Egypt's IT sector's exports surge by 26.5% during FY 2022/2023: IDSC

CAIRO - 9 July 2024: Egypt's digital exports and information technology ( IT ) sector have experienced a surge of 26.5 percent in FY 2022/2023, to reach $6.2 billion, compared to $ 4.9 billion in FY 2021/2022, according to a report by the Information and Decision Support Center (IDSC) and reviewed by Prime Minister Mostafa Madbouly.

 

Parallel to this, the added value of the IT sector in Egypt has also witnessed substantial growth, reaching LE 275.5 billion in FY 2022/2023, compared to LE 209.5 billion in the previous fiscal year, a remarkable growth rate of 31.5 percent.

 

The report further highlights the remarkable progress in Egypt's outsourcing services sector, which recorded a growth rate of 54.2 percent in FY 2022/2023. 

 

The added value of this sector reached approximately $3.7 billion, up from $2.4 billion in the previous fiscal year.

 

Egypt has set its sights on becoming a global center for these services. The country aims to reach the value of outsourcing export services to $9 billion by 2026.

 

To support this vision, the number of outsourcing services centers in Egypt has increased significantly, reaching 199 during FY 2022/2023, up from 160 in the previous fiscal year, a growth of 24.4 percent. 

 

Additionally, the number of companies working in the outsourcing services field has increased from 148 in FY 2021/2022 to 185 in FY 2022/2023, a 25 percent rise.

 

The government's commitment to the IT sector is further evident in the increased investments allocated to the communications and information technology sector.

 

 In the plan for FY 2023/2024, the investment allocation has reached LE 83.3 billion, up from about LE 56 billion in the previous fiscal year, a remarkable growth rate of 48.8 percent.

 

Notably, the private sector has taken a leading role in these investments, accounting for over 63 percent of the total, with the remaining 37 percent coming from public investments.

 

To further solidify its position as a global outsourcing hub, Egypt has signed 74 agreements with international and local companies since November 2022.

 

 These agreements aim to expand the establishment of 85 outsourcing centers and appoint 60,000 outsourcing specialists, showcasing the country's determination to capitalize on this growing industry.

 

Egypt's Digital Strategy for the Outsourcing Industry 2022/2026 serves as the guiding framework for this ambitious plan. 

 

The strategy aims to increase the country's digital export revenues three-fold at a compound annual growth rate of 19 percent during the period 2022/2026, cementing Egypt's status as a prominent player in the global digital economy.