November has been a month brimming with significant developments in Egypt's IT and tech startup ecosystems. The sector has continued to draw investments, accolades, and international attention. The Information Technology Industry Development Agency (ITIDA) is working tirelessly with stakeholders to fulfill the Digital Egypt Strategy for Offshoring 2022 – 2026, infusing the technology sector with fresh Egyptian innovation. Unwavering Government Support The government has provided substantial support to the burgeoning outsourcing sector. Egypt's Prime Minister Mostafa Madbouly has continued his tours of the prominent technology hubs located in Cairo's eastern and western regions, where numerous global players and tech brands have established their presence. Accompanied by the Minister of Communications and Information Technology, Amr Talaat, and ITIDA CEO, Ahmed El Zaher, the Prime Minister has demonstrated how the local talent pool is effectively transforming Egypt into a leading global business services hub. During visits to companies such as Capgemini, Amazon, Pepsico, PwC, Siemens, and Geidea, Madbouly and Talaat have expressed their pride in the Egyptian workforce, ranging from entry-level customer experience (CX) agents to advanced computer scientists. They emphasized that capacity building in the digital realm is a pivotal element of Egypt's economic growth. "Global industry leaders and high-tech firms worldwide are benefiting from collaboration with Egyptian talent. This visit has reaffirmed that Egypt's skilled workforce ranks among the world's finest," Madbouly stated. The Prime Minister's visit, his second in under two months, included a tour of a diverse collection of global service centers and outsourcing companies in Egypt. These companies operate across various IT offshoring service domains, including CX services, IT solutions, shared and professional business services, software delivery operations, research and development, and electronic design services. Ahmed El-Zaher, CEO of ITIDA, emphasizes that Egypt's abundance of skilled and youthful talent is the cornerstone of the surge in foreign investment and the dynamic growth of the outsourcing industry. "In just the past two months, we have witnessed the opening of new offices for three global corporations: Luxoft, Capgemini, and Vehiclevo. This reflects the investors' confidence in Egypt's business environment and the IT sector, affirming their trust in the capabilities and digital proficiency of our young professionals," El-Zaher remarked. "The steadfast support from the government is not only propelling the sector's expansion but also enhancing its attractiveness to foreign investors and multinational enterprises," El-Zaher added. The Egyptian government continues to advocate for the ICT sector as a fundamental component and a driving force in the development of the national economy. The outcomes of these initiatives – which include investments in digital infrastructure, nurturing local talent, and streamlining business operations – have been remarkable. In the fiscal year 2022/2023, the ICT sector experienced a growth of 16.3%, marking it as Egypt's fastest-growing sector for the fifth consecutive year. Egypt is aiming to double its outsourcing sector exports, targeting up to $9 billion by 2026, in alignment with the Digital Egypt Strategy for the Offshoring Industry. Egypt Climbs the Ranks of the Offshore BPO Confidence Index Ryan Strategic Advisory and Cognitive Copy have unveiled the eagerly awaited annual Offshore BPO Confidence Index, showcasing Egypt's remarkable performance. The index, which is based on a survey of over 250 global nearshore and offshore BPO leaders, evaluates first-hand experiences in seven key areas: local labor market, infrastructure, commercial property, political stability, public security, economic stability, and the BPO ecosystem. Egypt has secured an impressive third place out of 17 countries, boasting an overall Global Confidence Rating of 83.8%. This achievement is attributed to Egypt's robust infrastructure and commercial property offerings, as well as its exceptional local labor market, which earned a second-place ranking in its category. European high-tech powerhouses inaugurate Egyptian expansion Demonstrating why Egypt is highly regarded for offshoring, Cairo's high-tech sector has grown with the official opening of French ITS giant Capgemini's new local headquarters and Vehiclevo, a leading tier 1 supplier of software and automotive technology, launching its new office in Egypt as part of its global expansion strategy. Capgemini's latest Egyptian headquarters, which opened in September 2022, is a state-of-the-art facility equipped with advanced technology. It houses 1600 of Egypt's top multilingual tech talents, reinforcing Egypt's position as a pivotal center for outsourcing