How digital transformation is creating business opportunities in Egypt

Digital transformation is an evolution that has taken place over the last few decades. It has led to a better and more connected world. Digital transformation in Egypt is not much different from what it is in other countries worldwide.

Digital transformation has become a key topic for many leading companies and governments, as well as in Egypt, where the digital landscape is undergoing a rapid transformation. With a population of more than 102.3 million people, Egypt has one of the fastest-growing economies, with an annual GDP growth rate of about 5.3%. And this is mainly due to increased government spending on infrastructure, which has led to new business opportunities for IT companies.

Egyptian businesses are taking advantage of this digital transformation and creating new opportunities for themselves so that they can now compete with global players in their respective industries.

Developing ICT Infrastructure

Egypt has spent substantially constructing and improving its technological infrastructure and national infostructure since the early 1980s to become a platform facilitator for its development and progress.

Egypt has developed a national strategy to achieve its socio-economic development goals and address several issues, including debt, illiteracy, insufficient infrastructure, and the need for structural transformation. The strategy has been modified multiple times over the years to meet local and global developments, with ICT serving as a constant driver for strategy formulation, development, and implementation.

Accelerating the pace of digital transformation

Egypt has stepped up its efforts in this area in response to the epidemic and its attendant issues. Egypt’s budget plan statistics increased public investment allocations for the information and communication technology (ICT) industry by an unprecedented 300 percent in FY 2021/22 to accelerate digital transformation.

The Federation of Egyptian Chambers of Commerce launched the Digital Future initiative in collaboration with the Ministry of Public Business Sector, Microsoft, and Fiber Misr Systems, intending to assist Egypt’s medium and small-sized enterprises (SMEs) in dealing with the digital transformation amid the crisis.

Over the last few decades, Egypt has made some decent progress in the digitization process.

There is some apparent and relatively advanced digital adoption by people on an individual level.
Adoption via tech-enabled start-ups and through ICT-enabled services is expanding and promising.
Adoption of electronic government services at an early stage.
A small degree of ICT adoption by private sector businesses.

With more widespread ICT infrastructure and connection, as well as increasing ICT usage, the potential impact of digital transformation on Egypt’s economy might be tremendous and game-changing.

Conclusion

Egypt has a unique chance to alter various economic sectors, including financial services, commerce, healthcare, agriculture, and manufacturing, while also providing possibilities for individuals and businesses, as well as influencing equitable development and economic progress.

While digitalization has the potential to transform the economy, it must be accompanied by the necessary technological infrastructure, human capital, and appropriate legal, regulatory, and other enabling environments in order for digital transformation to become a platform for equity rather than division.