Communications sector contributes 5.8% to GDP in FY 2023/24: Talaat

Amr Talaat, Egypts Minister of Communications and Information Technology, has emphasized that the success of Egypts communications and IT sector is built on its human capital and expertise, which have been driving growth for six consecutive years. Thanks to the skills of those working in this field, the sector’s contribution to Egypts GDP has risen significantlyfrom 3.2% six years ago to 5.8% last fiscal year.

Talaat delivered these remarks during the Tech Heritage IBM Business Partners Forum and the celebration of IBMs 70th anniversary in Egypt. The event was attended by Sherif Farouk, Minister of Supply and Internal Trade; Ghada Labib, Deputy Minister for Institutional Development; Raafat Hindi, Deputy Minister for Infrastructure Development and Digital Transformation; Bakr El-Bayoumi, Deputy Minister for Research and Technological Planning; Ahmed Elzaher, CEO of the Information Technology Industry Development Agency (ITIDA); Mohamed Nasr, CEO of Telecom Egypt; Hoda Baraka, advisor to the Minister for technology skill development; Ahmed Khattab, Director of the National Telecommunications Institute; Saad Toma, General Manager of IBM Middle East and Africa; and Jonah Smith, IBM Vice President of Environmental, Social, and Governance Strategy and Programs.

Minister Talaat highlighted the long-standing legacy and promising future of Egypts communications and IT sector, tracing its roots nearly 170 years to the founding of the Egyptian Telegraph Company (now Telecom Egypt) in 1854. Egypts first telegraph line marked the beginning, followed by the establishment of the Egyptian Postal Service in 1865 and Egypts membership in the International Telecommunication Union as one of its earliest 20 members. By 1881, Egypt had installed its first telephone line, just five years after the telephone patent was granted. The sector’s global advancement continued through the 20th century with the advent of commercial computers and a cascade of innovations.

Egypts position in fixed internet speed across Africa has impressively improved from 40th place six years ago to 1st place over the past two years. Egypt also advanced from the World Banks “C” to “A” category in the Government Digital Transformation Readiness Index and is now among the top 12 countries in cybersecurity.

Outsourcing has grown considerably in Egypt, with the workforce in this sector rising from 90,000 to over 140,000 specialists exporting digital services worldwide within two years. The scope of outsourcing has expanded from traditional call centres, established 25 years ago, to software services and high-value offerings like electronic circuit design, semiconductor development, and embedded software for vehicles. Egyptian outsourcing exports surged by 54% in a single year. Additionally, Egypt attracted five global companies to manufacture mobile phones and tablets domestically, achieving over 40% local value addition.

Talaat noted the progress of Egypt’s national AI strategy, three years ago. He highlighted the Applied Innovation Centers role in developing AI applications across healthcare, agriculture, environmental management, and water resources. Egypt has risen 49 ranks in the Government AI Readiness Index. Additionally, the “Digital Egypt Innovation Hubs” project, launched in 2019, aims to foster an environment that supports innovation. This initiative has expanded Egypts network of innovation centres from three hubs six years ago to 23 centres and tech incubators, with one in each governorate.