Transcript Egypt-US Partnership in ICT - Ministry of Communications and

Egypt-US Partnership in ICT:
The Way Forward
Tarek Kamel
Minister of Communications & Information Technology
June 23, 2009
Agenda
• Egypt-US Relations
• Egypt Today – Reforms Paving the Road to Success
 Political Reform
 Economic Reform
• Egypt’s Model For Sectoral Reform – ICT Sector
• Egypt-US Partnership in ICT
Egypt-US Relations
• Over 35 years of strong relations on the different fronts;
Political, Economical and Social
• Political relations slowed down with the US previous
administration
• President Obama’s reach out to the Muslim world in
general and to Egypt in particular is warmly welcomed
and appreciated. It signifies a new Era of Partnership
• We, the ICT sector of Egypt, are ready to start taking
concrete measures to partner with US ICT sector in
Technology Policies and Innovation
EGYPT TODAY – REFORMS PAVING THE
ROAD TO SUCCESS:
Political Reform
• Moving Forward with the Democratic Process
• Having the most Comprehensive Constitutional
Amendments since the 80s in March 2007
• Empowerment of Women (Min of 64 Seats in
Parliament)
• Fostering free Exchange of Information through
the Openness of Internet in Egypt
Economic Reform
• Financial Sector Reforms
 Restructured & consolidated the Banking sector
 Empowered the supervisory role of an independent
Central Bank
• Tax Reforms
 Highest personal tax rate cut from 32% to 20%
 Corporate tax rate cut from 42% to 20%
• Custom Reforms
Reduced tariffs from an average of 14.6% to 6.2%
Simplified tariff items from 27 to 6
Economic Reform
• A New Regulatory Framework for Competitive Market
Economy
 Establishment of a Consumer Protection Agency
 Establishment of a Competition Protection Agency & Antitrust
REFORM PAYS-OFF
Economic Reform:
The Rescue In Tough Times
• During the last three years, the Egyptian economy has been
growing at an average annual rate of 7%. One of the fastest
growing economies among emerging markets
• With the current global economy crunch, real GDP growth
has slowed down to 4.5% in FY 2008/09 creating an
employment challenge
Egyptian Economy vs. ICT Sector
Growth
%
25.00
20.00
15.00
19.20
15.62
15.92
15.50
11.51
10.00
12.83
13.46
13.17
10.92
10.35
6.49
5.83
5.00
4.10
4.23
Q2 2008/2009
Q3 2008/2009
0.00
Q1 2007/2008
Q2 2007/2008
Q3 2007/2008
Q4 2007/2008
Q1 2008/2009
Annual growth rate of the Egyptian economy
Annual growth rate of Egypt's ICT sector economy
Growth projections starting 2009 and beyond indicate that Egypt
will sustain its position as one of the world’s fastest growing ICT
economies
EGYPT’S MODEL FOR SECTORAL
REFORM – ICT SECTOR :
ICT Sector Strategic Goals
• Become One of Egypt’s Major Pillars of GDP
Growth
• Deploy a Modern Communications Infrastructure
• Foster Innovation to Improve Productivity &
Citizens Quality-of-Life
• Improve Egypt Hi-Tech Image & Competitiveness
• Help other Egyptian Economy Sectors to Grow
ICT Sector Competitive
Advantages
•
•
•
•
•
•
•
Abundant young talent, multi-lingual human supply
Intensive capacity-building programs
Structurally low cost of operations
Quality & scalable infrastructure
Strong government support & incentive programs
Conducive business environment
Strategic geographic location
ICT Sector Reform
• Strategic Direction to Reform the Sector and Engage
Egypt in the Global Knowledge-Based Economy by
Adopting the following Guiding Principles:
Deregulating the Telecom Sector
Strengthening the Role of the Regulator and Ensuring its
Transparency
Investing in Innovation & Human Capital
Introducing Various Modalities of Public Private Partnerships
Creating a Conducive Business Environment to Attract FDIs
Activating Intellectual Property Protection Reforms
ICT Sample Success Indicators:
Contribution to GDP
ICT Sample Success Indicators:
Mobile Market Boom
ICT Sample Success Indicators:
Internet Penetration
Quality Services for Our Citizens
• e-Education:
 Achieving quality education for socio-economic development
 Qualifying world-class and technically sound ICT graduates
• e-Health:
 Improving Public Health through (Information dissemination)
 Reducing the cost and increase of the efficiency of health services in
Egypt
• Arabic e-Content:
 Increasing the access to Arabic online digital content to reach to over
300 Million Arab speaking population around the world
 Setting the environment for the production of sustained flow of Arabic
digital content online
ICT Export Targets
Target
Revenue
2005
2010
CAGR
R&D/Engineering $100 m
KPO Services
$30 m
Localization
$40 m
38%
43%
22%
Arab Content
$200 m
46%
BPO Services
$75 m
72%
Technical Support $200 m
27%
Contact Centres $115 m
50%
IT Products*
$45 m
25%
IT Services
$280 m
27%
Target Budget: US$ 1.1 Billion
Target Employees: 37K
ICT Industry in Egypt:
Where it Stands!
