With the support of the Ministry of Communication and Information Technology (M.C.I.T),
e-commerce has been well promoted in Egypt and it has led to an increase in internal trade and also an increase in exports to other countries.
Introduction
The Egyptian economy suffered a lot from the revolution that began on the 25th of January, 2011. The people of Egypt were the main victims; millions suffered from hunger, poverty, unemployment, and infringements on their rights. The economy of Egypt was collapsing with each passing day of the revolution which lasted about 17 days and brought an end to the 30-year reign of Hosni Mubarak. Even after the revolution, there was still the need for a meaningful recovery plan that would ensure the economy successfully comes out of troubled waters. In simple terms, the Egyptian economy needed
a savior to rescue it as soon as possible. Then came along Information and Communication Technology (I.C.T).
We have to admit, ICT was already in play before, during, and after the time of the revolution but it was not as “full-blown” as it is right now. Before recent times, the Egyptian government had not realized how much of a goldmine ICT was to the economy. A testament to this is their rating of internet usage freedom which was “fairly free” during the time of the revolution in 2011 and “not free” during the 2013 coup when the current president General Abdel Fattah Al-Sisi removed Mohamed Morsi from power.
An Overview Of The Egyptian Digital Economy
For many years before the intervention of Al-Sisi’s government in 2014, Egypt hugely depended on income generated from being a rentier state instead of focusing on increasing productivity of the economy and empowerment of domestic producers. With this change in economic planning came the emergence of ICT as a major player in the Egyptian economy and the government’s investment in it has begun to pay off. Not only is ICT showing it is could sustain the economy presently, but it is also giving them hope for a brighter future for all of Egypt.
The ICT sector of the Egyptian economy has taken its place in the country’s development and economic growth. The ICT sector has a better growth rate than the country’s GDP growth according to the International Trade Administration (ITA) of the United States Department of Commerce. According
The Coronavirus epidemic hurt so many sectors of the Egyptian economy but the ICT sector was more or less the most progressive sector of the economy during the pandemic. According to Amr Talaat, the Egyptian the Minister of Communications and Information Technology, the ICT sector in Egypt has been the largest growing sector in the economy and it maintained the top spot even during the pandemic. In 2020, a year characterized by the effects of the Coronavirus pandemic, Mr. Talaat stated that the ICT sector achieved a growth rate of 16% which was its highest in the past 3 fiscal years. With the help of its digital economy, Egypt was the only country in the Middle East and North African region to experience positive GDP growth and also not fall into economic recession in 2020.
What do you do to a sector of your economy that kept growing instead of depleting during a global pandemic? The correct answer would be to make the best out of that sector, using it to benefit the citizens of the country and also the other sectors of the economy.
The Impact Of ICT On The Egyptian Economy
For any sector of a country’s economy to be considered beneficial, it needs to have a direct impact on the people. With information and communication technology as a tool, the government has empowered millions of youths across the country, equipping them with the knowledge and skills to thrive in a society driven by technological advancement. The Egyptian government sponsors programs that give professional training and exposure to trends in technology from all around the world. These training and exposure thereafter result in these youths having innovative ideas of their own and they use these ideas to directly impact their society.
With the support of the Ministry of Communication and Information Technology (M.C.I.T), e-commerce has been well promoted in Egypt and it has led to an increase in internal trade and also an increase in exports to other countries. With the ever-growing ICT sector in Egypt, domestic and foreign investors have been attracted to invest in the country. These investments have also directly resulted in
The ICT sector of the Egyptian economy has taken its place in the country’s development and economic growth.
millions of job opportunities, addressing the issue of unemployment in the country. Apart from providing employment opportunities, investments in the ICT sector have provided added revenue to the economy; the more investments are being made, the more taxes are being paid to the government. Taxes paid by these investors are used in providing social amenities like roads, hospitals, and standard schools for Egyptian citizens and residents.
The Egyptian government deserves credit for the digitalization of its economy. They have taken steps to ensure mobile services and high- speed internet are available to the people. Despite this, there is still a lot of work to be done to overcome challenges including cyber-crime, data safety, and availability of technology to individuals in rural areas. The Egyptian model of a digital economy is worthy to be imitated by every other country on the African continent. Though already one of the top economies in Africa, Egypt can rank higher than its counterparts like Nigeria and South Africa in terms of GDP with ICT as its driving force.
