Digital economy as driver of growth
Minister Raafat Hindy says fibre-optic networks have expanded, 5G has been rolled out and mobile spectrum has been allocated in an ambitious technology push.
Egypt's digital economy is rapidly gaining prominence as a key driver of growth and development in the nation. While discussions about the country's economic transformation have traditionally centered around infrastructure, manufacturing, and energy, the technology sector is rapidly emerging as a cornerstone of Egypt's future prosperity.
The government's ambitious strategy aims to position Egypt as one of the leading digital economies in the region, not just by bolstering the ICT sector but by creating the necessary infrastructure, regulatory framework, and talent pool to support a wider digital economy transition.
The ICT sector's contribution to GDP has risen to approximately 6%, with policymakers targeting an increase to around 8% in the coming years. Over the next five to ten years, the ICT sector is expected to solidify its position as a principal engine of national economic growth and a critical component of Egypt's shift towards a knowledge and innovation-driven economy.
H.E. Eng. Raafat Hindy, Minister of Communications and Information Technology, emphasizes the importance of building the digital foundations to support future industries, including cloud computing, fintech, artificial intelligence, and advanced manufacturing.
Egypt has made significant investments in digital infrastructure, with over $6 billion allocated to broadband networks, telecommunications infrastructure, and internet services since 2019. The country boasts some of the fastest fixed broadband speeds in Africa, thanks to the expansion of fibre-optic networks and the rollout of 5G services.
Additional spectrum has been released to mobile network operators, further bolstering the mobile infrastructure. These investments in digital infrastructure are designed to lay the groundwork for future industries, which can build upon the robust platform established by these foundational investments.
Beyond infrastructure, Egypt has also focused on creating a positive regulatory environment that fosters innovation and investment in technology. Recent reforms, such as the Cybercrime Law, the Personal Data Protection Law, the Cloud First Policy, and the Open Data Policy, aim to provide regulatory certainty and support for technology businesses.
These measures seek to create a secure and predictable environment for companies operating in data-intensive industries, simplifying investment procedures and supporting emerging technology sectors. In particular, Egypt is well-positioned to become a regional hub for data centers, capitalizing on its extensive fibre infrastructure, strong international connectivity, growing pool of technology talent, and increasingly mature regulatory environment.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