• “ Egypt is ranked number 6 among emerging countries in IT Services“
At-Kearney 2009
• “Egypt was once again among the top 10 global reformers - the third time
in 4 years – and top regional reformer this year.”
Doing Business 2009
• “Cairo is in the 7th position amongst the top 50 emerging global
outsourcing cities”
Global Services-Tholons Study, October 2008
• “Only Egypt has strong similarities with India and China...(and) is by far the
Middle Eastern Country currently best positioned to take advantage of the
boom in outsourcing”
Yankee Group Report , July 2008
EGYPT-US PARTNERSHIP IN ICT:
Excerpts from President Obama’s
Speech in Cairo
• “On science and technology, we will launch a new fund to support
technological development in Muslim-majority countries, and to
help transfer ideas to the marketplace so they can create more
jobs. We'll open centers of scientific excellence in
Africa, the Middle East and Southeast Asia, and appoint new
science envoys to collaborate on programs that develop new
sources of energy, create green jobs, digitize records, clean
water, grow new crops”
• “On economic development, we will create a new corps of business
volunteers to partner with counterparts in Muslim-majority
countries. And I will host a Summit on Entrepreneurship
this year to identify how we can deepen ties between business
leaders, foundations and social entrepreneurs in the United States
and Muslim communities around the world”
Partnerships:
Win/Win Proposition for All
We Invite the Multi-Nationals to Egypt to:
• Benefit from Egypt’s big Emerging Market for Technology &
Products
• Make-use of Egypt’s Special Status as the gateway to the Arab
region and Africa
• Capitalize on Egypt’s Competitiveness in talent, infrastructure
and cost
• Develop Egypt’s knowledge-based Economy
MNCs Sample Investments
in Egypt
Company
•
•
•
IBM
Mentor Graphics
Intel
•
Microsoft
•
•
•
•
•
•
CISCO
Oracle
Orange
Alcatel Lucent
Satyam
Valeo
Activities
Software Dev/support Centers of 1000+ developers
Design Center of 280+ engineers
Regional Platform Definition Center
Regional Software Enablement Lab
Developer Support Center for Regional Developers
Software Innovation Center
Core competency e-learning institute
Global Support Center with 600+ Engineers
Global Support Center with 1500+ Engineers
International Support Center with 700+ Engineers
BPO Services with 200+ Engineers
300 + engineers for embedded SW Dev for the
Automobile Industry
MNCs New Investments
in Egypt
Company
•
•
•
•
Google
EMC
IBM
Oracle
• Stream
Activities
Online Advertisement Industry Development in Egypt
EMC Centre of Excellence (300 employees)
IBM Global Delivery Center (1100 employees)
Expanding Presence to reach around 900 employees
- Global Customer Services center (+200 employees)
- Solution Services Center in Egypt (+210 employees)
Customer Contact Center in Egypt (1,000 employees)
Cooperation Opportunities with
US Government
•
Proposal to form a US-Egypt ICT High-Level Working Group
“ICTWG” to Address Policies and to ensure Continuous
Dialogue in Areas Like:
 Policies for Internet Governance (IGF Sharm El Sheikh
Nov. 2009)
 Cyber Security, Data Protection, Privacy and Child Online
Safety
 Modern Broadband Communications Infrastructure
 Research & Innovation in the ICT Sector
 Telecom & Postal Services Policies
Cooperation Opportunities in:
Internet Governance
• Future of IG: ICANN’s Joint Project Agreement with US
Government to expire by September 2009
• Future of the IGF beyond its 5 years mandate:
 Importance of the forum as a multi stakeholder venue for
dialogue
 Assessment of IGF to be presented during IGF 09
• Towards IGF 09: Developmental issues, multilingualism, child
safety, enhanced cooperation, Cyber security and Internet
outreach
Cooperation Opportunities in:
Innovation & Entrepreneurship
• Create Joint Research Centers & Programs (Science &
Technology Fund) to Work in the Following Areas as:
 Cloud Computing & Virtualization
 Green Datacenters
 Digitized Records
 Nanotechnology
• Strengthen Ties between Business Leaders, Foundations and
Social Entrepreneurs in US & Egypt (Entrepreneurship
Summit)
“Egypt is ready and looking forward to partner with the
US on ICT policy discussions and to push forward the
mutual, agreed-upon agenda throughout the region
(Middle East & Africa)”
Thank You