1 - Towards a Digital Society and Knowledge-based Economy The Egyptian Information Society Initiative, introduced in 2004, achieved tremendous progress in expanding and modernizing the ICT infrastructure. It also laid firm foundations for continuous development at a rate at which Egyptian society could adapt, reducing the digital divide between different sectors of society by providing access to high-speed internet and ICT tools for individuals and institutions. A major success of the initiative was the establishment of an educational base offering all Egyptians the chance to adopt and use ICTs. The plan also focused on using ICTs to develop and improve public services, particularly in the fields of healthcare and education. The 2004 strategy focused on Public Private Partnerships and on fair regulation of the ICT market. Recognizing the essential role of ICT in social and economic development, MCIT devised the ICT for All program to fulfill two main goals: first, raising citizens’ quality of life by helping the government improve public service provision through the use of ICTs and the development of a knowledge-based society; and second, facilitating citizens’ access to computers and high-speed internet, raising youth employability through ICT training, thus, encouraging government employees to undertake internationally accredited ICT certification programs. Egypt’s ICT Strategy of 2007 was formulated to build on the progress achieved by the government in partnership with the private sector and civil society. 18 19 It focused on establishing local, regional and global partnerships attracting investment through a range of incentives, and the establishment of technology parks such as Smart Village and Contact Center Park in Maadi. A major component of the strategy was the promotion of exports in ICT outsourcing services. Strategically located at the crossroads of Europe, Africa and the Middle East, and enjoying and a large pool of young, multilingual and technically proficient human resources, Egypt has quickly developed a strong outsourcing industry and positioned itself as a world leader in the field. The successful growth of Egypt’s ICT sector is clear in the following indicators: During the period 2008/09-2010/11, the ICT sector raised an annual average of LE 33.71 billion in revenues, with an average annual growth rate of 11.63%, and contributed about 4% of GDP The ICT sector recorded a growth rate of 3.71% in the last quarter of 2011 Between 2006 and 2011, the ICT sector contributed with LE 82.28 billion to the treasury. Egyptian exports of cross-border outsourcing services via the internet were worth $1.487 billion a year by the end of 2011. Egypt, represented by the Information Technology Industry Development Agency (ITIDA), was named Offshoring Destination of the Year in 2008 by the National Outsourcing Association, received a European Outsourcing Award in 2009 and was ranked fourth in the 2011 Global Services Localization Index published by A.T. Kearney At the end of 2011, the number of mobile phone subscriptions was about 83.4 million, representing a penetration rate of about 102.76% At the end of 2011, the number of internet users in Egypt was about 29 million with an annual growth rate of 26% At the end of 2011, the number of fixedline subscribers reached 8.71 million, with a penetration rate of 10.91% The Smart Village technology park has attracted investments amounting to LE 6 billion and created 40,000 job opportunities followed by Cairo Contact Center Park in Maadi 42,000 direct job opportunities and 120,000 indirect job opportunities were created in the last three years through outsourcing and the export of technology services Despite the difficult circumstances of the transition period ushered in by the revolution of January 2011, which has had a major impact on the Egyptian economy, the ICT sector has continued to flourish, with its growth rate rising to 3% in the fourth quarter of 2011. The sector has also continued to create jobs, with a 41% rise in the number of employees of international ICT companies in the Egyptian market in 2011 over the previous year and an 18% rise in those employed by local companies. In addition, and according to the Ministry of Planning, primary indicators for the third quarter of the fiscal year 2011/12 show that the ICT sector recorded an increase in real growth rates from 2.8% in the third quarter of 2010/11 to 8.9% in the third quarter of 2011/12. In November 2011, a report issued by Oxford Business Group noted the significant investments in the Egyptian ICT sector despite the disturbances following the revolution, and that the sector is expected to recover to levels seen prior to the revolution and the global financial crisis. In 2008/09, the sector attracted investment of LE 14 billion. National IC T Plan, 200 0 4 ciety, 200 o S n io t a form Egypt’s In Egypt’s ICT Strate gy, 2007