Sherif Kamel
Copyright
© 2004 Sherif Kamel

 Information society and emerging global trends related to technology, business and the economy
 Massive developments in the areas of information, computing and internetworking
 Role of IT innovations as a window of opportunity to leverage business and socioeconomic development
 Growing interest in Egypt to develop its national information infrastructure (NII)
Copyright
© 2004 Sherif Kamel

 An information flow taking place for over 5,000 years ( Ancient
History)
 First largest and most famous library worldwide (Alexandrina)
 Arab Manuscripts on Papyrus papers ( Middle Ages)
 Printing and publishing of papers in the 19 th
1 st journal in 1826 ( Modern Ages) century starting with the
 First telecommunication signal was in Alexandria in 1854
 In the 20 th century, since 1985 a focus on the Information Society
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© 2004 Sherif Kamel

Open door policy
Economic reform program
Information and decision support program
National information and administrative reform initiative
Building Egypt’s information infrastructure
Formulating Egypt’s knowledge-based society
Addressing ICT issues at the cabinet level
1974
1985
1985
1989
1994
1999
2004
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© 2004 Sherif Kamel

Egypt
 Civilization dating back to 3000 BC
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Population of 70 million (58% under the age of 25)
1 Million Km 2 (4% only is inhabited)
 Literacy rate 58% (8% computer literacy)
 US$ 1,000+ per capita income
(Global Credit Research, 2003)
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5.5% inflation rate
3.2% GDP growth www.idsc.gov.eg
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© 2004 Sherif Kamel

1.
Information base building
2.
Human resources development
3.
Infrastructure development
4.
Business development
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© 2004 Sherif Kamel

16 million+ in education
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Schools 14.5 Million (1.2+ million graduates in 2004)
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University 1.2 Million (250000+ graduates annually)
Post-Graduate Education 300000
Ranked 17 th worldwide in number of yearly graduates
Government 13
Universities
66
Institutes
18+ Universities
127 Institutes www.mcit.gov.eg
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© 2004 Sherif Kamel
Private 5
Universities
61
Institutes

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© 2004 Sherif Kamel www.citegypt.com

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© 2004 Sherif Kamel www.citegypt.com

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Provision of affordable PCs, software and Internet connectivity for students.
Introducing computers in school education (bottom-up)
– Kids clubs, schools and universities.
Many access centers in universities and schools
Integrating IT in curricula development
Establishing Information Technology Institutes (ITIs).
Training of trainers
Financed by the government and the private sector.
Copyright
© 2004 Sherif Kamel

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Establishment of over 1375 IT training centers (mass end users literacy centers) with 8-10 PCs in each
TV/Satellite/Video “Media-Driven Society”
Government subsidized Internet Cafes [300 in 2001, focus on low income communities]
Introducing the TACC Model [Technology Awareness
Community Centers] www.idsc.gov.eg
Copyright
© 2004 Sherif Kamel

 11.8 Million telephone lines with massive opportunities for growth (elimination of years-long waiting lists for landlines)
 6.7+ mobile phones (2 operators since Nov 1997)
 48,800+ Public Phones (Pre-Paid Cards, since January
1999
 17% compound annual growth in telecommunications www.mcit.gov.eg
Copyright
© 2004 Sherif Kamel

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Free Internet initiative (January 2002) which boosted the
Internet users from 400000 in 1999 to 3.6 million (1.1 million households) in 2004
ISPs collect their revenues as a percentage of the telephone call cost (currently 70%).
Plan is to reach 1.6 million households = 5.5 million users (2005)
 Establishment of over 970 IT clubs for communities across the different 26 provinces (mostly in rural and poor areas) www.mcit.gov.eg
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© 2004 Sherif Kamel

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PC for every home project allowing the purchase of computers on installments and at affordable prices
76000+ sold in the first month, plan is to penetrate 200000 households annually
 2% computer penetration rate (2002)
 Problem in financing purchasing computers (need a system based on installments NOT cash)
 Collateral could be the land line (guaranteed by Telecom
Egypt)
 Computer prices range between LE230-3400 (10% is paid as down payment, monthly installment of LE70-100)
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© 2004 Sherif Kamel

