In spite of all the challenges facing the Egyptian economy, the CIT sector remains one of the strongest assets supporting the Egyptian economic development plans, and the tool towards the information economy transformation. However and in spite of this sector’s successful inventions and achievements, there are still few impediments to face such as the exchange rates, saturation of the mobile market and the economic fuel. In this context, the CEBC& ECSD organized an event with H.E. Eng.Yasser El Kady, the Minister of Communications and Information Technology To discuss the topic of the Egyptian CIT sector between Economic Challenges and Opportunities of Development.

The event was attended by CEBC guests, members and government officials, as excellencies Alaa Fahmy, Hassan Younis, Osama Heikal and Amr Ezzat Salama, as well as ambassadors of Afghanistan, Malta, Zambia and Vietnam were among the guests.

In his opening remarks Eng. Motaz Raslan mentioned that over the past five years the telecommunication sector in Egypt was able to maintain its position, even though the economic conditions experienced by the country were facing several challenges. The sector had a significant role in supporting the economy through its contribution to the national GDP by more than a billion dollars, in addition to 10 billion pounds, and the fourth-generation licenses. Also, through accommodating the requested capacity of the telecommunications in Egypt, and facilitating the civilians’ life by providing modern services to the community. The ICT sector can be a significant tool used to push a new step of growth as well as an opportunity for achieving sustainable development in Egypt.

There are about 96 million Egyptian cellphone users, who spread with average rate of 108%, and about 48 million internet users, which led the sector to witness a fierce competition among the global telecom companies to invest in Egypt, and exploit the wide Egyptian market.

Eng. Raslan further illustrated that we should measure our success by quality not quantity, because we are not getting the full benefits of our achievements in the telecommunication sector to reach the targeted sustainable development; in spite of having a strong structure, still the outcomes are limited to the social media. In addition, there are about 30% of the Egyptian population using the social networking, but many Arab countries had preceded Egypt in the telecommunication sector to serve the development of their countries. He then mentioned the biography of the minister of communications, praising him and his role in developing the sector and completing the contract for the fourth generation license, despite some doubts in his ability to complete the sale of it to the telecommunication companies.

Minister El-Kady mentioned that he would like to share his future plans considering the communication and information technology sector, he explained that the outcome of the fourth generation license reflects the trust and the importance of the telecommunication companies in the Egyptian market, and the market’s ability to receive new investments and expand the existing ones , he added that the value of the fourth-generation license was estimated to be $1.1 billion and 10 billion Egyptian pounds, which was evaluated to be paid 50% in local currency and the rest in US dollars, so the total price of the license amounted to be 2.1 US billion dollars. He then added that the ministry is working to maintain the investment of the existing companies, and to keep the quality of the services provided to the citizens, through supplying the sector with the tools that have the capability of achieving the targeted outcome.

Minister El-Kady demonstrated that businesses integrated in the fourth generation system, stressing on what he described as traction and pull with the mobile operators, are reaching a common ground and maintaining a proper corporate investment and service quality; which shows that what happened in the telecommunications sector indicates the existence of a clear and strong strategy for implementation and a good act to a large extent. He added that considering the telecom companies, they will provide the latest integrated technological services, pointing out that Egypt delayed applying the fourth-generation services for 5 years, where Egypt was within the 6 countries that did not provide the fourth generation out of 154 countries in the world services, but today the existing telecommunication companies are competing in their marketing and advertising services on providing the fourth generation license in the Egyptian market.

During the seminar, it was mentioned that the ministry is working on a multidimensional strategy in cooperation with the ministry of planning to transform the Egyptian society into a fully digital society, depending on the provision of services to the citizens via internet and technology, and aiming to transform the government system at the beginning of 2017 to a smart e-government system by providing 50 applications that will facilitate the citizens’ life.

The ministry of communications also collaborated with the ministry of health in the provision of health data for citizens and provided applications that show and locate the empty rooms, intensive cares, and the hospitals base. The minister also stressed on the importance of localization of technology in the provinces, through the diffusion of technological areas which will also open two new technological areas soon in Burj Al Arab region in Alexandria and in Assiut, where those areas will provide 30 thousand job opportunities for the youths and build contacts with 5 private technological factories by the end of this month.

Minister El-Kady explained that the ministry is currently working on several initiatives in the manufacture of electronics, education and training that will allow about 17,000 trainees to receive international certificates and enable them to work inside and outside Egypt, pointing out that Egypt is in deep need to create electronic factories after serving the fourth-generation services, because only 5% of Egypt’s mobile systems are currently providing the service of the fourth generation.

He described the deployment of smart villages in the governorates of Egypt as the beacon for development, revealing that there will be five Chinese factories in new technological areas for the manufacturing of electronics, in addition to other ten companies that we will sign agreements with them in the following year.

Finally, the minister pointed out that the telecommunications sector also focuses on the development of education, he commended the efforts of the ministry employees and their support in the implementation and improvement of plans and strategies, pointing out that they are establishing strong databases to support and guarantee the delivery of subsidies to reach the poor.

The floor was then opened for questions session, where wide range of vital topics were raised concerning the sector, how to promote it and the future plans of the ministry towards the development of Egypt.