Egypt targets $6bn in outsourcing exports this year: Communications minister

Daily News Egypt
4 Min Read

Raafat Hindi, Egypt’s Minister of Communications and Information Technology, said the government is targeting outsourcing exports of $6bn this year, up from approximately $5.2bn in 2024, as part of efforts to strengthen Egypt’s position as a global hub for information technology and business services.

Hindi added that the ministry is currently preparing investment plans for technology zones aimed at attracting more outsourcing companies. He also noted that a cooperation protocol has been signed with the Ministry of Investment to incorporate electronics design and semiconductor services into the country’s export development programme.

The remarks were made during a meeting on Monday between Prime Minister Mostafa Madbouly and the Minister of Communications and Information Technology to review the ministry’s performance and monitor progress on ongoing projects.

During the meeting, Hindi outlined current and future investment opportunities in the communications and information technology sector, highlighting four key areas: outsourcing services, localisation of mobile phone manufacturing, digital infrastructure development, and the data centre industry.

As part of efforts to enhance Egypt’s competitiveness in exporting IT services, the minister said the ministry has held discussions with several leading global outsourcing companies regarding investment and expansion opportunities in the Egyptian market. The talks focused on supporting the growth of their operations amid plans to expand investments in Egypt through 2028.

Within the framework of the “Egypt Manufactures Electronics” strategy, Hindi reaffirmed the ministry’s commitment to supporting the expansion of mobile phone manufacturing by encouraging companies to increase local production and raise domestic content levels. He said these efforts aim to meet local demand while boosting exports to regional and international markets.

The minister noted that 15 mobile phone brands are currently manufacturing devices in Egypt, with annual production targeted to exceed 15 million units.

Hindi also highlighted ongoing investments in digital infrastructure, including upgrades to fixed internet networks, the continued replacement of copper cables with fibre-optic networks, the rollout of fifth-generation (5G) services, and efforts to improve nationwide coverage through the construction of new telecom towers and the enhancement of existing networks.

He said the ministry aims to add approximately 3,000 new telecom towers this year and more than 9,000 towers over the next three years.

The minister further revealed that new frequency bands totalling 410 megahertz were allocated to Egypt’s four telecom operators in February, supported by investments worth $3.5bn.

According to Hindi, investments exceeding $6bn have been directed towards the development of fixed and mobile internet services since 2019.

The meeting also reviewed the Ministry of Communications and Information Technology’s efforts to formulate a national strategy for regulating the establishment of data centres in coordination with relevant ministries and government entities.

The strategy seeks to capitalise on Egypt’s strategic geographic location by developing an investment map and offering incentives to attract large-scale data centre investments focused on cloud computing and artificial intelligence services. It also aims to strengthen digital services exports, serve both domestic and international markets, and support connectivity through renewable energy sources.

 

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