memorandums of understanding were recently signed by Intel's CEO Paul Otellini and the Egyptian government for the provision of IT tools for SMEs (small and medium enterprises), training and curriculum development for Egyptian universities and the National Institute for Information Technology. Otellini smiled during the press conference when Egypt's Minister of Communications and Information Technology (MCIT) Tareq Kamel suggested that Intel would move into the Smart Village "very soon", raising speculation about whether the company is keen on making the move from its current headquarters at Orascom's Nile Plaza office complex. Otellini's first ever trip to Africa and the Middle East was a brisk one-and-a-half-day visit which also entailed a meeting with Prime Minister Ahmed Nazif and a quick stop at the Pyramids. Intel developed a "digital village project" last year which connected two public schools, a healthcare centre on wheels, a municipal building, and an e-government services kiosk in the rural village of Onseem, just north of the delta with WiMax wireless Internet service. According to MCIT Kamel, Intel has expressed an interest in bringing WiMax to Egypt. The new technology allows for wireless Internet connectivity in an area of up to 50 kilometres. It has already been installed in parts of Luxor and Sharm El-Sheikh through pilot projects. "We are extremely interested in investing in infrastructure companies that are applying some of these advanced technologies. So as soon as there is a good opportunity, we will write a check," Otellini said when asked about the future of Intel's investments in Egypt. In 2005, Intel established a Platform Definitions Centre (PDC) in Egypt, catering to IT needs of emerging and developing markets. It is one of only four similar Intel facilities around the world. PDC has recently developed a low-cost, highly durable PC designed to increase Internet literacy in Egyptian schools. Such development schemes, designed to increase computer literacy and skills have the potential of nurturing the Egyptian IT sector, especially when the number of Egyptian Internet users has been steadily increasing. Out of Egypt's population of over 72 million people, five million are Internet users, meaning that the Internet reaches nearly seven per cent of all Egyptians, who represent 15 per cent of African Internet users. According to Otellini, "if you look at regional players like the United Arab Emirates, Internet penetration is more than a third of the entire population, but in terms of the number of users, it is a little more than a fifth of Egyptian Internet users," he said. Following the signing, Otellini spoke at a dinner organised by the American Chamber of Commerce where he cited the arrival of "the next billion Internet users who will come online, within five years' time" as an opportunity for both the technology industry and entrepreneurs. To facilitate the connection of the next one billion users, Otellini asserts that there must be greater accessibility to low cost technology. Displaying a round, wafer- like disk, Otellini pointed to a "high performance micro- processor that would reduce the cost of a PC to less that $200." To further increase awareness of IT products in Egypt, Intel teamed up with the Social Fund for Development (SFD) on a pilot project that streamlined IT tools into the activity of SMEs at the start of 2007. After the conclusion of the pilot phase and the rewriting of the software into Arabic, a memorandum was signed between Intel and the SFD to officially execute the project's launch. Intel software developers coordinated with SFD personnel to outline the needs of its SME borrowers who desperately need comprehensive IT solutions. "With this project, the SFD has extended its support of SMEs to encompass financial support and also include technical IT support," said Yasser Helmi, SFD's Smart Village office manager. The SFD aims to provide these solutions to 20,000 SMEs annually at a price that will, according to Helmi, be approximately half of its market price. The Miracle company for orthopedic products has been using the solution provided by Intel and the SFD, free of charge as part of the project's pilot phase. "I would advise any SME to start with it," said Sameh Louis, the company's vice-chairman. Miracle which started out with an initial investment of less than LE2 million in 1995, today exports approximately LE11 million worth of soft orthopedic products to 15 countries. "I think if I bought this solution through a private company, it would be very expensive because it is so comprehensive," Louis said. Connecting all of the company's branches through an online server has also saved Louis some money on his telephone bills. One of the perks of the system is that it secures classified information and allows employees access to the specified information they need to fulfil their productive tasks.
