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Al-Ahram Weekly 30 March - 5 April 2000 Issue No. 475 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 30 March - 5 April 2000 Issue No. 475
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Special Focus Travel Living Sports Profile People Time Out Chronicles Cartoons A regional pioneer
By Nevine KhalilWhy is Information Technology (IT) so high on the agenda of the President's US visit?
The president has been very supportive of IT and high-tech development since last September, when he announced the launching of the National Programme for Technology Development. This is his first visit to the US since then, so it's only normal that a central item on the agenda should be promoting joint ventures in these fields between Egyptian and US companies.
We also see it as a good opportunity to explain what Egypt is doing to promote its IT industry, along with other elements of our communication and IT plans. We are in discussions on these matters with our US counterparts, both in government and in the private sector. We're taking this visit very seriously.
What are the results of these discussions so far?
At the government-to-government level, we are discussing cooperation and support for e-commerce and human resource development, along with the creation of an industry development corporation. At the private-sector level, we are looking for opportunities for US companies to invest directly in Egypt's IT and telecommunications sectors.
Such investments should be made in partnership with Egyptian companies. We are also looking for opportunities for Egyptian corporations to address software needs in the US market directly. Egypt has the potential to be an exporter of software to the US.
Why is Egypt so interested in developing its IT sector?
President Mubarak chairing the Presidents' Council; inaugurating the website of the Egyptian Embassy during his visit to North Virginia; receiving the Palestinian delegation; welcoming members of the Egyptian-American community to the White House reception; meeting with World Bank director
We cannot afford not to. If we ignore what's happening in the world in IT, the gap between us and the developed world will only get wider. For example, a lot of global trade will be conducted as electronic commerce, and if Egypt is not prepared to deal with that, we may lose our share of that trade. So it's not a matter of choice -- we have to do to make surewe are one of the developing countries which succeed in this arena.
To achieve this, we will establish the required groundwork, such as legislation to protect e-commerce transactions.
On Monday, President Mubarak was in North Virginia to meet with leaders of the IT sector there. How fruitful was that visit?
Virginia is an emerging state in terms of IT. It is home to a large number of "new wave" companies, such as America Online. The president's visit was a major event, because he was addressing a large group of American businessmen, mainly working in the IT arena. He pointed out Egypt's commitment to be a leader in technology development and highlighted the incentives available for investment in Egypt in this field.
We believe that we are a very lucrative market for IT companies. There's a lot of potential for investment, because our telecommunications services have to expand greatly in the future, both in the infrastructure itself and in related services. We also see Egypt as a regional hub and a gateway to both the Arab area and Africa. So we're not promoting Egypt for its local market alone. Egypt can also function as a very important technical hub for Arabic software development.
What incentives are there for US investors?
The incentives are many. Half of Egypt's population is under 25 and there are 180,000 university graduates every year. Geographically, we are positioned at the centre of many markets: the Middle East, the Arab world and Africa. Egypt has always been the focal point of Arab thought and can therefore serve as a prime springboard for content in Arabic. The message we are conveying to the Americans is that Egypt has the potential to be a pioneer in the region in this field.
There are already some IT companies operating in Egypt. What is their record like?
Companies like IBM, Microsoft and Oracle already have operations in Egypt. Now we are looking to expand these operations and deepen the value-added component that is produced within Egypt. We'd like these companies not just to market their products, but to develop some of them in Egypt as well. That will be key to changing the way they look at Egypt -- not just as a marke, but as a place where they can jointly develop new software, products and services. The value-added component would help create jobs, and also help our balance of payments.
Are you specifically looking for large companies who could make large investments?
Many major American companies already operate in Egypt, but we are also looking for middle-ranking companies, who are likely to grow their operations there. Big companies usually have different objectives. They would look at the Egyptian market as just one small fraction of their operations, and they wouldn't have any particular enthusiasm for that market. I think we stand a better chance with the medium-size companies.
When should we expect to see tangible results from these projects?
There have already been concrete results from this visit. Several agreements have been signed, including one with IBM which will be very important for human resource development. IBM will be helping us train some 3,000 professionals, as part of a programme involving a total of 5,000 people annually. We aim to have this programme up and running by the end of the year.
We also signed an agreement between Telecom Egypt and an American company [Lucent Technologies] for domain name registration. Egypt will be the company's sole representative in the Middle East and Africa. This is very significant, since it is a first in the developing world. A number of private sector companies on both sides also signed partnership agreements.
How would you characterise the American response so far?
I think the Americans are very interested in Egypt. They are very positive. Our talks have covered every possible angle, and I think that we'll get positive results. We don't need to do much more convincing -- the private sector in the US sees what's happening in Egypt, and US government thinking is very much in line with our own goals and objectives.
Will part of US aid to Egypt be channelled towards this sector?
The short answer is, 'yes.' As you know, USAID is re-structuring its programmes, and we see an opportunity there to channel some of the aid to the IT sector, for many reasons. For example, we don't need aid in infrastructure any more. But we will need funds for other purposes, especially to establish a regulatory framework and put in place all the necessary entities and organisations so as to address the new market in a coherent manner.
