Al-Ahram Weekly 30 March - 5 April 2000 Issue No. 475
Published in Cairo by AL-AHRAM established in 1875

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Crossing e-borders

By Nevine Khalil

Information Technology (IT) was the focus of discussions for the Presidents' Council when they met with President Hosni Mubarak on Monday. Mubarak usually chairs the meetings jointly with US Vice-President Al Gore, but this time he was on his own, Gore being prevented from attending by his presidential campaign commitments.

In the course of the meeting, Mubarak affirmed Cairo's commitment to maintaining macro-economic stability and improving Egypt's investment and trade environment. The items on the agenda -- high technology, human resource development and trade relations -- were the same as those discussed during Mubarak's last visit to the US in June 1999. This year, however, positions were hammered out in detail, as Egyptian cabinet ministers outlined the government's vision for the telecommunications and IT sectors, as well as the latest steps taken to remove trade restrictions.

Last September, Mubarak launched the Egyptian National Project for Technological Revival, and he has since promoted an aggressive technology agenda by approving Egypt's First National Plan for Telecommunications and Information Technology. Mubarak also asked Nobel Chemistry laureate Ahmed Zweil to work with the government on the establishment of the University of Science and Technology, which will be the largest technology-focused university in the Middle East. The Mubarak City for Science and Technology in Alexandria, the Technology Valley in Ismailia, along with plans to build Smart Villages across Egypt, all aim to ensure that the new technology momentum is a national, all-inclusive priority. One American Council member even referred to Mubarak as the "e-President", for his commitment to Egypt's technological revolution.

"The government's main focus will be to maintain, expand and upgrade the core telecommunications network," said Gamal Mubarak, spokesman for the Egyptian side of the Presidents' Council. "This network will be the thrust of the government's information technology plan."

He explained that the government's task is to keep up with developments in the international IT scene by "improving speed, access, and availability of connectivity," so as to keep the "revolution" moving forward. At the same time, "the biggest part [of the task] will be shouldered by the private sector, both local and foreign."

The responsibility for ensuring that this vision is realised will thus largely devolve upon the various private sector institutions, including the Presidents' Council. "We go out with the backing of the government plan, the incentives, and with all our information and persuasion to talk to international companies," Gamal Mubarak added.

The government's plan will cost $1 billion in total. Part of the funding for this will be earmarked in the budget presented to parliament next month.

The government is also soon to corporatise the national telecommunications authority, Egypt Telecom, so as to subject it to the disciplines of corporate structure. Egypt Telecom will also be charged with upgrading the country's Internet access, web portals, and other related services, while the government and regulatory bodies will license services to the private sector at home and abroad.

"Egypt Telecom will have a major responsibility for upgrading and maintaining the system, but this is not the end of the story," according to Gamal Mubarak. "It's the core, smaller part."

President Mubarak pondering weighty matters with US President Bill Clinton; sharing a joke with Vice President Al Gore; and demonstrating his habitual good humour in talks with Secretary of State Madeleine Albright

The bigger picture concerns the private sector. "Yes, the government will have to invest, but the biggest part of the drive will be the responsibility of the private sector," he added.

During Monday's meeting, the Council outlined efforts and initiatives undertaken over the past few months in the three areas covered by the agenda.

In the IT field, the Council stressed the importance of continued deregulation of the telecoms sector as a prerequisite for expanding telecom and Internet services in Egypt. The experience of other emerging economies in this field underscore the importance of Intellectual Property Rights (IPR) legislation and enforcement in attracting foreign investment.

The Council recommended that, to this end, Egypt join the World Trade Organisation's (WTO) basic telecom and IT agreements. The Council, which also wants to see Egypt set up efficient regulatory bodies, will co-host a group of high-tech companies next fall to explore investment opportunities in Egypt.

The Council believes that human resource development, a key focus of discussions in past years, is a prerequisite if the Egyptian economy is to compete globally and maximise its potential.

Three projects have been initiated for this purpose. The Future Generation Foundation is an NGO providing basic business skills training for young Egyptian graduates, starting with 1,000 trainees this year. The Mubarak Professional Development Initiative (MPDI) will provide middle management with on-the-job training in US companies, while an innovative MBA programme will send Egyptians to the top 20 US business schools, starting with a first group of 25 students.

Finally, on the issue of trade relations, the Council stressed the importance of both governments engaging in serious discussions with the aim of reaching a Free Trade Agreement (FTA).

A quarterly report will be submitted by the Council to President Mubarak and Vice-President Gore, specifying objectives with defined target dates, progress made and problems encountered that require the attention of the two leaders.

Soon after the Presidents' Council meeting on Monday, Mubarak, escorted by Council members and a delegation of top officials, headed to Northern Virginia to meet with leaders of US high-tech companies. "Egypt is leading significant technology-driven business growth in the Middle East," said Governor James Gilmore, who received the presidential delegation. "We look forward to working closely with [Egypt] to encourage strong business connections between our mutual technology sectors."

Market analysts for the Middle East expect the region to be invigorated in the near future by falling costs for international leased lines and the establishment of new Internet backbone companies.

At PSINet, Mubarak registered the website of the Egyptian embassy in Washington along with distinct URLs for more than 100 Egyptian embassies worldwide.

The president later attended a luncheon where Egyptian businessmen were able to network with their US counterparts. In a keynote address, Mubarak said that although the technology industry in Egypt is relatively small, it is growing quickly as the telecommunications infrastructure is built out and more investments begin to pour in. "We have embarked on an ambitious programme for the assimilation of high technology in our society," he said. "Egypt is committed to supporting the creation of a strong high-tech industry."

Later the same day, Minister of Technology Ahmed Nazif, along with US Secretary of Technology Don Upson, led a discussion with top IT leaders on the growing technology market in Egypt, at which several joint activities to maintain the technology connection between the two regions were proposed. The two sides also signed an agreement between Telecom Egypt and Lucent Technologies in the area of domain name registration on the Internet.

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