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Broadband initiative
May 2004 – widen utilization of ICT in Egypt
LE150 per month for connectivity
9 companies cooperating with Telecom Egypt for service provision
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© 2004 Sherif Kamel

 Challenge o
Develop the use of communications and information technology to serve
Egypt’s development objectives (build the industry)
 Over 1100 firms in the industry in 2004 (350% growth rate from 1999).
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Average employees per firm (15-50).
Over 270K-350K PCs sold annually.
35% of domestic annual growth in IT products and services
200% of annual growth rate in exports (mainly to Arab
Countries
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Arabization of Software).
GOE is the largest user with 25% of total IT consumption.
www.mcit.gov.eg
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© 2004 Sherif Kamel

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© 2004 Sherif Kamel www.citegypt.com

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© 2004 Sherif Kamel www.citegypt.com

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© 2004 Sherif Kamel www.citegypt.com

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Government subsidized Internet Cafés o
Created in youth centers, public libraries o o o o
Schools and NGOs
Focusing on deprived and low income communities
Establish Internet Café
Technology access centers
Building Smart Villages
Software development
Information technology services
Consultation
Assembly manufacturing of computers and peripherals
Training
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Business development
First Project
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Pyramids Smart Village
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© 2004 Sherif Kamel

 eReadiness
 eBusiness
 eLearning
 eHealth
 eHeritage
 CIT-Industry Development
 eGoverment
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© 2004 Sherif Kamel

Indicator
Internet users
PCs
IT clubs
Broadband
Subscribers
2004
3.6 million users
1.5 million PCs
1000 clubs
15000
2007
7 million users
3 million PCs
3000 clubs
500000
Annual rate of growth
48.57%
50%
66.67%
956%
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© 2004 Sherif Kamel

 Providing the necessary legislation for electronic transactions
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National Postal Authority
Leading eBusiness example in Egypt
 Postal checks = LE149 million
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Pensions = LE3.08 million payees (LE832 million per month)
Savings accounts = 12.1 million customers (LE 28.7 billion)
Service outlets = 3391 government offices, 5549 nongovernment outlets
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© 2004 Sherif Kamel

 Spreading knowledge through a hybrid of interactive models
 Integrating ICT in the educational system
 Developing experts in advanced ICT (certified by leading
ICT multinationals)
 Establishing smart schools (state-of-the-art infrastructure) – 12000 schools were connected in 2003
 Establishing eLearning centers
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© 2004 Sherif Kamel

 Establishing a network for telemedicine
 Setting up a data warehouse for medical records
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© 2004 Sherif Kamel

 Establishing an information-base for Egyptian civilization and natural preservation
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© 2004 Sherif Kamel

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Promoting exports
Outsourcing o o o o
Developing centers of excellence in software engineering
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Use of the Smart village
300 acres
 54 companies (25000-30000 job openings)
Moving MCIT, TRA, and CASE to the Smart Village
Microsoft, Alcatel, Vodafone and Ericsson are there
Should be generating 250-300 million US dollars within 5 years
Investment incentives (tax exemptions)
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© 2004 Sherif Kamel

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Establish a long-term ICT infrastructure development plan
Government-private sector partnership for the development of the
ICT sector
Invest in human resources (build a knowledge-based society)
To minimize the “digital divide” between rich and poor, urban and rural areas, men and women, young and old
Forging alliances with multinationals
Developing an increasing local market need
Encouraging venture capital financing
Promoting incubators start-ups
Investing in high-tech industries
Building an online business environment
Copyright
© 2004 Sherif Kamel

 New telecommunications act expected in 2005
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Electronic signature bill was signed in April 2004
Allowing the use of electronic signatures in financial transactions
 Telecommunication sector to be fully liberalized by the end of 2005
 Establishing the Authority for IT Industry Development to handle all matters relating to eBusiness
Copyright
© 2004 Sherif Kamel