Stimulating innovation: An untapped resource for Egypt's economy

Currently, the Middle East and North Africa (MENA) region is a net importer of information and communications technology (ICT). Companies in the region purchase ICT products and services that enhance efficiency, but due to heavy outsourcing, national economies — such as Egypt — are not maximizing the gains that lie in the domestic workforce.

As the Egyptian government undergoes a series of transformations, upcoming policy measures applied to the ICT sector will be paramount in spurring innovation and securing consistent growth for the future.

“For the MENA region, key focus areas with strong local potential include Arabic and Islamic services and applications, IT services and smart devices for the energy and utilities sectors, e-education and e-health systems that support the massive buildup of related sectors in the Gulf Cooperation Council (GCC),” said Bahjat El-Darwiche, Partner at Booz & Company, a global management and consulting firm advising corporations and government ministries.

By investing current ICT expenditures incurred by firms stationed in Egypt back into the domestic economy in order to service local demands, the market will produce more consistent trends.

El-Darwiche went on to challenge the new Egyptian government to be mindful of recent initiatives that include the European Union’s Digital Agenda and Malaysia’s Strategic ICT Roadmap, both programs aiming to establish nationally concentrated ICT services through an agenda of coordinated policies capable of fostering ICT reformation.

Governments in the region have adopted initiatives recently to establish business-friendly policies and reduce startup costs for companies, as well as develop a talent pool to fulfill ICT vacancies. In Egypt the first Telecenter Academy was established in 2009 with the aim to develop domestic capacity in order to service information and communication technologies demands, an alternative to outsourcing.