ICT in Egypt A Tool for Socioeconomic Development
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1 Dr Sherif Kamel Department f Management Schl f Business, Ecnmics and Cmmunicatin ICT in Egypt A Tl fr Sciecnmic Develpment
2 Egypt ges nline Infrmatin sciety and emerging glbal trends related t technlgy, business and the ecnmy Massive develpments in the areas f infrmatin, cmputing and internetwrking Rle f IT innvatins as a windw f pprtunity t leverage business and sciecnmic develpment Grwing interest in Egypt t develp its natinal infrmatin infrastructure (NII) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
3 Histry with infrmatin An infrmatin flw taking place fr ver 5,000 years (Ancient Histry) First largest and mst famus library wrldwide (Alexandrina) Arab Manuscripts n Papyrus papers (Middle Ages) Printing and publishing f papers in the 19 th century starting with the 1 st jurnal in 1826 (Mdern Ages) First telecmmunicatin signal was in Alexandria in 1854 In the 20 th century, since 1985 a fcus n the Infrmatin Sciety Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
4 Infrmatin rad-map Prgrams Year Open dr plicy 1974 Ecnmic refrm prgram 1985 Infrmatin and decisin supprt prgram 1985 Natinal infrmatin and administrative refrm initiative 1989 Building Egypt s infrmatin infrastructure 1994 Frmulating Egypt s knwledge-based sciety 1999 Addressing ICT issues at the cabinet level 2004 Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
5 Egypt in numbers Civilizatin dating back t 3000 BC Egypt Ppulatin f 70 millin (58% under the age f 25) 1 Millin Km 2 (4% nly is inhabited) Literacy rate 58% (8% cmputer literacy) US$ 1,000+ per capita incme (Glbal Credit Research, 2003) 5.5% inflatin rate 3.2% GDP grwth Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
6 ICT building blcks [1985-Present] 1. Infrmatin base building [Infrmatin] 2. Human resurces develpment [Knwledge and User] 3. Infrastructure develpment [Technlgy] 4. Business develpment [Facilitatr] Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
7 Investing in peple 16 millin+ in educatin Schls 14.5 Millin (1.2+ millin graduates in 2004) University 1.2 Millin ( graduates annually) Pst-Graduate Educatin Ranked 17 th wrldwide in number f yearly graduates 18+ Universities 127 Institutes Gvernment 13 Universities 66 Institutes Private 5 Universities 61 Institutes Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
8 Educatin empwerment Prvisin f affrdable PCs, sftware and Internet cnnectivity fr students Intrducing cmputers in schl educatin (bttm-up) Kids clubs, schls and universities Many access centers in universities and schls Integrating IT in curricula develpment Establishing Infrmatin Technlgy Institutes (ITIs) Training f trainers Financed by the gvernment and the private sectr Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
9 Cmmunity awareness Establishment f ver 1375 IT training centers (mass end users literacy centers) with 8-10 PCs in each TV/Satellite/Vide Media-Driven Sciety Gvernment subsidized Internet Cafes [300 in 2001, fcus n lw incme cmmunities] Intrducing the TACC Mdel [Technlgy Awareness Cmmunity Centers] Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
10 Cmmunicatins Facts 13.4 Millin telephne lines with massive pprtunities fr grwth (eliminatin f years-lng waiting lists fr landlines) 13+ millin mbile phnes (2 peratrs since Nv 1997) 48,800+ Public Phnes (Pre-Paid Cards, since January % cmpund annual grwth in telecmmunicatins Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
11 Prjects intrduced Free Internet initiative (January 2002) which bsted the Internet users frm in 1999 t 4 millin (1.4 millin husehlds) in 2005 ISPs cllect their revenues as a percentage f the telephne call cst (currently 70%). Establishment f ver 970 IT clubs fr cmmunities acrss the different 26 prvinces (mstly in rural and pr areas) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
12 Prjects intrduced PC fr every hme prject allwing the purchase f cmputers n installments and at affrdable prices sld in the first mnth, plan is t penetrate husehlds annually 2% cmputer penetratin rate (2002) Prblem in financing purchasing cmputers (need a system based n installments NOT cash) Cllateral culd be the land line (guaranteed by Telecm Egypt) Cmputer prices range between LE (10% is paid as dwn payment, mnthly installment f LE70-100) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
13 Prjects intrduced Bradband initiative May 2004 widen utilizatin f ICT in Egypt LE150 per mnth fr cnnectivity 9 cmpanies cperating with Telecm Egypt fr service prvisin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
14 Business develpment Challenge Develp the use f cmmunicatins and infrmatin technlgy t serve Egypt s develpment bjectives (build the industry) - Over 1400 firms in the industry in 2005 (350% grwth rate frm 1999) - Average emplyees per firm (15-50) - Over 270K-350K PCs sld annually - 35% f dmestic annual grwth in IT prducts and services - 200% f annual grwth rate in exprts (mainly t Arab Cuntries Arabizatin f Sftware) - GOE is the largest user with 25% f ttal IT cnsumptin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
15 Rle f gvernment in Internet diffusin Gvernment subsidized Internet Cafés Created in yuth centers, public libraries Schls and NGOs Fcusing n deprived and lw incme cmmunities Establish Internet Café Technlgy access centers Building Smart Villages Sftware develpment Infrmatin technlgy services Cnsultatin Assembly manufacturing f cmputers and peripherals Training Business develpment - First Prject Pyramids Smart Village Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
16 Cmpnents f Egypt s Infrmatin Sciety ereadiness ebusiness CIT-Industry Develpment egverment Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
17 Example ereadiness Indicatr Annual rate f grwth Internet users 3.6 millin users 7 millin users 48.57% PCs 1.5 millin PCs 3 millin PCs 50% IT clubs 1000 clubs 3000 clubs 66.67% Bradband Subscribers % Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
18 Example ebusiness Prviding the necessary legislatin fr electrnic transactins Natinal Pstal Authrity Leading ebusiness example in Egypt - Pstal checks = LE149 millin - Pensins = LE3.08 millin payees (LE832 millin per mnth) - Savings accunts = 12.1 millin custmers (LE 28.7 billin) - Service utlets = 3391 gvernment ffices, 5549 nn-gvernment utlets Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
19 Example CIT Industry Develpment Prmting exprts Outsurcing Develping centers f excellence in sftware engineering Use f the Smart village acres - 54 cmpanies ( jb penings) Mving MCIT, TRA, and CASE t the Smart Village Micrsft, Alcatel, Vdafne and Ericssn are there Shuld be generating millin US dllars within 5 years Investment incentives (tax exemptins) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
20 Egypt s Visin ( ) Establish a lng-term ICT infrastructure develpment plan Gvernment-private sectr partnership fr the develpment f the ICT sectr Invest in human resurces (build a knwledge-based sciety) T minimize the digital divide between rich and pr, urban and rural areas, men and wmen, yung and ld Frging alliances with multinatinals Develping an increasing lcal market need Encuraging venture capital financing Prmting incubatrs start-ups Investing in high-tech industries Building an nline business envirnment Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel
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