The current economic conditions and the investment climate will play an important role in the success of the Ministry of Communications and Information Technology’s strategy for establishing technological complexes, CEO of ProsyLab Holding Company Mahmoud Morsi said.
Many challenges are facing the Egyptian market during the current period, including the instability of laws and lack of clarity of tax legislation, Morsi said. However, he added, the telecommunications and information technology (IT) sector in general is attracting foreign companies for investment.
Egypt has many advantages that make investment in this sector a good investment opportunity, especially with the high price of the dollar compared to the price of the Egyptian pound recently.
The availability of a broad base of young, skilled technical workers is one of the most prominent advantages. In addition, human resources are highly available and can be trained to work in the information technology sector, such as outsourcing activities and the call centre industry.
The Egyptian market distinguishes itself by being a fertile market owing to the 90 million mobile users, and 30 million internet users, according to the Ministry of Communications and Information Technology.
Many foreign companies in the IT sector are considered as a main base for exporting and providing services across Africa and the Middle East region, which can be further utilised through technological complexes.
However, according to managing director of Link Egypt Yahia Tharwat, the current economic conditions in Egypt are not suitable for implementing mega projects like the technological complexes. He attributes this to the instability of the Egyptian pound’s exchange rate against the US dollar during the last period, in addition to the instability of some economy-related laws.
Domestic companies will not have sufficient capabilities to establish administrative headquarters in these complexes, due to the high prices. As an example, Tharwat cited the many unoccupied spaces in the technological complex in Maadi.
Smart Villages Company (SVC) chairman and managing director Adel Danesh believes that the strategy to establish these complexes will contribute significantly to expand the IT industry in various governorates across Egypt, which will help to increase the export of telecommunications and IT.
Many young people in the provinces have good production capacity in the software and IT sector, which will offer great support to Egypt’s exports, he added.
Danesh said that the company is ready to cooperate with the Ministry of Communications and Information Technology by sharing their expertise in smart villages and technological complex management.