A PC in every home?
The greatest number of computers for the greatest number of people. Niveen Wahish reports on an ambitious government scheme
The Ministry of Communications and Information Technology (MCIT) has launched an initiative aimed at quadrupling Egypt's installed computer base and jump-starting the growth of its CIT sector.
After more than a year in the making, the "Affordable PC Initiative" is finally on the road. The idea behind the initiative is ambitious: facilitating the purchase of a personal computer by the greatest number of people and enabling every Egyptian home to own a computer.
According to Ahmed Abu Taleb, the Affordable PC project manager, it is hoped that the initiative will help boost Egypt's installed computer base from the current 1.5 million machines, of which 0.5 million are in the business sector, to 6.5 million PCs within five years.
The initiative, launched in co-operation with Telecom Egypt and Banque Misr, not only makes personal computers available at a price that is 10 per cent cheaper than the market, but, more importantly, buyers can pay in installments extending to up to three years at a reduced interest rate of seven per cent.
"Installments payment was of key importance," said Abu Taleb, saying that many Egyptian families cannot afford to pay in cash for a computer, which averages LE3,000.
The initiative is part of MCIT's numerous efforts to set the infrastructure for the development and growth of Egypt's CIT sector, which is far from realising its full potential.
Moreover, if Egypt were to increase the number of people working in the CIT sector to match the worldwide rate of four per cent of the labour force, the country would have 800,000 people working in CIT, instead of the current 50,000.
"These 800,000 people would generate a value-added to GDP of around $16 billion," Abu Taleb said. To reach that number, these individuals need both the training and the hardware required.
The initiative makes available three models of personal computers at prices ranging from LE2,000 to LE3,000. The machines, mainly of Korean and Taiwanese components, are assembled locally. One company, Centra Technologies, has been established to supply the machines. It is 58 per cent owned by Telecom Egypt and Banque Misr and 42 per cent owned by the private sector. The government's partial ownership of the company is meant to reassure the other suppliers.
Initially reluctant to take part in the initiative for fear of insufficient demand, traders were instead pleasantly surprised.
In the first week following the launch of the initiative, 4,000 applications for PCs were filed, Abu Taleb said. "Our expectations had been for 5,000 sets every month," he said. Nonetheless, he said the ministry had a stock of 10,000 sets that is being replenished.
With such a high demand, Abu Taleb said there was a strong possibility they would be manufacturing some of the components locally, such as the monitors, motherboards and the casing. "Egypt has the technology, know-how and production lines to achieve this," he said. Now that market demand has been proven, they can begin to manufacture under the supervision of companies in Taiwan and Korea, according to Abu Taleb. If local manufacturing becomes a reality, a further 10 per cent reduction on prices could be expected.
Interested in taking the opportunity and acquiring a computer? Head to any one of 14 telephone exchange centres with your ID and your most recent telephone bill. If the bill is not in your name, you should have a power of attorney (tawkeel) at hand. Staff at a booth specified to receive requests for the computers will make sure you have made regular telephone bill payments throughout the past year.
You will then be required to pay an advance of LE300 and will be given a receipt to take to the Banque Misr booth, also located in the same telephone exchange. You will be required to sign a few documents stating that if you do not pay regularly, the telephone line will be cut and Banque Misr will have the right to sue you to get its money back. With the papers all signed, you will then head to the nearest distributor and receive your PC.
The fourteen telephone exchange centres participating in the programme are:
Cairo: Roda, Heliopolis, Nasr City 1, Shubra, Giza, Zamalek, Maadi, Sheraton, Opera.
Alexandria: Mansheya, Miamy, Gleem.
Assiut: Assiut Sharq
Mansoura: Mansoura Sharq.