and digital transformation services across Europe, the Middle East, and North America. Vehiclevo's new Cairo Competence Center already employs over 75 Egyptian engineers who are making significant contributions to software testing and the development of electronic control units, operating from a modern office in west Cairo. ITIDA signs MoU with major electronics and semiconductors players Aligned with the Ministry of Communications and Information Technology (MCIT) and ITIDA's Egypt Makes Electronics initiative, which aims to position Egypt as a regional and global hub for advanced electronics design and manufacturing, El-Zaher has signed memorandums of understanding (MoUs) with American firm Synopsys Inc and their Egyptian strategic partner, Si-Vision. The MoU signing ceremony, attended by Madbouly and Talaat, marks a significant step forward. Synopsys, a leader in electronics, design, automation, and Si-Vision, a pioneer in Egypt's semiconductor industry since 2007, will be supported by ITIDA to create 500 engineering jobs over the next three years, contributing to Egypt's ER&D exports. Minister Talaat highlighted the MoU's role in ITIDA's efforts to build technological capabilities and foster innovation through various collaboration models, with a particular emphasis on the export sector. Major international companies like Valeo, Siemens, IBM, STMicroelectronics, Luxoft, and Goodix, as well as local firms such as Si-Vision, Pearl, and BrightSkies, are already capitalizing on Egypt's elite capabilities in electronics manufacturing, semiconductors and IC design, and automotive software. Egyptian founders showcasing tech solutions at Web Summit 2023 Web Summit 2023, a pivotal event for global tech leaders, innovative entrepreneurs, and investors, featured Egypt's ICT, GBS, BPO, and startup sectors in a prominent role. In sunny Portugal, ITIDA presented Egypt with a dedicated pavilion, serving as a gateway for business leaders to explore the nation's vast opportunities. Additionally, the event highlighted a diverse group of local startups and entrepreneurs. An impressive cohort of 33 Egyptian startups energized the 'Startup Island,' displaying their innovative ventures and the considerable potential of Egypt's youthful talent. Egyptian startup Sprints wins bronze in Africa's Business Heroes Prize Ayman Bazaraa, CEO and Co-Founder of Sprints, recently attended Web Summit with us and has now secured the bronze trophy at Africa's Business Heroes competition. This philanthropic event, backed by the Jack Ma Foundation and Alibaba Philanthropy, is in its fifth year and continues to recognize the extraordinary abilities of African entrepreneurs who strive to bring about positive change in their communities. 500 Global and ITIDA's Scale-Up November was a standout month for startups on the international stage. At Giza's Creative Hub, ITIDA's collaboration with 500 Global connected tech leaders with emerging entrepreneurs, celebrating the inaugural graduates from the intensive Scale Up programme. This initiative aims to foster startup growth and development. Courtney Powell, COO and Managing Partner of 500 Global, emphasized Egypt's burgeoning potential, noting that the country's startups are poised for significant growth and acceleration in the coming years. Hossam Osman, advisor to the Minister of ICT and ITIDA's Vice President, outlined the Ministry of ICT's strategy to bolster Egypt's startup ecosystem, focusing on creating an enabling environment, facilitating access to finance and talent, and expanding market opportunities. The event also welcomed a new group of startups to enroll in the next phase and showcased the offerings of Creative Hubs. Egyptians Dominate Forbes Middle East 30 Under 30 Forbes Middle East's 30 Under 30 list for 2023 has been unveiled, showcasing Egypt's remarkable presence, particularly in the Science and Technology category where Egyptians represent 30% of the honorees. At ITIDA, we take pride in nurturing and advancing talent, exemplified by Hadeer Shalaby's success. Her journey began with TIEC's Start IT program, leading to the creation of Freezania, an e-commerce platform that earned her a place on this prestigious list. Additionally, Aly Mohamed, founder of Seavo, and Alaa Afifi, founder of Bekia Inc., have made their mark at Web Summit and are now recognized by Forbes for their contributions. The Global Startup Ecosystem Report: Climatech Edition In the wake of COP27's success in Egypt, COP28 commenced in the UAE, coinciding with the release of Startup Genome's latest report on climate and sustainability entrepreneurship. The report ranks Cairo third in the MENA region for Climatech and fourth for the Blue Economy, highlighting COP27's enduring influence on the local ecosystem and underscoring the increasing significance of sustainability in various sectors.
